Jan 20, 2010

Tip 50-2009: New GFE and Tax Map/Parcel Number

One of the new requirements with the new GFE (Good Faith Estimate) is that the lender has to estimate the recording costs of the Deed and Deed of Trust without any variance from the actual recording taxes charged by the local Clerk’s Office.

Most jurisdictions now charge recording costs on the higher of the contract price or local real estate tax assessment. Accordingly, the lender in estimating the recording costs can not just rely on the contract price but must compare it with the actual real estate tax assessment (which in a lot of cases is higher than the contract price).

Accordingly, it will be extremely helpful if all realtors include the accurate Tax Map and Parcel Number in the contract (The correct address and legal names of seller would also be helpful). With this information the lender can check with the local tax assessor as to which value to use for the GFE. Any mistake in this GFE calculation could either cost the lender money or delay the closing.

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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