Closing costs for a cash land sale can vary depending on the specific agreement between you and the buyer. Here’s a breakdown of some common costs to consider:
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Title Fees: These fees cover the title search, title insurance, and other expenses related to ensuring a clear title for the land. In some cases, the buyer might cover these costs, but it’s not always guaranteed.
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Government Recording Fees: These fees are paid to the government to record the transfer of ownership of the land. The specific amount can vary depending on your location.
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Prorated Taxes: You might be responsible for any property taxes owed up to the closing date. The buyer will be responsible for the remaining taxes for the year.
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Attorney Fees (Optional): While not always necessary, consulting with a real estate attorney can be helpful to review the purchase agreement and protect your interests.
It’s important to inquire with the cash buyer upfront about their specific closing cost policy. Some cash buyers might cover certain closing costs as an incentive, while others might expect you to cover all associated expenses. Understanding these costs beforehand will help you determine the net proceeds you’ll receive from the sale.