MarkBooth
The South Shore's Legal Expert!
Every Sunday at 10:30 AM on the WATD 95.9 FM broadcast of “So what about that law” a co host expert in one of the areas of: Insurance, ( Lois Drukman ), Mortgages, ( Stacey Jordan ), Residential Real Estate, ( Andrea Campbell ) , your Finances, ( Joshua Singer ) or Taxes ( CPA John Topham ), join me in discussions on one of these topics that affect all of us ... check it out …All of their contact information is here on the Broadcast Page. Each Sunday's show is streaming live on http://www.959watd.com …and the Podcast posted on this website, WATD website, and Facebook on Tuesdays, and don’t forget to check the show out on Twitter, iTunes and Soundcloud…we hope you find each show entertaining and enlightening.

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Buying Or Selling A Home FAQs

  1. WE JUST SIGNED AN OFFER; WHEN CAN THE MOVERS COME?
    A.  Generally when the buyer is getting an institutional first mortgage, the closing process should take eight to ten weeks (assuming there are no title problems). I would advise holding off on booking the movers for now, however, and wait to see if your transaction is indeed an average deal. The movers probably will not need much lead time, and you do not want to commit to a date you cannot honor.

  2. DOESN’T THE SELLING BROKER REPRESENT ME AS A BUYER?
    A. No. All brokers represent the seller unless they specifically are engaged as a “buyer’s broker.” You should have received a notice explaining this when you first began dealing with the broker in question.

  3. WHY CAN’T I TAKE THE CHANDELIER AND BUILT-IN BOOKCASES?
    A. They are fixtures and attached to the property in such a way as to make their removal impossible without altering the property. If you wish to take them, they must be deleted from the purchase and sale agreement’s description of the premises to be sold, and any structural changes made must be remedied (i.e., the light fixture must be replaced with another, and the wall behind the bookcases repaired).

  4. WHY CAN’T WE MOVE IN EARLY/STAY ON AFTER THE CLOSING?
    A. Because you do not own it yet/any more. If coordinating moving dates is a real problem, we can try to arrange for a use and occupancy agreement–but it should be in writing and address issues such as responsibility to insure, assumption of liability, possibility of damage to the property and a contingency in the event that the owner has to evict in order to regain possession.

  5. WHO GETS THE INTEREST ON THE DEPOSIT?
    A. That is a matter for negotiation at the purchase and sale agreement stage. While both parties feel the money is theirs pending the closing (and both have good arguments to support such statements: the seller’s being that the money is part of the purchase price and is held in escrow only as a matter of custom; the buyer’s being that the money is held in escrow until the seller performs by delivering a deed), I suggest that we split the interest in half.

  6. WHAT WILL OUR CLOSING COSTS BE?
    A. It depends on the loan program offered by the lender. Even if you choose a no-point program, you will pay various fees including an application/credit report/appraisal fee of approximately $300, some of which may be prepaid; one year’s mortgage insurance (if applicable); and interest in advance for the balance of the month is which you close. In addition, the lender will collect the prepaid escrows for taxes (which when “netted out” against the tax adjustments will equal about three months’ worth), hazard insurance (usually for two months, based on the actual premium) and mortgage insurance if applicable (for two months, based on the actual premium). Depending on the lender and the program, there may also be charges for document preparation (usually $150-$300), a tax service fee (usually $70-$100), courier fees ($30-$50) and various miscellaneous charges ($76–assignment; $23–certified copies). When you are purchasing a home, be prepared to pay one year of homeowner insurance up front before the closing. The bank attorney will collect and disburse for recording fees ($302); title abstract ($150); municipal lien certificate (up to $50); plot plan ($150); title insurance; and the bank attorney’s fee. Please Note: All costs listed above are approximate.

  7. WHAT IS TITLE INSURANCE AND DO I NEED IT?
    A. It is a policy of insurance that protects the lender and, if purchased by the buyer, the owner of the property from claims against the title to the real estate. While attorneys must certify to buyers that the title to the property is good (if such certification is made to the lender), the owner will not be able to collect on such a certification if the attorney is gone or if the problem is one for which the attorney would be liable, such as a forged document in the chain of title. In such an instance, the insurance policy would cover where the attorney would not.

  8. WHAT ARE “POINTS”?
    A. Points are fees charged to bank customers for the use of money. Although charged in many kinds of loan transactions, they are most commonly thought of in connection with residential lending (that is also the only loan in which the amount of the fee is regulated by state law: they are capped at one percent if the loan is not to be sold in the secondary market and at two percent if the loan is intended for sale). A point is calculated at one percent of the loan amount; thus, on a $260,000 loan to purchase a $400,000 house, one point would equal $2,600; one and a half points would equal $3,900; and two points would equal $5,200. You may choose a “no-point” loan but the rate will be higher than a loan in which you pay points.