Key Definitions of Closing Cost and Closing Terms
Purchase and Sale Agreement - This is also known as the contract. This is the legally binding agreement and terms the buyer and seller have agreed to.
Closing Fee – This is the fee charged by the settlement company, usually a title company, for the services they perform to get everything ready for closing.
Title Search – The title search is also commonly known as the abstract of title. The search is performed to confirm that the seller is the rightful owner of the property and that the seller has the right to sell the property.
Title Insurance – Title insurance helps to protect the insured, usually the buyer and/or lender, in case of a lien that was missed or problems with the title that could have been overlooked on the property being purchased. The primary purpose of title insurance is to insure the policy holder against any issues that happened before the day of closing.
Recording or Transfer Fee – This fee is to cover the cost of recording the conveyance and/or lien of the property in the public records office in the county the property is located.
Deed Doc Stamps – This is charged by the county/state where the property is being sold. The amount owed is based on the sales price of the property and it is paid to the county.
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public. Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or www.title-junction.com
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