REAL ESTATE FAQ

 

             Q.  What closing costs am I required to pay at closing?

     A.   The payment of closing costs is a negotiable term under your real estate contract.  However, it is customary in Sarasota County, Florida, that the Buyer pays the following costs at closing.

 

1.       Title Insurance related Costs.  These include the fees to search and examine the title to the property, the cost of the title insurance policy, and the closing fee.

 

2.       Survey.  It is generally recommended that a survey be purchased prior to closing for all properties other than condominiums.  However, if the seller has a recent survey and is willing to sign an affidavit saying the property has not been altered, a new survey may not be required.  If the property is in a flood zone, an elevation certificate will also be required.  The price of a survey can vary depending on the size and location of the property.  The cost of a typical residential survey is $275.

 

3.       Wood Destroying Organism Report.  The average cost is $60.  We recommend that all buyers obtain one regardless of the age and construction of the home.

 

4.       Recording Fee.  The cost to record Deeds and Mortgages in the public records is $6.00 for the first page and $4.50 for each additional page.  Most deeds are less than two pages.  The average Mortgage is 16-18 pages.

 

5.       Costs Associated with Mortgage Financing.  If you are financing your purchase, your lender will provide you with a Good Faith estimate of Closing Costs.  The estimate will include the above described costs, as well as the Lender´s costs.

 

6.       Documentary Tax on the Mortgage.  This is a state tax and it is computed by dividing the amount of the mortgage by 100 and multiplying times $.35.

 

7.       Intangible Tax on the Mortgage.  This is a state tax and it is computed by multiplying the amount of the mortgage by $.002.

 

8.       Documentary Tax on the Deed.  This is a state tax and it is computed by dividing the sales price of the property by 100 and multiplying times $.70.  In Sarasota County it is often paid by the Seller, but it can also be a negotiable item.

 

Q.      Must I be present for my closing?


A.      No.  Many of our clients are domiciled in other states or countries.  They can be served t either via     e-mail or Federal Express. Detailed instructions are provided for proper execution of the documents.

 

Q.      What is Title Insurance and must I have it?


A.      If you are financing your purchase, your lender will require that you purchase title insurance insuring the mortgage given at the closing.  A simultaneous policy can be issued insuring the buyer for an additional $25.00.

 

Q.      What types of claims would a Title Policy guard against?


A.      There are many claims covered under a typical Title Insurance Policy.  A few are listed below:

a.       False impersonation of a seller or other persons previously in title.

b.       Forgery

c.        Improperly executed deeds.

d.       Deeds executed without a required spouse´s signature

e.        Fraud

f.        Undisclosed heirs or descendants of former owners of your property.

 

Q.      Must I hire an attorney for my closing?


A.      Unlike other states, it is not a requirement that an attorney conduct your closing.  However, since the cost of title insurance does not increase when an attorney represents you at closing, I encourage my buyers to hire one.   While title insurance companies are generally reliable and efficient, their services are limited to conducting the closing.  Their employees are incapable of drafting, reviewing or interpreting your contract.  In addition to providing those services, an attorney can assist you in negotiating the terms of your contract.  Usual attorney fees for closings for my clients run $75.00 to the buyer, $75.00 to the seller.

 

Q.      Tell me about the homestead exemption.


A.   Florida residents that own and live in a home as of January 1st of a given tax year are granted an exemption of $25,000 off the assessed value of their home.  To be eligible for the exemption, you must file with the County Property Appraiser between January 1st and March 1st for the first time.  It will automatically be renewed annually.  The County Property Appraiser will send you the renewal form by mail.  No further action is required of you once you have filed.