The Karlin Law Firm LLP

Providing quality legal services to statewide and national clients in ADA defense, Personal Injury, business and real estate for more than 35 years

866-500-8932
Email Us
Practice Areas

Explaining closing costs for buyers and sellers in California

The total cost of a home in California goes beyond the listed price for the property. Closing costs will also need to be factored into the equation to determine the affordability of a home purchase. The term "closing costs" simply refers to all expenses related to the final step involved with completing a real estate transaction. Such costs are typically shared by both the buyer and seller.

The way closing costs related to the purchase of a residential property will be divided among the buyer and the seller will depend, in part, on results of the negotiation process. The mortgage lender usually provides an estimate for the buyer. Financial terms for the loan will be spelled out in the loan contract. The buyer will also receive a closing disclosure statement from the lender shortly before the settlement date.

Closing costs for the buyer typically range from 2 to 5 percent of the total price of the property. Such expenses are usually related to mortgage loan application processing, inspection and appraisal, title search, escrow and home property insurance. Mortgage broker commission, title insurance costs, some fees that aren't mandatory, such as home warranty fees, and sales commissions that may be up to 6 percent of the purchase price are among the closing costs property sellers are normally expected to cover.

An attorney may be able to help a buyer minimize expenses associated with a real estate closing by mediating negotiations with the seller. Possible outcomes include convincing the seller to cut closing costs or rolling those costs into the long-term cost of the mortgage for the home. If this option is preferred, a buyer may want to ask a lawyer to review the mortgage loan contract to determine if the lender has the right to raise interest rates to recover costs.

No Comments

Leave a comment
Comment Information

Contact Us Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

L. Scott Karlin

L. Scott Karlin

Attorney Profile
David E. Karlin

David E. Karlin

David E. Karlin is a California attorney with a primary focus on business and real estate, including law and legal issues...

Attorney Profile
Michael J. Karlin

Michael J. Karlin

Michael J. Karlin is a Southern California based attorney whose practice primarily focuses on Entertainment Law. Michael began...

Attorney Profile

Recent Articles

ADA Fraud Reported

A recent article on the news concerns a man in Riverside County who allegedly has attempted to obtain money from property owners and businesses based on alleged violations of the Americans with Disablities Act (ADA). Read More

Tustin Office
13522 Newport Avenue, Suite 201
Tustin, CA 92780

Phone: 714-881-0054
Tustin Law Office Map

Newport Beach Office
2901 West Coast Highway, Suite 200
Newport Beach, CA 92663

Phone: 949-427-9328
Newport Beach Law Office Map

Carlsbad Office
2173 Salk Avenue
Suite 250
Carlsbad, CA 92008

Phone: 760-407-2409
Map & Directions

Riverside Office
6809 Indiana Avenue
Suite 100
Riverside, CA 92506

Phone: 951-643-8769
Map & Directions

Los Angeles Office
1100 S. Hope Street
Suite 103
Los Angeles, CA 90015

Phone: 213-519-5633
Map & Directions

Fresno Office
1444 Fulton Street
Fresno, CA 93721

Phone: 951-373-4384
Map & Directions