Q: Selling property in Maryland. Contract states buyer pays all settlement fees. does seller have to pay any?
Settlement company is saying that seller fees have to be paid by seller despite contract stating "buyer agrees to pay all settlement costs and charges, including, but not limited to..."
Can the settlement company do this or is there a law that states that sellers are required to pay certain closing costs despite what is in the contract and signed by all parties?
A:
The contract dictates who pays the closing costs and settlement fees and the title company should follow those instructions. Note that in most cases the Seller will pay the cost of the deed preparation and the cost of recording the release for any mortgage, even if the Buyer will pay the settlement fee and other settlement costs.
Unfortunately it seems increasingly common for some title companies to slip a few extra hundred onto a party who is not obliged to pay settlement fees under the contract. If the contract says that the buyer pays the settlement costs, that should be that. There is no law that changes the contract terms.
Setting aside a settlement fee, it is reasonable and customary for a Seller to pay whatever it might cost to wire funds to the seller's mortgage company and/or to record a release of the seller's mortgage, as well as to pay for deed prep. A well-written contract will usually separate those costs from the "settlement fee".
While not legal advice I hope that this helps.
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.
