What is Escrow?

Escrow is the process by which the interests of all parties in a real estate transaction are protected, ensuring that all conditions of the sale have been met before property and money change hands. Escrow is an independent depository wherein all funds, instructions, and documents for the purchase of your home are held, including: What is Escrow?

Property Taxes and Bond Debt

Property taxes are paid in arrears on a calendar year basis. Non-Ad Valorem Assessments are paid in advance on a fiscal year basis (October 1^st thru September 30^th).  Accordingly, the Buyer will receive a credit from the Seller for property taxes from Jan. 1st to the day of Closing.  The Buyer will be debited for assessments paid by the Seller in advance from the past October 1^st to the day of Closing.  Any remaining bond may be paid off upon Closing or during any year.  If not paid, the balance will automatically finance, and the principal and interest will be added to the property tax bill as a Non-Ad Valorem assessment.

Title Insurance, Doc Stamps, Other Costs *

1) The title insurance policy confirms clear title and is required by mortgage lenders.  And is important to have in any case.  The cost for the buyer's title policy is paid by the Seller in a pre-owned purchase and by the Buyer in a new home purchase.  It costs about 1% of the home's purchase price.         

(2) Doc Stamps is the state tax on the transaction. It costs $0.70 per each $1000 of the purchase price and is paid by the Seller in a preowned purchase and you, the Buyer, in a new home purchase.         

(3) The home inspection is about $350 to $400 and the termite inspection is about $120.  These inspections are not required but strongly recommended.  The Amenities Fee is currently $179 per month.  It can increase with changes in the consumer price index (CPI).  The water and sewer charge are based on consumption; about $60 per month.  Trash collection is about $20 per month.

Start-up Services

It is recommended that you bind or purchase homeowner's insurance coverage from a local broker experienced with Villages home values and construction as soon as possible after the contract's Effective Date.  A few days prior to Closing have the electric and natural gas utilities transferred into your name.  Don't turn off service.  Water and sewer, trash collection, and the amenities fee will transfer automatically to you upon closing.  Annual termite inspections by a bonded contractor are strongly recommended.  When existing, they are transferrable to the new homeowner and cost about $150 per year.  See me for other service providers you may require, e.g. handyman repairs, pest control, painting, remodeling, lawn, and landscaping, etc.

*  The above costs are estimates only and do not include any charges or expenses related to mortgage loans or prorated costs, e.g. property taxes and assessments, water and sewer charges, amenities, etc.  This is only an estimate of certain closing costs and not a full accounting of actual costs which will be prepared by the closing agent and addressed prior to closing.

All Rights Reserved Walter Coe, 09/01/202