Costs to be Expected at Closing
Mortgage Payoff: Any mortgages or equity lines against the home will be paid off at closing and there will be fedex charges or wire fees for submission of each payoff.
Real Estate Commissions:
The commission due to the real estate brokers is paid from the sale proceeds. The seller pays both buyer’s and seller’s brokers.
Realty Transfer Fee:
This item is a surprise to many sellers. The State of New Jersey takes a transfer fee out of your sale proceeds. The fee is calculated based on the sale price. This is a significant item, so you may wish to calculate your fee at this site. Also, ask if you qualify for a discount on the fee: http://www.titleinsurancenj.com/sites/0/module/transfertaxcalculator/njtransfertaxcalculator.aspx
Legal Charges
Legal fees and expenses are shown on the settlement statement and paid at closing.
Recording fees
The County charges a fee to record a “discharge” for any outstanding mortgages. You can expect a charge of $75 to $100 per mortgage.
Property Taxes and Other Adjustments:
All municipal charges will be adjusted at closing. This will include property taxes, municipal sewer, municipal water and municipal garbage pickup, if applicable. If your home is heated by oil you are entitled to reimbursement for oil in the tank. You should arrange for your oil company to measure the amount of oil in the tank shortly before closing.
