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Updated over 10 years ago on . Most recent reply
Question about Closing Agent Pricing
Hello,
I am putting together a deal and looking for a title company in Chicago. One got back to me with their pricing and I'd love some advice about whether it is a fair price or not. It is more than I thought, at this price I wouldn't make any money.
Also, in a wholesaling deal who pays for what in the B to C transaction? Is it common for me (B) to pay for everything or should the cash buyer (C) pay for half?
Below is the email the title company sent.
Thanks!
Elliot Erickson
Below is the pricing for the first purchase transaction for a purchase price of $68,000.00 based upon the transaction being a cash transaction:
Seller charges:
Owner’s Policy - $1,525.00
IL Policy Fee - $3.00
ICPL (Seller) - $50.00
Zoning Certification Processing Fee - $80.00
Water Certification Processing Fee - $80.00
Zoning Certification - $120.00
Update Commitment Fee - $125.00
City of Chicago Transfer Tax - $204.00
State Transfer Tax - $68.00
County Transfer Tax - $34.00
Notarial Record Fee (If Applicable) - $25.00
Notarial Record Filing Fee (If Applicable) - $5.00
Recording of Release (If Applicable) - $54.00
Payoff Processing Fee (If Applicable)- $40.00
Proceeds wire fee (If Applicable) - $40.00
Buyer charges:
Closing Fee - $1,075.00
ICPL (Buyer) - $25.00
Recording of Deed - $54.00
Recording of Power of Attorney (If Applicable) - $54.00 estimated
Wire Fee (Per wire) - $40.00
Document Administration Fee - $25.00
Email Fee - $40.00
Later Date Examination - $125.00
City of Chicago Transfer Tax - $510.00
Below is the pricing for the second purchase transaction for a purchase price of $75,000.00 with a loan/mortgage policy:
Seller charges:
Owner’s Policy - $1,525.00
IL Policy Fee - $3.00
ICPL (Seller) - $50.00
Zoning Certification Processing Fee - $80.00
Water Certification Processing Fee - $80.00
Zoning Certification - $120.00
Update Commitment Fee - $125.00
City of Chicago Transfer Tax - $225.00
State Transfer Tax - $75.00
County Transfer Tax - $37.50
Notarial Record Fee (If Applicable) - $25.00
Notarial Record Filing Fee (If Applicable) - $5.00
Recording of Release (If Applicable) - $54.00
Payoff Processing Fee (If Applicable)- $40.00
Proceeds wire fee (If Applicable) - $40.00
Buyer charges:
Loan Policy - $500.00
Closing Fee - $1,075.00
ICPL (Buyer) - $25.00
ICPL (Lender) - $25.00
IL Policy Fee - $3.00
Chain of Title - $125.00
Predatory Lending Certificate - $150.00
Recording of Deed - $54.00
Recording of Mortgage - $86.00
Recording of Power of Attorney (If Applicable) - $54.00 estimated
Recording of Assignment of Mortgage (If Applicable) - $54.00
Wire Fee (Per wire) - $40.00
Document Administration Fee - $25.00
Email Fee - $40.00
Later Date Examination - $125.00
City of Chicago Transfer Tax - $562.50
Endorsements - $175.00 per endorsement
Most Popular Reply
Let's forget the title company for a minute and back the deal train up. I have a couple of questions that need to be answered, before you get to closing...
1. Did you not factor in "fixed costs", when you did your deal analysis?
2. Why in the world would you do a double closing on a property with a purchase price <$100k? Double closing is always going to be more expensive. I would just do a straight assignment of contract.
If you didn't analyze your deal correctly, you may have to facilitate this sale, to be fair to the seller, and walk away with little or no profit. Afterwards, you need to sit down and reevaluate your deal analysis process. It doesn't sound to me like you understood the numbers and costs involved with the process.