Escrow & Title
A Connecticut property closing has a dispute over who bears the closing costs. The purchase contract is silent on this point. Under Connecticut custom:
AThe buyer pays all closing costs
BThe seller pays all closing costs
CThe parties negotiate; certain costs are customarily paid by the seller (conveyance tax, attorney fee, discharge of existing mortgage) and others by the buyer (lender's title insurance, recording fees)✓ Correct
DThe broker pays all closing costs from the commission
Explanation
Connecticut closing customs allocate costs between buyer and seller. The seller typically pays the conveyance tax, their attorney fee, and the cost to discharge existing mortgages. The buyer typically pays for lender's title insurance, owner's title insurance, recording fees, and their own attorney fee. These customs may be varied by contract.
Related Connecticut Escrow & Title Questions
- A Connecticut deed must meet which of the following requirements to be legally valid?
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- In Connecticut, which lien generally has the highest priority over other liens on a property?
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- A 'cloud on title' discovered after a Connecticut closing would typically be resolved through a:
- Which party typically pays the lender's title insurance policy premium in a Connecticut real estate transaction?
- Under Connecticut law, who is responsible for paying the real estate conveyance tax in most residential sales?
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