In a buyer’s real estate market, it increasingly is common to see a real estate sales agreement provide that the seller is to give the buyer a credit at closing towards the buyer’s closing costs.
- Be careful to define what is meant by “closing costs”: Does it include points or other fees charged by the buyer’s lender? The buyer’s attorney’s fee? The buyer’s recording fees? The phrase “closing costs” means different things to different people and should be clarified, in advance.
- Keep in mind that the state and local conveyance tax will be imposed on the gross sales price, not the adjusted sales price.
- Keep in mind that the broker’s commission also will be based on the gross sales price, not the adjusted sales price, unless the broker expressly agrees otherwise.
We provide affordable legal representation to individuals who are selling and/or buying homes. Our services include a careful review of the sales agreement before it is signed so we can advise you of your rights and responsibilities. Feel free to contact us if you are buying or selling a home.