• Excise/Gains tax for the sale, if applicable. • Prorated costs for your share of annual expenses include property taxes, homeowner association fees, and utilities. • The seller sometimes pays other fees (appraisals, inspections, buyer's closing costs, etc.).
Spending Earnest Money Given to You
Remember that the earnest money you give when your offer is accepted does not belong to you until the deal is closed and recorded. Many stories about sellers' agents who spent the deposit money before the closing have emerged. In cases where the transaction did not go through due to issues such as financing contingency, failure of inspection, or repair problems, the buyers had to fight or sue for a refund. That's why hiring a real estate agent is beneficial. The agent is a neutral party who will hold the deposit for you until the closing day. Also, they will ensure that your contract clearly states what happens to the funds if the transaction doesn't close. In my practice, the seller designates the title company, which holds all deposits.
Forgetting to Cancel/Switch Utilities and Insurance
It's common for sellers to forget to inform their utility companies when moving or applying for utility services at their new home. Once a contract is signed, it's essential to contact the utilities and insurance company to let them know of the move. Even if the insurance policy is transferable, confirming that with the company is crucial, as it may not be the case. It's also important to ask the companies how many days of lead time they need to switch or cancel the services and then inform them of the closing date once it's confirmed. As your agent, I'll assist you with the logistics of utilities and insurance for both the home you're selling and the one you're purchasing.
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