Closing Costs & Contingencies

Q & A: Escrow & Closing Costs

Click a question to jump right to the answer:

  1. What are closing costs?
  2. What is a contingency?

What are closing costs?
For the Seller, closing costs are the transaction fees charged by the titlecompany and real estate brokerage. Generally closing costs cover items such as taxes, recording, title company services and commissions. The Magnificent Manors Team will provide you with an Estimated Cost to Close Statement so you will understand what your net proceeds will be from the sale of your house.

What is a contingency?
A contingency is a stipulation added to a real estate contract that would make the contract void if the condition was or was not met. The addition of contingencies to an offer ensures that the buyer or seller is protected during the purchase process. A buyer or seller is able to add a contingency to the offer or counter offer, but it must be agreed upon by the other party. Examples of common contingencies added to contracts are: financing, inspection, appraisal, the sale of the buyer’s current home or lot or the seller finding a home of choice.