On October 3, 2015, the Consumer Financial Protection Bureau’s (CFPB) new
mortgage disclosure law, also known as the TRID went into effect. TRID will
help consumers be more informed regarding the closing cost.
things you should know about the new law:
1. Initial Good Faith Estimate (GFE) and Truth in Lending disclosure (TIL)
are now combined into one new form called the Loan Estimate (LE).
2. Instead of the old forms such as the HUD-1 and Final TIL we now have the
Closing Disclosure (CD).
Whether you are buying or selling a home, your team of expert advisers
should include a real estate closing attorney. Real estate closings are complicated matters and require a thorough knowledge of the law.
With a decision as serious as buying and selling real estate, it is
important that you are guided throughout every step of the
closing process by an experienced and knowledgeable real estate lawyer.
The purchase of a home
is often the single largest financial transaction you will
ever make in your life.
Purchasing a home involves more out-of-pocket expense than just the down payment. There are also
closing costs to pay for items such as title policies, recording fees,
inspections and fees that a lender charges for obtaining a mortgage. The following schedule is an estimate of the closing costs that a buyer can typically expect to pay at closing.
PURCHASER’S REAL ESTATE CLOSING COSTS:
Mansion Tax 1% of purchase price when $1,000,000 or over
The following schedule shows estimated closing costs
when selling real estate. These costs are just estimates
and should be reviewed with your attorney.
SELLER’S REAL ESTATE CLOSING COSTS:
Property Transfer Tax 0.4% (.004) of purchase price
NYC Real Property Transfer Tax
(Usually paid by Seller,
except on new contruction sale)
• Sales under $500,000 1% of purchase price