Real Estate Closing Cost in Key West

Financial aspects of the real estate closing in key West

 At the time of closing, the seller and buyer will total up various credits in order to determine how much money the buyer must pay. The real estate seller will receive credits for such items as fuel on hand (such as oil in the home heating tank), unused insurance premiums, prepaid interest, and escrow deposits for insurance, taxes, and public utility charges such as water and sewer fees. These credits also will include any other items prepaid by the seller that will benefit the buyer.

Closing documents

The Key West Home Buyer normally will receive credits for such items as the earnest money deposited and taxes or special assessments that the seller has not paid. The settlement sheet also will specify who is responsible for the payment of various expenses. These will include the sales commissions and the costs of the title search, inspections, recording fees, transaction taxes, and the like. The allocation of such expenses will depend on the terms of your contract as well as the law and customs in your area. Your Key West real estate agent or attorney should advise you ahead of time of how much money you will need at the closing. Typically, you will be required to have a certified check in the amount required to meet these expenses.

The chart below by no means exhausts the list of fees that might be charged at closing. Other common fees include: real estate  loan origination fee to cover the lender's administrative costs in processing the loan; credit report fee; lender's appraisal fee; mortgage insurance application fee; mortgage insurance premium; and hazard insurance premium. Buyers also may have to put money into escrow to assure future payment of such recurring items as real estate taxes. Also, there often are separate document fees that cover the preparation of final legal papers such as the promissory note and mortgage or deed of trust.  

Closing costs usually include all or most of the following:

1. Real Estate Appraisal fee

This is the fee paid for an appraisal of the property. It is required by the lender and often is paid for by the Key West Home Buyer. The Federal Housing Administration and Veterans Administration establish the appraisal fees for mortgages that they guarantee. 

2. Local Key West Attorney's fee 

The Key West Home Buyer and Real Estate Seller pay the fee for their own lawyers. In some states, buyers are required to pay for the lender's attorney. This fee may be a certain percentage of the mortgage or a fixed fee. 

3. Survey fee

If the real estate lender requires a registered survey, the buyer probably will pay the fee. You may be able to avoid this fee if the lender agrees to accept a recent survey done for the real estate seller. However, the seller must sign a document stating that the property lines have not changed since the completion of the survey and there have been no additional improvements to the property since the survey was taken. Even then, a title insurance company may require a new survey unless the survey is current or has been recertified recently. 

4. Real Estate Loan discount fee (points) 

This is the lender's charge to the buyer to obtain the loan. The Key West Home Buyer may have paid some of this fee in advance to secure the loan. 

5. Key West Inspection fees 

Charges for general inspections or inspections required by local laws. The Key West Home Buyer or Real Estate Seller may be responsible for these fees depending on the contract and local law and custom.  

6. Title fees 

Cost of title search. 

7. Title insurance 

The cost of title insurance, usually divided between the seller and buyer. The Real Estate Seller pays for the Key West Home Buyer's policy and the buyer pays for the lender's policy.

8. Recording fees

The cost for recording change of ownership such as a deed; the cost of recording the Key West Home Buyer's mortgage; recording the release of the seller's mortgage by the seller's lender; and recording the release of any liens found in the record of title.