Arizona Closing Costs
Arizona Closing Costs – Buyers & Sellers Costs
Arizona Closing Costs are expenses related to the sale or re financing of a property. Arizona closing costs are paid in addition to the Tucson homes purchase price (for a buyer). Arizona closing costs will be deducted from the proceeds of the sale (for the seller).
Arizona Closing Costs may result from legal requirements. Others costs may be a matter of local custom and practice. The Tucson Home purchase contract will identify which party – buyer or seller – will pay which closing costs.
However, these can be negotiated as part of the Tucson homes purchase or selling process.
Every effort should be made to avoid disputes. The purchase contract should clearly define Arizona closing costs. The items included in “closing costs” and who is responsible for their payment should be established.
Typical Arizona real estate closing costs incurred by the Seller and Buyer in an ordinary real estate transaction are:
-Cost of clearing title
-Certificate of title
-Abstract, continuation, title insurance.
-Escrow fee (Share with Buyer)
-Interest in arrears on old loan
-Prepayment penalty on old loan
-Home Owner Association transfer fees
-Home Owner Association assessments
-Home Warranty Policy (Share w/ Buyer)
-New loan or loan assumption fees
-Deed and mortgage recording fees
-Escrow fee (Share w/Seller)
-Reimbursement to seller for prepaid taxes
-Appraisal and inspection fees
-Prepaid Interest on new loan
-Wood Infestation/Termite inspection
-Home Warranty Policy (Share w/Seller)
In addition to these Arizona closing costs, some costs are fixed at a specified amount or percentage regardless of the closing date, other expenses – i.e., real property taxes, prepaid insurance, interest on assumed obligations, etc – would be prorated between the seller and the buyer.
Arizona Closing Costs related expenses are directly related to property ownership and normally prorated as of the date on which title to the property passes. This makes the seller responsible for expenses for the period that they owned the property. A buyer will be responsible for expenses accruing from the date they take title.
In most cases, the buyer assumes the expense as of the closing day.
Please note, there are special considerations and limits on these expenses. Importantly, who will pay them. When VA or FHA financing is involved some costs are identified for the seller or buyer. Ask the realtor/real estate consultant representing you what these include.
As soon as a purchase offer has been accepted, your realtor/real estate consultant should provide you an “Estimated Cost Sheet”. A estimated cost sheet will identify the estimated Arizona closing costs for the buyer or seller.
A Final Closing Statement shows all closing and adjustment costs along with how any prepaid and unpaid expenses for the Buyer and Seller. The Final Closing Statement will be provided by the title company a few days prior to the Close Of Escrow.
Both Buyer or Seller need to understand their financial obligations are before signing any closing documents. Ask your realtor/real estate consultant for assistance or additional information to help you through this important step in the real estate transaction.
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