Closing costs encompass various fees and charges incurred when finalizing a vacant land purchase. These can include:
- Title search and insurance: Verifying ownership and ensuring the land is free of liens or encumbrances.
- Recording fees: Registering the deed transfer with the local government.
- Attorney fees: Legal representation for reviewing contracts and ensuring a smooth transaction. (Optional)
- Loan origination fees: Charges associated with processing a loan for the land purchase (if applicable).
- Property taxes: Prorated amount of property taxes owed by the seller for the current year.
- Survey fees: Obtaining a land survey to determine property boundaries (may be required).
- Transfer taxes: Government taxes levied on the sale of real estate (varies by location).
- Discount points: Optional upfront payment to reduce the mortgage interest rate (if applicable).