Recording Costs Alert:
Be aware that recording costs for Deeds are based on the purchase price or the actual value of the property, whichever is greater. With the current market conditions as they are, the purchase price of real estate is sometimes much lower than the locality’s real estate tax assessment. As a result, the actual cost to record the Deed may be much higher than the good faith estimate. (A recent example was a $380,000 county-appraised property which sold for $180,000 from the REO Bank. The estimated recording cost was $632.00, while the actual cost the Buyers had to pay was $1,300.00).
To avoid this surprise warn your Buyer about this possibility. Also, since there is no definition as to what “actual value of the property” means, some Clerk’s offices will base the recording cost on the bank’s new real estate appraisal. Each Clerk’s office has a different rule, so there is no one-size-fits-all rule. Please contact me at 434.951.0858 if you have any questions.
No comments:
Post a Comment