Largest Closing Costs Typically Paid by Sellers in New Mexico
Closing costs in New Mexico typically range from 2% to 5% of the property’s sale price. These encompass various expenses associated with finalizing the sale, including transfer taxes (if applicable), title insurance, recording fees, and attorney fees.
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Transfer Tax: The transfer tax, also known as the conveyance tax or deed tax, is a fee imposed by local jurisdictions on the transfer of real estate ownership. The transfer tax rate in New Mexico varies depending on the county. For instance, in Bernalillo County, the transfer tax rate is 1.75%, while in Santa Fe County, the transfer tax rate is 1.35%. In most cases, the transfer tax is paid by the buyer. However, the buyer and the seller can negotiate who pays the transfer tax in the contract of sale.
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Title Insurance: Title insurance safeguards both the buyer and the seller from financial losses arising from title defects. These defects include errors or issues with the property’s legal ownership, such as forged documents, undisclosed heirs, or unrecorded liens. Title insurance for sellers in New Mexico typically costs between $300 and $400.
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Recording Fees: Recording fees are paid to the county recorder’s office for recording documents related to the sale of the property, such as the deed transfer. Recording fees for sellers in New Mexico typically range from $20 to $35.
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Attorney Fees (if using an attorney): While not mandatory, consulting with a real estate attorney is highly recommended for complex transactions involving mortgages, title issues, or multiple owners. Attorney fees for sellers in New Mexico typically range from $500 to $1,500.
Please note that these are just averages, and your actual closing costs may vary depending on several factors. It is best to consult with an experienced real estate attorney or title company to get a more accurate estimate of your closing costs.