Buying your new home and the Closing process
What happens and what should you expect when buying a new home? Although things can vary from closing to closing, it is a similar process for most closings.

Based on the area you are looking to move to in Florida, the area can dictate to a degree which party may be paying and obtaining the title company services needed to facilitate your closing. It is customary that if you are paying for the Owner’s Title Policy you are most likely the party choosing the title company who will provide the policy and closing services. Your contract will state the responsible party who will pay based on what is agreed to by the Buyer and Seller.

If you are buying a new home with the assistance of a Real Estate professional, the Real Estate professional will assist you throughout the process. The services of a title company will still be required for closing and transfer of title.

The title company will conduct a public records search of the property and a search on owners in the chain of title to see what may be against the property and to be sure title has been effectively transferred each time ownership has transferred. Our goal is to transfer the property to you, free and clear of any prior encumbrances or issues against the property. We produce a report called a “Commitment” which will be provided to your Real Estate professional to share with you or to you directly, if you do don’t have real estate representation, which explains any issues that will need to be addressed.

Once we know we can transfer title free and clear and all parties are ready, we can close to the contract between the Buyer and Seller. If you are getting a new loan, we will coordinate closing the loan package at the time of closing. We will prepare the Settlement Statement reflecting all the closing fees that need to be collected to complete the transaction. We will set the closing time with the agreement of all parties and meet with everyone to explain the documentation, have all documents executed and notarized where needed and will collect and disburse funds as needed.

As the “third party”, we represent all parties and our responsibility is to be sure everyone’s interest and needs are accounted for while creating a free and clear title and closing to the terms of the contract.

After we have recorded all required documents, we will issue the new “Owner’s Title Policy” to you, the new Buyer, and any “Loan Policy” to the lender that may be required depending on the financing of the transaction.

Who normally pays and why.

Title Fees
It is customary in the Central Florida area that the Seller normally pay for the “Owner’s Title Policy” in order to present the Buyer with evidence of a free and clear title as required by the contract between Buyer and Seller. This will include a Search and Exam fee.

The Buyer usually pays for any title costs associated with acquiring a Loan Policy required when financing the purchase. Other areas of Florida the Buyer may be the responsible party to acquire and pay for the title insurance and to choose a title/ closing company.

Recording Fees
In the Central Florida area the Buyer normally pays for the Documentary Stamps collected on the Mortgage (if any) which is currently

• .35 cents times the loan amount rounded to the next $100.00 increment along with Intangible Taxes also based on the loan amount times .002.
  
  
• Example $100,000 loan amount - Documentary Stamps 100,000.00 x .35 = $350.00; Intangible Tax $100,000.00 x .002 = $200.00.
  
  
• The fee to record the document itself is based on the number of pages to be recorded and is $10.00 for the 1st page and $8.50 for each additional page. Example 16 page mortgage will be $137.50. The Warranty Deed to transfer title will be recorded and will also be based on the number of pages the document consists of (usually 1 page ($10.00) unless there is an attachment).
  
  
• The fees are collected at closing and paid to the recorder’s office at the time of recording. Palm State Title will collect fees from the appropriate party based on the Contract agreed to by all parties.

Other Fees
There are various other fees that may be required based on the type of closing and if you get new financing or not. Examples of other costs would be closing fees; loan title policy and endrsement fees; courier fees; scanning and storage fees, and any lender required fees for your new loan (your Loan Officer will do a Good Faith Estimate for you).Remember, this is what is customary unless you and the Buyer agree to other terms and are detailed in the contract between Buyer and Seller.

Sound confusing?
If so, then you will want to call a reliable, experienced and knowledgeable title group, “Palm State Title”, to help you through all stages of closing and to answer all your questions. We will be there for you, you can be assured! Call for your quote.