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Article Titles                                                                                                      
Closing Costs     
                                                                                          
(You'll LOVE this.)  "Did you forget to do something today?  NOT ANY MORE!"  

The Truth About Short Sales in Boca Raton & Palm Beach County                    

Do You Know Who Is Your Realtor is Working For?                                          
 

                                                               Closing Costs
Frequently as Realtors, we are asked what the Closing Costs will be. It’s important to note that these costs may vary due to the fact that each transaction is different however, Please note that it is essential to consult with the Title Company prior to any closing. However for those that would like to get an idea what to expect, I’ll take some of the mystery out of what you should expect.  Remember we’re talking about Palm Beach County.  Every county is somewhat different so if you are looking to close on a property in Broward, just know that your costs will be different. 

 

As a Seller in a Cash Transaction you will be responsible for the following:

  1. The Owner pays for Title Insurance in Palm Beach County – in Broward, the Buyer is responsible. 
  2. Documentary Stamps on the Deed are $.70 per $100 based on your sales price. 
  3. You’ll have a Title Search Fee
  4. If you have an existing mortgage or perhaps there is currently a lien on your property, you will be expected to pay that charge.
  5. Upon satisfaction of your mortgage (if applicable) you will be responsible for a recording fee. 
  6. There is always a lien search on the property and that is a fee that the Seller is responsible for.
  7. Tax Pro-rations begin on January 1 up to the closing date.
  8. If a Realtor was involved in the sale of your property, a commission is due.

 

As a Buyer in a Cash Transaction, you will be responsible for the following:

1.      Inspection costs are the sole responsible of the Buyer.  They should include inspections on the interior, roof and termite inspection.  If the property is situated anywhere where there is a dock, it is also the responsibility to have that inspected.

2.      Any Recertification fees.

3.      Recording fees must be paid by the Buyer.

4.      Pro-ration of any maintenance or appliance contracts that have been paid through the end of the year.

 

For a conventional mortgage, charges for both the Seller and Buyer are different.

 

As a Seller who has a Conventional Mortgage, you will be responsible for the following:

1.      Again the Owner pays for the Title Insurance in Palm Beach County – in Broward, the Buyer is financially responsible.

2.      Fees for Documentary Stamps are the same as those on a Cash Transaction, i.e., $.70 per $100 based on your sales price.

3.      Title Search Fees are the same as those of a Cash Transaction. 

4.       Again fees are also the same for paying off any existing mortgages or liens.

5.      Recording fees that accompany the Satisfaction of a Mortgage is the Seller’s responsibility.

6.      Lien Searches are the same as well. 

7.      Tax Pro-rations will be divided appropriately between both the Seller and Buyer using the January 1 to closing criteria.

8.      Realtors’ commissions on the sale of your property are also paid by the Seller.

 

 

As a Buyer having a Conventional Mortgage, you will be responsible for the following:

1.      In Broward, not Palm Beach County, will the Buyer be responsible for paying the Owner’s Title Insurance. 

2.      Within the Lender’s Policy there is a simultaneous issuance of the Mortgage Title Insurance. This is a fee that the Buyer is responsible for.

3.      Any Recertification or Update fees.

4.      Documentary Stamps on the mortgage is $.35 per $100.

5.      There is an Intangible Tax on any mortgage in the amount of $.20 per $100 of the mortgage amount.

6.      The Buyer pays for all the recording fees.

7.      This is interesting – Homeowners Insurance, Taxes MAY be due since it will depend upon the month of the year.  If the property falls within a designated Flood Zone, Flood insurance will be required.  PMI insurance ONLY if applicable.

8.      Sometimes you will be required to pay 1 year of the Homeowner’s Insurance Policy however this varies.

9.      Again you may be responsible for paying one year PMI and Flood insurance but again this varies.

10.  There are also documentary preparation fees.

11.  A credit report fee will be part of your mortgage.

12.  A survey may also be required.

13.  The Buyer pays for any and all inspections on the property including termite, roof and dock.

14.  The lender’s policy may have ALTA endorsements that are the responsibility of the Buyer.

15.  On any mortgage there will be an appraisal and this too is part of what you will pay.

16.  If maintenance for the month or quarter has been paid by the Seller, pro-rations of that maintenance will be charged to the Buyer.  The same holds true for any appliance contracts that are transferred.

17.  If there is interest due on the day of closing, ending at the end of the month, this will be the responsibility of the Buyer. 

 

Please be aware that I’ve broken down many of the items which are usually bundled into the mortgage package.  I hope that this has been helpful for you.     


                             Did you forget to do something today?  NOT ANY MORE! 
Did I hear you say that you forgot to do something today?   Not any more.  With Jott.com, a FREE service that reminds you of all the things you have to do every day, life has become so easy.   You're just going to love this.   Here's the concept.   Your phone will now be transformed into your own personal assistant.  How?  First go to Jott.com and register.  It will only take a few seconds and the prompts will register your phone number.  Once you are registered, call Jott and leave yourself "instructions" as to how you want to be reminded of important facts, appointments or anything else you can think of.  Jott recognizes you from your phone number via caller ID. Then all you need to do is leave yourself a message.  That's it.  Jott then converts your voice message into emails, text messages, reminders, lists  and even appointments.  It will call you at a prescribed time sending you a text message, reminding you based on the instructions you leave for yourself. In addition, it will also send you an Email.  I don't know about you, but I can definitely use a reminder from time to time.  Although I'm very organized, this has become an invaluable tool that has helped me stay clear as to what I want to do the next day....or even a month away.  So often there are times when I just can't write down what's on my mind.  All I need to do is pick up the phone, call Jott and leave myself a message.  Then I receive both a text message and an Email alerting me that I need to perform a task.  I now have a virtual assistant reminding me of everything I need to do.  Whether it reminders me that I have a listing appointment at 5:00 or need to pick up bread and milk from the supermarket, I am now on top of everything....never missing a beat.  
 
Jott can also be used on an iPhone .  It transforms your IPhone into he ultimate mobile notepad by turning your voice into notes. All you need to do is  tap the record screen and leave yourself a note with your voice.  Then Jott turns that note into text and adds it to your Jott notepad.   It can even be added to your lists. No need to use a paper list and cross off each item.  All you need to do is run your finger across the Jott list.  It's so convenient, no matter where you go, you can easily add anything to your notepad.   

Jott also works in conjunction with your Blackberry.  You'll be so surprised how simple it is to use Jott with your Blackberry.  It will allow you to reply to emails on your BlackBerry just by using your VOICE!  It's unbelievable.  All you need to do is speak into your Blackberry (wearing your headset).  It is integrated into the email application you already have in place but believe it or not, it is 3x faster. For further information, go to Jott.com.   


 
                       The Truth About Short Sales in Boca Raton & Palm Beach County  
There  is no doubt that a short sale is considered a better alternative than foreclosure - it's not quite as tough on one's credit rating.  As a result, short sale transactions are becoming more and more prevalent.  Investors who want to purchase a home at a dramatic discount are jumping in head first, but the entire short sale process can be tricky and working with a professional real estate agent who is experienced in short sales is an absolute must. Understanding how to successfully complete this type of transaction isn't something the uninitiated can easily bring to fruition.  It's difficult and involves a great deal of patience, skill and knowledge.  I cannot stress how important it is to work with a Realtor who has completed a short sale.  Without prior experience, you may just be wasting your client's time. As a result, whether you are a buyer or a seller, here are some things to consider.
 

One must prove financial distress   If you're a homeowner considering listing your home as a short sale, you must prove "financial distress" -- that you are not able to make your mortgage payments or pay off the difference between the current value of your home and your mortgage amount.


Time IS NOT of the essence!   Unfortunately although the clock is ticking and the foreclosure process may be looming closer and closer, the approval time for a short sale is typically very slow in coming. It could take as little as 45 days or as long as 6 months. So, if this is something you are considering, begin the process early!


The process may not always be fair   Many lenders wait a minimum of 45 days to see how many offers come in and then work with the highest bidder, rather than negotiating each offer as it is received. This creates a very uneven playing field for a buyer.

Buyer beware   There are many things you should know when considering a short sale for purchase. Has the property been approved for short sale? Is there a second mortgage on the property with a different lender? Are there offers already on the table? Has a foreclosure date been established? And if you make an offer on one, don't start spending money on appraisals, inspections, etc. until you have been advised in writing from the lender that your offer has been received. Many lenders wait a minimum of 45 days to see how many offers come in and then work with the highest bidder, rather than negotiating each offer as it is received. This creates a very uneven playing field for a buyer.

Remember, there are people who really really care.  Together you and an experienced Realtor can find solutions that can resolve these issues.....just ask.



                                     Do You Know Who Your Realtor is Working For?

I’ll give you an example.  You fall in your favorite restaurant.  They accidentally spilled water on the floor and you went flying.  You retain an attorney thinking that the attorney will be representing you and your attorney begins to negotiate to recover appropriate damages for your pain and suffering.  You eventually settle on a financial amount thinking your attorney was “the best”.  How would you feel if you discovered that your attorney shared personal information about you with the insurance company and based on that information, made an offer.  When your attorney encouraged you to accept the offer you believed it was in your best interest to accept.  STOP!  How could this happen.    

 

When it comes to real estate, Florida is very clear as to who your Realtor truly represents.  Sounds obvious, but not so fast.  Florida law requires that your Realtor informs you of their status pertaining to their Brokerage Relationship, which has a direct effect upon their fiduciary responsibility when representing you.  The good news is that all you need to do is ask.  Florida law (Brokerage Relationship Disclosure Act) requires every Realtor to acknowledge the type of agency representation they offer their clients.  Florida law also requires that agency disclosure be made to all buyers and sellers of real estate at the point of first contact. The Brokerage Relationship Disclosure Act found in Section 475.2701 of the Florida Statutes requires all licensed Real Estate agents to disclose agency relationship prior to showing property, first meeting or prior to discussion of negotiations, price, terms, or conditions of a potential sale.  It would be my guess that you are looking for someone who solely represents you. But in reality, that may not be the case.  Fortunately there is no mystery in finding out the type of representation you will receive prior to committing yourself and your money.

 

In order for there to be no confusion, a real estate licensee must establish one of the four relationships, in a specific written disclosure that must be given to the customer on a form created by the legislature.  This disclosure must be agreed upon between the Realtor and the Buyer and/or Seller. A Realtor must also be fully aware of the duties that accompany each type of relationship and must act accordingly.  You cannot and should not assume that any Realtor represents you unless you agree to accept the affiliation of that Realtor knowing full well if they are solely representing you.

 

There are four (4) different types of Agency disclosures available.  A Transaction Broker provides LIMITED non-fiduciary representation to a buyer or seller in a real estate transaction.  This means that the Realtor is NOT responsible for maintaining exclusivity toward YOU and only represents the transaction.   Is that what you want? 

 

A Single Agent can represent either the buyer or a seller, but not both, in a real estate transaction and ONLY REPRESENTS THEIR CLIENT.  Obviously you want someone who is working solely for you.  That person will be your ally when the time comes to negotiate on your behalf, whether you are a Buyer or Seller.  So ask…it doesn’t cost you anything to be smart.  We are Single Agents and only represent our clients.

 

A No Brokerage Relationship is self explanatory and a Transaction to Transaction Broker creates a second relationship when a Buyer works with a listing agent and represents both sides of the deal.  That gets sticky but that’s another subject for my BLOG.