First timers in the world of real estate and closings are bound to come across terminology they’ve either never heard of before, or don’t completely understand. So to help with that, we’ve outlined some common closing cost terms to assist new homebuyers with their closing endeavors.
Contract of Sale
A contract is a legally binding agreement between a seller and purchaser in which each party gives consideration to define the terms of the sale/purchase.
A closing fee is charged as a service. This is a usual and customary fee by the title insurance company.
A title search, also called a title report or abstract of title, is used to verify that the seller is the true owner of the property being sold and that the seller has the right to sell it.
Title Insurance protects the insured in the event of a lien or possible other problems with the title for the property in question, this may include something that was missed or overlooked. Title Insurance protects the insured from day of closing into the past.
The recording fee covers the cost of recording the conveyance or lien of the property in public records.
Deed Documentary Stamps (County/State Tax)
Deed Documentary Stamp fee is charged by the governing county/state where the property is being settled. This fee is charged on the sales price of the property, payable to the county.
At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: Types of Child Custody