Buying Real Estate in North Carolina 29 – Due Diligence Period: Cost Estimates, Part IV

And finally,

Survey

    Your Attorney will order a Survey for you and the cost of the Survey may have been included in your lender’s estimate of money that you will need to close on your home. Expect to spend a minimum of $400 and up for a survey

Title Search & Other Attorney Fees

  • The Title Search and any other fees for work completed by your Attorney will be billed at Closing and may also have been included in your lender’s estimate. If not, I have quite an extensive list of exceptional Attorneys that are happy to give you a quote for their fees associated with Closing.

When North Carolina first went to a Due Diligence Contract a few years ago, Sellers were none too happy with this new arrangement.  Since a Buyer might only spend around $100 for five weeks of Due Diligence, the Sellers maintained that this was completely unfair.  The Buyers, they believed, had no risk.

I maintain, however, that the Buyers not only have risk, but they have great risk.  I have had Buyers pay for all sorts of these services during Due Diligence only to come upon issues and have no choice but to leave the contract, easily losing at the very least the cost of the Due Diligence Fee plus an inspection or the appraisal.  And at the very most, I have had Buyers leave a contract having had nearly all of their Due Diligence research completed and spending $2,000 to $3,000, sometimes more, that they will not get back.  So, to say that Buyers have no risk is simply not true.

Because of that, next time, I would like to touch on prioritizing your Due Diligence Research.

One more note, though, about the cost of Due Diligence.  In October of 2015, the last of the Dodd-Frank Act went into effect, meant to further protect you in the course of obtaining a mortgage loan.  Because of that, we now have limited access to attorneys’ offices, lenders and attorneys must communicate through portals, all must maintain risk insurance and so on.  Think of these new TRID laws as a way to protect your financial information the same way HIPPA came about to protect your medical information.  TRID is short for a whole lot of stuff!  “Truth in Lending Act” or TILA, “Real Estate Settlement Procedures Act” or RESPA, “Integrated”, “Disclosure” Rule.  In short, everything about the cost of your loan should be disclosed to you up front and your information should be kept private, between you, your lender and your attorney only.  You even have to give the lender and attorney permission to let me see this information!  I’m telling you this because this much more work has increased attorneys’ fees for closings.  Before TRID, here in the Triangle, attorneys’ fees to close ran around $500 to $700.  Now, they range from $900 to $1200 and up.

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