Posted by B.L. Renfrow on May 31, 1999 at 19:47:12:
I was talking with a Canadian coworker the other day and when the conversation turned to the property she just bought in Ontario, I could hardly believe the attorney charges she paid, which apparently are quite typical for Ontario. Made me feel good about living in NY, the taxation capital of the US!
I have no suggestions how you could get around those seemingly exhorbitant charges, but I can certainly appreciate how it could put a damper on investment there.
Here in NY closings are handled by attorneys as well, not title companies. Mine charges about $300 to represent me as seller, $425 if I’m the buyer, or $550 for both. That includes title search and examination, preparation and review of all documents, filing all the stuff at the courthouse, use of his office space for the actual closing, etc.
Closing costs, in addition to the attorney fees, would include such things as transfer tax (which is significant here), mortgage tax (if applicable), filing fees, deed recording, tax record search as well as things like survey, title insurance and inspection fee. In addition, if one is obtaining an institutional mortgage loan, you can add a committment fee, processing fee and PMI (with certain loans). So while it is not a set percentage, closing costs do obviously depend to some extent on the purchase price. I assume the costs are less in those states where closings are handled by title companies and escrow agents and every aspect of the transaction is not taxed to death.
Brian (NY)
closing cost - Posted by Wayne
Posted by Wayne on May 31, 1999 at 16:23:03:
This is my first attempt at posting a message, so here goes. Here in Canada, most if not all Real Estate deals are handled by lawyers… Their fees can be significant, which would erode any potential profit. Does anyone with Canadian experience, have any tricks or methods to get around these cost? Also, for my interest, what type of closing cost do U.S. residents have when they close Real Estate deals. Is it a set percentage or whatever? I’ve notice that you seem to use title companies for checking ownership and titles. Is this service very costly. Thanks for any help.
Title companies and attorneys - Posted by SCook85
Posted by SCook85 on May 31, 1999 at 19:58:59:
There seems to be a misconception amongst many on this site when it comes to Title Companies and Settlement attorneys. I always refer to the person I use as my settlement attorney and everyone asks “Why don’t you use a title company?”
All title companies have an attorney in house that reviews all the documents. They are settlement attorneys themselves who just do title work. My “settlement attorney” deals with many other matters other then real estate therefore I don’t refer to him as a title company. He is my attorney.
Now to answer your question, yes we have rather substantial closing costs here in the United States as well. These costs vary from State to State, sometimes County to County. You just have to figure these up as a cost of doing business. If the costs eat up all of your profits then the deals that you are looking at are probably not very good ones.
Hope this helps.
Steve