Question Details

Starlightdre…, Home Seller in New York

In a closing can the seller get stuck paying for closing for the buyer and himself?

Asked by Starlightdreamer44@gmail.com, New York Fri Jan 18, 2013

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5
I can think of only two ways that that can happen:
Either it is a CON, and you are the victim of Fraud, or,
You did not read your Contract before you signed it.
Which?
1 vote Thank Flag Link Fri Jan 18, 2013
The lawyer didn't explain the contract and told us it was a standard contract and told us to sign it. Do you think we could sue the lawyer for not explaining the contract, because we got hit with extra fees like the closing fees.
Flag Sat Jan 19, 2013
Depends on the contract. Whatever was negotiated and written in the contract is binding on both buyers and sellers.

Having said that, I had instances when the buyer had problems coming up with all the cash to close and the seller agreed to pay part of the closing costs. You could say that the seller ended up stuck with the closing costs, but that was his decision.

And I can count in one hand the number of times I saw that happening.

Good luck!

Jose Dias, REALTOR | (623) 418-5700 | Jose@MyFirstHouseAZ.com | http://www.MyFirstHouseAZ.com
0 votes Thank Flag Link Fri Jan 18, 2013
Any prepaids or closing costs that a seller pays for a buyer at closing are all negotiated upfront before the contract is signed and agreed to by the seller and buyer. If a buyer asks for closing costs and you were able to cover them, you can always negotiate for that amount to be added to the sales price if you feel your home would still appraise for a higher sales price. Unfortunately, for sellers these days this is a very common expectation and request of buyers to get help with their closing costs from the seller.
0 votes Thank Flag Link Fri Jan 18, 2013
Not sure what you're asking when you say "get stuck". Are you asking if you can ask the seller to pay for buyer's closing costs? This is all part of the negotiation process. I don't see it as the seller getting stuck paying anything. Oftentimes to account for closing costs paid by seller, they will ask for a higher purchase price. It all evens out.
0 votes Thank Flag Link Fri Jan 18, 2013
The seller can pay up to 6% of the buyers costs to close in a conventional loan where the buyer is putting down at least 10%. FHA and VA loans have different parameters but the seller can assist with costs to close on these loans as well. What the seller does pay is negotiable. If the seller is offering FHA or VA financing, then some costs will be incurred by the seller that the buyer is not allowed to pay per the type of loan. Bottom line is that the seller can decide what type of financing to offer before the home is on put on the market. No surprises necessary.
0 votes Thank Flag Link Fri Jan 18, 2013
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