For a typical real estate transaction in the state of Ohio, sellers can expect to pay the following closing costs. Of course each every deal is different, but these are the standard fees. It’s quite popular right now for first time buyers to ask for help with their closing cost as well. These credits aren’t addressed her, but if they ask for help it’s usually in the form of a percentage of the sale price. 3% is common in most cases.
Title Exam: Fee charged for review of all recorded documents affecting the subject property to determine the present condition of title. This includes but is not limited to: liens, encumbrances and property tax status.
County Transfer Tax: Tax imposed on the transfer of real property in the State of Ohio (also known as conveyance fee). Rate of taxation determined by County.
Escrow Fee: Fee charged by a disinterested third-party (usually with title or mortgage company) for ensuring that all documents and necessary payoff information is gathered and the real estate contract obligations, dates, etc. are fulfilled. The escrow officer also receives funds, coordinates signing of documents by all parties, advises county when to record the new deed and disburses payment to all parties to clear title for new homeowner. The new deed is filed and if applicable, the mortgage documents and funds are disbursed.
Hold Signature: Fee charged for insuring that all liens and encumbrances have been released from the prior owner in order to issue a clear title policy. Fee is $15 per lien to be released (Example: If Seller has a first and second mortgage the fee would be $30.00).
Shipping and Handling: Fee charged for courier services and/or overnight mailing associated with the function of escrow department.
Update Service Fee: Fee charged for updating the title exam.
Deed preparation: Fee charged for preparation of deed.
Tax Proration: The amount calculated by escrow that seller needs to credit buyer for unpaid taxes. Real taxes in Ohio Counties are assessed six months in arrears.
Title Insurance: Fee charged (customarily half of premium) for insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrances.
Real Estate Commission: Commission charged by real estate company for services rendered.
Optional Closing Protection Coverage: Fee charged for coverage that indemnifies the seller against the loss of settlement funds resulting from any of the following acts of the Licensed Agent or anyone acting on behalf of the Licensed Agent, subject to certain conditions and exclusions specified in the Closing Protection Coverage Form:
(1) Theft, misappropriation, fraud, or any other failure to properly disburse settlement, closing or escrow funds; and
(2) Failure to comply with any applicable written closing instructions, when agreed to by the Licensed Agent.
City of Cleveland Disclosure: Fee charged for transferring 1 – 4 family dwellings in the City of Cleveland. Mortgage Document Preparation: Fee charged by lender to prepare mortgage note and necessary closing documents for purchaser. Required that seller pays on FHA and VA loans.
Tax service fee: Fee charged by lender for setting up purchaser’s impound account for payment of real estate taxes to county. Required that seller pays on FHA and VA loans.
Termite Inspection: Fee charged by pest inspection company for determining if subject property has the presence of wood-boring insects. Required that seller pays on VA loans.
Commitment to Insure: Fee charged for preparation of document showing vested title, property taxes, encumbrances and all conditions that need to be met prior to issuing a clear title policy. Required that seller pays on FHA loans.
Special Tax Search: Fee charged for searching of county records for special assessments added to property
taxes. Required that seller pays on FHA and VA loans.