When you first purchase a new build home, it can be both an exciting and confusing time. For condominiums, it can be even more so, especially when it comes to closing costs. There are several different fees and expenses to settle when closing a condo deal.
While the costs will be different depending on the specific property, we've summarized some of the most common closing costs here for you, and will look at more in future weeks. While not a complete list, it should help you understand some of the costs that will be included in your final payments upon closing.
- The Down Payment: This is the amount of money the buyer puts down to secure a purchase. Generally, the payment ranges from 5% to 20% of the purchase price. A seller may accept a higher or lower amount depending on the situation. In some cases, you may put a portion of the down payment as a deposit at the start of the sale, and then provide the rest by the closing date.
- The Status Certificate: This document contains important information regarding the cost of your unit. It will outline additional costs such as maintenance fees, parking fees and locker fees. It will also outline the rules and regulations of the condo, such use of the unit, noise levels and use of the amenities.
- Legal Fees: These fees will be tallied by the lawyer, and include costs for the title search, reviewing the purchase and sale agreement and mortgage documents. Fees may also include any actions taken to resolve any hiccups or issues ahead of the closing date.
You can check out the New In Homes website for a full-break down of closing costs. However, in order to help you understand what your final costs will, consult a real estate lawyer. He or she will be able to breakdown any complexities in your agreement, and help you understand what you are paying for upon closing.