Important Tips for Completing a Residential Contract for Sale and Purchase – Part 9(a): Closing Cost; Title Insurance; Survey; Home Warranty; Special Assessments:

Closing Cost; Title Insurance; Survey; Home Warranty; Special Assessments

Section (a) outlines the costs that are to be paid by the Seller at closing. These costs are the Documentary Stamp taxes and surtax on deed (if any), Owner’s Policy and Charges, Title search charges, HOA/Condominium Association estoppel fees, Recording and other fees needed to cure title, and Seller’s attorney. The section entitled Other allows the Buyer and Seller to include any additional cost to be paid by the Seller that was not expressly mentioned in the list above. This section then allows for the Seller to outline the percentages and cost for the General repair limit, the WDO limit, and the Permit limit. If a percentage or dollar amount is not expressed, the default amount of the category will be 1.5%. This section also makes a provision that allows the maintenance requirement and the repairs, replacements, treatments or permitting costs to be escrowed if the sums are equal to 125% and the Seller is unable to meet these requirements before Closing. However, if the cost of the sums of the maintenance requirement and the repairs, replacements, treatments or permitting costs exceed the applicable escrowed amounts then the Seller will have to pay the actual costs. These actual cost cannot exceed limits detailed above (i.e. General repair limit, the WDO limit, and the Permit limit). The unused escrow amounts will be returned to Seller.