Buying or selling your Maui home - understanding closing costs

By
Real Estate Agent with Hawai'i Life Real Estate Brokers HRE# 58089 - RS
https://activerain.com/droplet/4C8b

Buying or selling your Maui home - understanding closing costs

When it comes to a Maui real estate sale, buyers and sellers often want to know what are the costs involved.  Who pays for what?  What will the charges amount to?  Do I need to bring extra money to the table?  I always like to get an estimate from escrow to provide to my clients, way ahead of the closing date.  Once we know the sale price and other important details, this can be provided quickly. 

These are the customary closing costs which are handled and prorated during escrow.  There may be other costs which arise that will be agreed upon by both parties.
 

Charges to buyer if applicable  
  • 40% of the premium for standard coverage title insurance
  • cost of drafting mortgage and note or agreement of sale
      • look both ways

  • cost of obtaining Buyer's consents
  • all recording fees except documents to clear Seller's title
  • 50% of escrow fee
  • condo and association ownership transfer fees
  • FHA or VA discount points and any mortgage fees
Charges to seller if applicable  
  • 60% of the premium for standard coverage title insurance
  • cost of drafting of conveyance documents and bills of sale
  • cost of obtaining Seller's consents
  • mortgage pay off and release
  • 50% of escrow fee
  • seller's notary fee
  • cost of required staking or survey
  • recording fees to clear Seller's title
  • FHA or VA mandatory closing fees
  • conveyance tax
  • FIRPTA (federal withholding tax)
  • HARPTA (state withholding tax)

Property taxes are another item to show up on your closing statement.  As a seller you will probably get a prorated rebate on any prepaid property tax, unless you are in arrears, in which case you will get a charge on your closing statement.  As a buyer you will probably set up an escrow account to hold enough funds to pay your property taxes when they come due.  This is advisable when getting a mortgage as you won't have to come up with the whole amount when the bill arrives.  Buyers who are getting a mortgage will benefit from having these costs included into their note, but they will see a line item on the closing statement to reflect this.

A seller who is behind in their HOA dues will need to pay that off with proceeds from the sale, so don't be surprised when that comes back at you.

Typically the seller also pays for the TIR, the termite inspection report, and any recommended follow up treatment if there is evidence of live termites, though it can be negotiable. 

In any event, you will be in good hands with an experienced Realtor and escrow team to help you through the transaction, to help you understand every step of the way.

buying or selling your Maui home

Buying or selling a home on Maui?  That's what I do.  Let me help YOU.

Call or text me 808 283-0635 ~ EMAIL 
Aloha from Maui... 

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Topic:
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Hawaii Maui County
Groups:
Mortgages
Hawaii's Home Brokers
Hawaii Real Estate Professionals
RESPA
Real Estate Questions & Answers
Tags:
property tax
title insurance
understanding closing costs
conveyance
withholding tax
escrow fees
buying or selling your maui home
consents

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Rainmaker
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Good information, Georgia. Not unlike what we see in California and, I am sure, in most places. Details are different depending on what kind of loan (conventional vs. FHA, for instance) or other details that are negotiated between buyer and seller. Regional differences often apply. For instance, in Santa Clara County and Alameda County which are contiguous, the traditional expectation in regard to who pays for all or portions of the title and escrow fees is different.

Dec 08, 2012 11:38 AM #1
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Courtney Cooper
Ben Kinney Brokerages Leadership at our Keller Williams North Seattle Office - Seattle, WA
206-850-8841

Great post - what is your conveyance tax rate there?  Always curious from state to state:)

Dec 08, 2012 11:42 AM #2
Rainmaker
2,735,146
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Thorough as heck! One more reason for me to move to HI. :)

Dec 08, 2012 11:55 AM #3
Rainmaker
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Cooper Jacobs
Looking For A Seattle Realtor? COOPERJACOBS.COM - Seattle, WA
Real Estate Brokers - Seattle

What a great piece and thank you for sharing the specifics in the overall scheme of things. There is so much to cover and great to be reminded of the details.

Dec 08, 2012 12:51 PM #4
Rainmaker
1,460,483
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Thanks for your comments.

John - that is what I understand, and why it's a good idea to let buyers and sellers know beforehand

Courtney - our conveyance tax varies depending on price and who the buyer is.... sounds like the topic for another post

 

Dec 13, 2012 02:12 AM #5
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Rainmaker
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Georgie Hunter R(S) 58089

Maui Real Estate sales and lifestyle info
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