Don’t Think It’s Over! A Seller’s Closing Costs May Still Be Waiting to Close the Deal
Your Real Estate Transaction is Almost Done, but You Should be Aware of these Sneaky Closing Costs and Fees in New Jersey
When selling a home in New Jersey, it’s tempting to think that the only expenses will include real estate agent fees and fixes to the house. Unfortunately, this isn’t the case. There are many hidden expenses to consider when selling your New Jersey home. Read on to learn more about what fees need to be examined in a New Jersey real estate sale.
Additional Fees to Consider when Selling a House in New Jersey
When selling a New Jersey home, consider the following additional payments that will have to be made. The sale price will allow a starter figure; in the closure of the sale, however, there are many minor expenses that add up. Some such expenses are those involved in the preparation of the house for showing and sale, a loan repayment fee to the mortgage provider, moving costs, the additional money that must be invested into the house in repairs in preparation for sale, and upon the inspector’s run-through, realtor fees, title attorney and settlement agent fees, New Jersey safety certifications, and don’t forget income taxes associated with the sale of the property as a capital gain.
While a buyer is generally responsible for covering closing costs related to a sale, with the exception of realtor fees, most of the other costs and fees associated with a sale are the responsibility of the seller. For example, there are numerous fees involved in completing the title transfer. In order to transfer the property title to the buyer, the seller needs to pay off the home’s current mortgage by reaching what is called a payoff settlement with their mortgage lender. While this settlement includes the outstanding balance to be paid off on the property, it will also include minor additional fees such as a per diem loan interest. And you may be charged small loan reconveyance and recording fees for the work of drawing up the contract releasing the lender’s mortgage lien, as well as recording the reconveyance in the county’s public records office. Then, there is the actual transfer of the title, for which a seller must pay a New Jersey Realty Transfer Fee (RTF), equaling one percent of the sale amount, to the state’s Department of Taxation.
There are also quarterly taxes owed to the state of New Jersey that the seller is responsible for, for the full extent of the time they are title holders. From the first of the year to the date of closing, the seller is responsible for paying property taxes. And depending on the size of the property, there’s a possibility that the seller will be responsible for paying the one-percent New Jersey mansion tax as well.
Understanding a Closing Disclosure and How to Read It
Which party or is credited what will be itemized in a settlement statement, otherwise known as a closing disclosure. One of the documents signed by both the buyer and seller is the closing disclosure, and it is accompanied by the buyer’s signing of the property’s deed of trust and a promissory note that outlines when regular mortgage payments will be made. These documents are submitted to the New Jersey county clerk’s office in the property’s county. The closing disclosure document also outlines the terms and conditions of the sale. The signing of a closing disclosure is one of the final steps in the house closing process. Once the terms of sale have been confirmed between buyer and seller, a house inspector has ensured that all appropriate fixtures are in place for sale at the current asking price, and the buyer has secured a mortgage loan from a lender, the buyer and seller confirm with their real estate attorneys that all elements of the agreement are intact and correct. Once this is finalized, closing documents are signed while a legal notary is present.
Experienced Lawyers Can Help You Track, Record, and Protect Yourself with Regard to Fee Payments
The process of negotiating, closing on, and finalizing the sale of a home or property is a complex and expensive process that can be made that much more convoluted and expensive by any number of road bumps along the way. For this reason, it is essential to have the dedicated guidance and assistance of a real estate attorney through each step of the process. Because there are so many hidden fees and fixtures associated with a home sale, both buyer and seller can face elevated costs related to the sale. Additionally, a buyer or seller working without the experienced expertise of a real estate attorney may find that they are cheated out of thousands of dollars due to contingencies that release the other party from financial responsibilities traditionally their responsibility in such a sale. A real estate attorney will ensure that the terms and conditions are in their client’s favor and ensure a swift and fair transition of title and that explicitly and clearly laid out in the contract is who is responsible for payment of all minute fees associated with the sale.
Faced with the Closing when Selling Your Home in NJ? Contact our Dedicated Real Estate Lawyers
Are you in the process of selling your home and want to ensure that your financial security and best interests are protected? We at The Bronzino Law Firm have a history of walking our clients through the buying and selling process, helping them from the start of the real estate journey to the very end and beyond in Middletown, Eatontown, Tinton Falls, Howell, Sea Bright, Red Bank, Rumson, Manchester, and other Ocean and Monmouth County towns.