Real Estate Commission. The total amount of commission due will be expressed as a percent of the sales price and dollar amount payable to each real estate company involved in the transaction. Even though the other real estate company represented the buyer (as agent) you still pay the commission. If you are a TCB seller then you will realize the commission we saved you. And “If you are not happy don’t pay”.
Loan Discount Fees. If you have agreed to pay discount fees on behalf of buyer the charge will be expressed as a percent and a dollar amount.
Title Company Fees. Typically, there should not be any fees due from seller to the title company. Unfortunately, some title companies will attempt to push some questionable fees to the seller. Items such as doc prep fee, notary fees, copying fees etc. should be carefully reviewed. Typically, the only document the title company will create, on behalf of seller, is the deed and there should not be an additional charge for the deed. Remember, the Lender will have furnished all the mortgage related documents to the title company. Your TCB agent will alert you to any questionable fees.
Transfer Taxes and Recordation fees. Your contract will stipulate how these charges are to be shared between the buyer and seller. Typically, these charges will be evenly split between buyer and seller.
Transfer Taxes are imposed on a State and local (county) basis. The state of Maryland charges ½ of 1% of the purchase price. Each county has an addition transfer tax. For example, Anne Arundel County imposes a 1% tax so the tax in AA county will be 1.5% of the sales price. Depending upon the county within Maryland, the fee will be between ½ percent to 1.9%.
Recordation Taxes (AKA documentary stamps) fees are an additional tax based upon the sales price. Depending upon the county, these charges will be between $5 and $10 per $1000 of consideration. There will a relatively small ($50-$100) for to record the documents – Mortgage or Deed of Trust and the Deed.
Miscellaneous Seller Charges. Depending upon the borrower’s loan type, the seller may be obligated to pay for small items such as the pest inspection. These items should have been addressed in the purchase agreement.
Adjustment for items paid/unpaid by the seller. Most contracts allow for adjustments of things such as property taxes to be made as of the date of closing. Depending upon the date you close, there will either be a credit to the buyer or credit to the seller for property taxes. For example, the closing date in June 1 and the seller paid the current year’s tax – which means the property taxes have been paid thru July 1st. In this case, the buyer will reimburse the seller for one month’s property tax at time of closing.
Payoffs. The title company will collect money to satisfy all liens of record. Additionally, they will collect for condo or HOA fees due. You should review your mortgage payoff statement to determine whether the payoff amount is net of monies in your existing escrow account and how many days interest beyond closing are being collected. We will happy to review the payoff statement for you.
Seller Concessions. Monies that you have agreed to pay on behalf of buyer will be deducted from the seller. These amounts will include items such as: (a) Seller credit toward buyers’ closing cost or (b) any amount agreed upon as offset to repairs.
Seller Proceeds. Your net proceeds check will be calculated as: [Sales Price – (closing cost+ concession+ payoffs)]