Legal Question in Real Estate Law in Maryland
Seller Settlement Costs
Does Maryland law require certain seller charges, or do the real estate brokers have their own "requirements"? We have received an Estimated Settlement Costs form from our realtor, and some of the charges seem ridiculous,ie: Recordation/Transfer Taxes;Lender Fees; Home Owner's Warranty and Misc. Fees (not itemized). The dollar amounts for these categories seem excessive ($355 for a warranty?!). What can we negotiate on? At this point, we'll have to bring money to the settlement table. We don't expect a profit, but we shouldn't be expected to take a loss!
What exactly are we required by law to be accountable for? Thank you.
1 Answer from Attorneys
Re: Seller Settlement Costs
It depends on the terms of the contract. The seller is always liable for the seller's share of the recordation and transfer taxes. If your contract promised a warranty, then you have to provide one (the cost sounds about right). The lender fees include any fees owed to your existing lender and any fees that you agreed to pay for your buyer. Misc. fees are generally pass throughs such as termite inspection, courier charges, etc. This is an estimate. They will be itemized on the HUD-1 at settlement.
The time to negotiate these things is before signing the sales contract, not now.
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