Plymouth, IN asked in Real Estate Law for Indiana

Q: when buying a house for cash what fees are there

Related Topics:
1 Lawyer Answer
Michael R. Smith
Michael R. Smith
PREMIUM
Answered
  • Indianapolis, IN
  • Licensed in Indiana

A: Even when my clients are buying a house for cash, I advise them to use a closing or settlement agent to handle the closing to make sure everything is done correctly, and I also advise them to obtain an owner's title insurance policy, which will likely require a survey to be performed. The usual practice is to have the title company serve as the closing or settlement agent, in addition to obtaining the title policy from an underwriter, and they will likely prepare the deed, sales disclosure form, and any affidavits or other necessary documents. Depending on the situation, you may also want to have a home inspector go through the house. So with all that -- there's the cost of the home inspection, the cost of title work and survey, the premium for the owner's title polcy, and the fee for the closing services (probably with separate document preparation fees for the deed, etc.). In addition, there will be a modest fee owed to the county recorder for recording the deed and a filing fee to the county auditor or assessor for the sales disclosure form. In addition, depending on how you negotiate the tax payments and what time of the year the sale happens, the buyer may need to reimburse the seller for taxes already paid or the seller may need to pay the buyer for taxes not yet paid, but those aren't really "fees." I suppose the fee for recording the deed and the fee for filing the sales disclosure form are the only ones that you simply cannot avoid by accepting more risk and doing all the work yourself, but again I'd never advise my own clients to do that. Although some of those fees are customarily paid for by the buyer and some by the seller, who pays for what is really all negotiable.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.