Forum

I am about to turn in an offer for a property in Miami, FL.

I was involved in a few REO home deals before and the seller (bank) always have dictated title and closing agent, I just get my own attorney and pay for it out of my pocket.

Down here, it is customary for a regular sale, that the seller pays for:

• Documentary stamp taxes and surtax on deed, if any
• HOA/Condominium Association estoppel fee.
• Owner’s Policy and Charges (if Paragraph 9(c)(i) is checked)
• Recording and other fees needed to cure title
• Title search charges (if Paragraph 9(c)(iii) is checked)
• Seller’s attorneys’ fees

and for the buyer to pay:

• Taxes and recording fees on notes and mortgages
• Loan expenses
• Recording fees for deed and financing statements
• Appraisal fees
• Owner’s Policy and Charges (if Paragraph 9(c)(ii) is checked)
• Buyer’s Inspections
• Survey (and elevation certification, if required)
• Buyer’s attorneys’ fees
• Lender’s title policy and endorsements
• All property related insurance
• HOA/Condominium Association application/transfer fees

Now on to paragraph 9c on the contract.

[  ](i) Seller will designate Closing Agent and pay for Owner’s Policy and Charges (but not including charges 120 for closing services related to Buyer’s lender’s policy and endorsements and loan closing, which amounts 121 shall be paid by Buyer to Closing Agent or such other provider(s) as Buyer may select); or
[  ] (ii) Buyer will designate Closing Agent and pay for Owner’s Policy and Charges and charges for closing 123 services related to Buyer’s lender’s policy, endorsements, and loan closing;

My question is, since the seller (the current home owner) is not getting a dime back on this sale, checking on "Seller will designate Closing Agent and pay for..." means they will incur out of pocket expenses during the closing correct?  That they may reject the offer and not pass it to the bank simply because they have to pay closing?

Or does this clause actually mean the lender to the seller will pay closing cost should the seller accepts the offer?

For short sale, is there a "customary" way to do it?  Does everyone just do "Buyer will designate and pay..."?