The most exciting day of any real-estate transaction is the closing. Both the buyer and the seller can finally reap the benefits from all of their hard work. While neither party likes surprises at the closing, many homebuyers are caught off guard by the number of additional costs that come up during the transfer or ownership. Not all of these will apply in every situation but it is a good idea to understand what they all mean.
Below are some of the common Vermont fees included in a typical settlement. If you would like more information or have questions, contact us today.
- Origination fee
Fee charged by a lender to cover the costs of evaluating and processing your loan, usually a percentage of the loan amount.
- Attorney’s fee covers these services:
- Review of the purchase and sale agreement
- Review of the commitment letter from the lender
- Review of the Warranty Deed from the seller's Attorney
- Review of the property transfer tax return
- Title search
- Assessment of State and Local Permits on the property
- Preparation of the title insurance commitment
- Working to resolve any title problems
- Attending the closing to explain closing documents to you
- Recording your deed and other documents
- Issuing the title insurance policies
- Initial escrow payments
- some portion of property taxes
- some lenders require a full year, in advance, of homeowner’s insurance to be placed into escrow before closing
- Title insurance
Protects you and the lender from losses that may result from a dispute over the property's title.
- Vermont Property transfer tax
The State of Vermont requires the buyer to pay a transfer tax whenever there is a purchase of real estate. The amount of the transfer tax is generally one and a quarter percent of the purchase price. The tax is discounted to one half of one percent for the first $100,000.00 of the purchase price if you use the property as your primary residence. Learn more about tax considerations here.