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.

This educational legal video was brought to you by Robert Friedman, an experienced Rochester Real Estate Attorney.