Legal Question in Real Estate Law in Virginia

Breakdown of closing costs

Hi,

We are selling our home to buyer (we found this buyer; we did not use realtor services). We also referred the buyer to a mortgage broker that we knew of. We agreed to pay closing costs.

The sale price of our house is $80,000. The mortgage broker told us that closing costs are $6,000. When we questioned that amount, he now states that closing costs are $4,800. We have asked for a breakdown (itemized) of the closing costs and what lender that the mortgage broker is using since we are the ones paying the closing costs. The mortgage broker is refusing to give us the breakdown or lender information, stating that it's confidential because we are not the buyer. Are we supposed to pay closing costs without anyone telling us what the breakdown of the $4800 is? Aren't we entitled to know this information?

In addition, we have been with the buyer every step of the way during this process and she has been forthcoming. I just don't want to keep bothering her about these things. She is new to the home-buying process and I don't want to frustrate her. But, I would really like to know where the $4800 - $6000 is going exactly. I don't exactly trust this broker.

Thanks and have a blessed day.


Asked on 8/03/06, 6:46 pm

2 Answers from Attorneys
Robert Strupp Robert J. Strupp,Attorney at Law, PLC

Re: Breakdown of closing costs

The first question is what did you and buyer mean by "closing costs"? If you meant the recordation/transfer taxes,plus title and settlement costs, the lender/broker really have nothing to do with determining these. If you agreed to pay loan costs, that might be different. In any case, these costs would need o show up on the HUD-1 settlement sheet, so the "confidentiality" comment seems odd. You might want to have an attorney review the documents.

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Robert J. Strupp

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Answered on 8/03/06, 7:46 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Breakdown of closing costs

Tell your buyer to request an itemized breakdown of the broker's closing costs even though you may not "want to keep bothering her about these things". Some of these things may be important enough that they may necessarily require that she be bothered.

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Answered on 8/03/06, 7:53 pm


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