Seller's Approximate Closing Costs
Click on linked terms to see definitions below.
| 1. Legal Costs |
$900 to $1,200 |
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(varies, depending on attorney and complexity of transaction) |
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| 2. Liens |
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a. Mortgage |
____________ |
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b. Mortgage cancellation fee |
$40 to $75 |
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c. Other liens |
____________ |
| 3. Realty Transfer Tax |
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fee determined by selling price of property |
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| 4. Adjustments |
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either a credit or charge to adjust for payments made prior to or beyond the closing date |
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a. tax |
____________ |
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b. water / sewer |
____________ |
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c. oil in tank |
____________ |
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d. Home Owner's Assoc. Fees |
____________ |
| 5. Certificate of Occupancy (if applicable) |
$40 to $50 |
| 6. Smoke detector certificate |
$25 to $50 |
| 7. Carbon monoxide certificate |
$25 to &75 |
| 8. Real estate commission |
____________ |
| 9. NJ: Non-resident income tax |
Estimated taxes are paid when deed is recorded. Minimum amount is 2% of sales price. |
*These figures are general guidelines to aid buyers in calculating their closing costs. The figures are based on estimates of New Jersey and New York fees and are subject to errors and omissions and change without prior notice. 1/2006
TERMS
This fee is a tax paid by the Seller to the State of New Jersey, payable at closing and remitted upon recording of the deed by Buyer’s attorney. The purchase price is applied to a formula. The formula for purchases in excess of $350,000 is as follows:
$2.90 per $500 of consideration up to $150,000
$4.25 per $500 over $150,000 and up to $200,000
$4.80 per $500 over $200,000 and up to $550,000
$5.30 per $500 over $550,000 and up to $850,000
$5.80 per $500 over $850,000 and up to $1,000,000
$6.05 per $500 of consideration in excess of $1,000,000
A reduced fee is available under certain conditions if at least one of the Sellers is over the age of 62. Disability or blindness may also qualify a Seller for a reduced fee.
If you have any type of mortgage on your home (first mortgage, home equity, credit line, etc.), each mortgage must be paid off at closing from the closing proceeds. The Buyer’s attorney charges approximately $100.00 per mortgage to obtain payoff information, remit a payoff check, and cancel the mortgage document of record with the County Clerk's Office.
As agreed to per the listing agreement between the Seller and Real Estate Broker, payable at closing.
For homes serviced by private wells, the State of New Jersey requires a water quality test by a state approved company. In most cases, the Seller is responsible to pay for such tests.
Real estate taxes are apportioned to the day of closing. If applicable, sewer charges are also apportioned to the day of closing. (Credit or debit to Seller at closing depending on status of payment by Seller).
Arrangements for a final water reading should be made approximately two weeks prior to closing. Final water charges are often a lien on the property and can either be paid from Seller’s proceeds at closing or Seller can produce a final water bill at closing, marked “paid”.
All municipalities require a Seller to obtain a smoke detector certification from the municipal fire inspector on all re-sale transactions, which includes an inspection for the presence of carbon monoxide detectors and fire extinguishers. In addition, certain municipalities require a Seller to obtain a certificate of occupancy (CO) or a continued certificate of occupancy (CCO) from the municipal building inspector on re-sale transactions. Arrangements for these inspections should be made approximately one month prior to closing. Any charges imposed by the municipality in obtaining any of the above certificates are the Seller’s responsibility.
If you have any known judgment, including child support arrearages you should advise your attorney. Open judgments against a Seller must be paid at closing and cancelled of record. Buyer’s attorney may charge the Seller to cancel judgments.
Approximate charge - $100 per judgment
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*The sums quoted herein are estimates only and are subject to change.
Terms authored by Landel, Bernstein & Kalosieh, LLP
801 Franklin Ave.
Franklin Lakes, NJ 07417
phone (201) 891-6955
fax (201) 891-7420
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