Mom sold her home & there was no mortgage on the property. At the closing the my mother was charged 200 for a title closer, 150 for deed prep,

Asked by Looney-one, Shirley, NY Wed Dec 29, 2010

What 4? Mom Sold home to niece. Niece took out mortgage with mortgage broker. When check was handed to my mom automatically 838 was taken out. We were told that 488 was for transfer tax which we understood and the other 350 was for title closer & deed preparation. Title closers bill was $200 so I am assuming the other 150 was for deed preparation. She is 72 and I feel they are taking advantage of her. Her niece was also charge $200 for title closer. Is it normal for seller to pay a title closer. There was no mortgage to pick up. Shouldn't these fees be the buyers responsibility? I have called the BBB to find answers, The banking industry # who only helps the buyer & then was transferred to a pro bono lawyer. It is only 350 so its not worth getting a lawyer. 1 other note. Before the closing she inquired if she would need a lawyer and she was told no by the mortgage company. It was only signing the deed over. Closing was 11/29/10. Please help me find answer. Thank you!

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Scott Godzyk, Agent, Manchester, NH
Wed Dec 29, 2010
Typically the only legal charge to teh seller at closing is the deed preperation. There may have been something that the closing compnay needed to do on top of the deed if there was a trust, or liien on the house. At this point simply call and ask what the charges were for. If they are not valid ask for a refund. if they will not tell them you are filing a complaint gaianst them and then file one.
Web Reference:  http://www.ScottSellsNh.com
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Anna M Brocco, Agent, Williston Park, NY
Wed Dec 29, 2010
Not sure why you didn't seek an attorney of your own, regardless...generally the seller pays their own attorney, transfer taxes, realty fees, and whatever else may have negotiated beforehand, if anything...was the $350 negotiated otherwise....you may still wish to consult with an attorney who specializes in real estate--most professionals do offer a free consultation.
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Gail Gladsto…, Agent, 11743, NY
Wed Dec 29, 2010
Seller typically pays transfer tax, their attorney and their Realtors and NOTHING else unless pre-agreed.
Web Reference:  http://GailGladstone.com
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, ,
Wed Dec 29, 2010
Because this was a family sale, is there a chance that you did not have an attorney? I am assuming that either your attorney didn't pay attention, or you were taken advantage of. Normally, in NY, your attorney would prepare the contract of sale, and prepare the deed to bring to closing, along with the other paperwork that needs to be filed, (TP-584 form, for example) You neice's attorney, assuming she had one, would have done this.
You are correct, you should not have paid a fee to the title closer, your neice should have. The title closer
is responsible for filing all documents, and making sure your mortgage is paid off, however you didn't have a mortgage, and the deed that needed to be filed is for your neice. I would call the title company and ask about a refund. If you did not have a lawyer prepare a deed, then the charge for that would be OK, although on the high side.
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Donna Lomenzo, Agent, Wading River, NY
Wed Dec 29, 2010
Your mom should have had her own attorney. It is normal for title and deed fee's to be paid at closing by both seller and buyer. In NY there is a transfer tax that you mom was responsible to pay ($4.00 for every $1,000). You can call a real estate attorney and ask the question. Good luck!
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Jillian Lenn…, , Baltimore, MD
Wed Dec 29, 2010
If you do have unresolved issues, it would be best to involve a lawyer to review the documents. Each closing is different, and although it's not necessary to have a lawyer to either review the documents or be present at closing, many people choose either of these options to protect themselves and answer any questions their clients have. It might be worth it to hire a lawyer to review the papers- even for peace of mind. Good luck to you!
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Jeanette Igoe, Agent, Estero, FL
Wed Dec 29, 2010
Thanks for your inquiry. Title companies charge based on the amount of the sale price, it may be that the buyer and seller split the fee. Deed preparation also includes recording of the deed, which is normally a small County fee and the time the Title company takes to prepare it. Here in Florida, it depends on the County you are in as to who pays for the Title Policy. The Buyer and Seller both have closing costs, but usually only one pays the Title Policy and that's negotiated on the contract.
If your niece took out a mortgage, it also had to be recorded and I am sure they included that in the costs.
The Title and Deed is a time consuming project for the company issuing it, to insure you have a clear title and the deed is in the proper name, mortgage recorded, etc.
I hope that answers your question.
Web Reference:  http://www.JeanetteIgoe.com
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Shirley Sofo…, , Indianapolis, IN
Wed Dec 29, 2010
Does the purchase agreement state the closing fee is split between the buyer and seller: Did your Mom agree to any other selling expenses on the purchase agreement. Did you have a Realtor. Ask them . They should be able to explain the difference. It may be prorated taxes. It may be a discount fee that the lender charged to the seller But all of it should have been spelled out on the purchase agreement. That is where you need to start. If you need more help, any Realtor should be able to tell you in just a few minutes. The clues will be in the purchase agreement, the title company goes by the purchase agreement in all transactions. If you want more hel[p, I will look it over for you and give you my thoughts. Shirley Soforic, 317-507-2005 or ssoforic@comcast.net or fax 317-524-0649
0 votes
Phil Rotondo, Agent, Melbourne, FL
Wed Dec 29, 2010
Good Morning One;
It is usually 'customary" that closing costs are paid by either the seller or the buyer depending on the area. For example, in Brevard County, Fl. it is customary that the seller pays normal closing costs (title, doc.stamps, title prep, title company fees); and in other areas the opposite.
Nevertheless the customary charges are not carved in stone.
The contract for sale and purchase of the property should stipulate who pays for the closing costs. So please check the contract.
Web Reference:  http://www.321property.com
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Tim Moore, Agent, Kitty Hawk, NC
Wed Dec 29, 2010
The $200 for title closer is the fee the title company charged her for doing the paperwork to sell the house.

The $150 for deed preparation goes to an attorney who filled out and made the new deed transferring the ownership from your mom to the niece. All very necessary and priced about right. There is no need to call the BBB as this is very normal, selling a house is not like selling a bicycle.
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