Understanding Conveyancing Fees

If you have an escrow account, the county in which you live is supposed to charge you a fee called a conveyance fee. This fee is supposed to help the county remove your home from your possession and give you the choice of selling it or leaving it on the market. If you pay this fee, you do have the option of taking out a mortgage to purchase the home or wait until after the sale to find another buyer. But if you decide to take out a mortgage, you need to make sure that you understand all of the costs involved and that you understand the options available to you.

Conveyance fee -Help the county remove your home from your possession

conveyance fee

 

Generally, these fees are calculated on the day the transaction is closed, whether by you or the bank. Some counties will allow you and the bank to come to an agreement on a schedule to compute these fees and others will require that the fees be computed immediately after the sale. If the transaction closes after the specified time, the amount due will generally be due for the transfer of title, whether it is a house lot, parcel or an apartment unit. The bank, however, will need to provide you with a cashier’s check for the amount due on title. If your contract states that the bank must pay the seller for the amount due on the title, you will be charged for a seller’s permit fee as well. And if the contract allows for a deficiency fee, you will be charged that fee as well.

 

It’s important to understand that there may be separate fees that apply to different transactions. And that sellers who offer to help you avoid these types of fees may offer you a voidable conveyance fee, which is designed to reimburse you for the expenses you incur but which may prevent your transaction from going through. You should always ask your real estate agent for a complete list of all applicable fees, both the regular conveyance fee and the void conveyance fee. Once you have this information, you’ll be able to make decisions about your transaction accordingly.