I’m looking at a fixer-upper in Burlholme, and it’s a bank owned property. It says that “Any and all Certs, CO’s and U & O’s are a responsibility of the buyer before closing. Buyer is responsible for all transfer tax, survey, escrow and closing fees.” How much are these extra fees?
Certs, U&O and CO’s are all the same idea. They are talking about “Use & Occupancy” certifications or “Certificates of Occupancy” from the township in which the property is located. Usually the seller has to provide this certification to sell, but in this case, you need to go get it. It is $100 in Philly and it can be obtained from the City of Philadelphia Department of Licenses and Inspections 1401 JFK Blvd or online for an additional $3.
The transfer tax in Philadelphia is 4 percent of the sale price and is usually split between the buyer and seller. If the bank is requiring the buyer pay the seller side, then it would be an additional 2 percent of the sale price above the usual costs.
Ask your realtor if his or her title company charges the seller any additional closing fees. Many do not, but I have seen some that do charge the seller a closing fee. If there is one, this would be your responsibility also. Sometimes the bank will provide title, so you can save some money there, but the title company will usually charge a fee for title service.
Bank-owned properties can be a good deal for buyers. Many brokers who list bank owned properties use the same language in all their listings because all townships and states are different but every transaction is unique. I would prepare to have this extra money for settlement if you’re buying a bank owned property.
Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.