Rochester Real Estate Attorney Discusses Closing Costs
- Closing costs paid by each side are spelled out in the contract, and the buyer of a foreclosure property will usually have to pay all the normal closing costs because the seller may not contribute anything – even a search or survey, although some may provide title insurance. They may provide title insurance but not a survey.
- We strongly recommend that the buyer pay for a survey and have it incorporated into the seller’s title insurance policy because costs are heavily dependent on what the contract says.
- Normally, although it can be changed by contract, the buyer will pay all recording costs while the seller will usually pay the transfer tax.
- In non-foreclosure sales, the seller will pay for the search and survey, as well as any necessary title corrections.
- In case of a title defect they cannot cure, sellers will pay for title insurance and this point is addressed in the contract.
- Some foreclosures may incur a penalty for failure to close on the projected closing date, but those penalties are negotiable. Delays may be caused by a need to order a survey because a majority of foreclosure sales will not include the survey and the buyer will order one.