Question

A sale of real property is being handled in the broker's office and there is no escrow called for in the contract. Broker prepares several documents necessary in the sale at a cost of $35.00. Who can the broker charge for this cost?

Answer 1

The broker can charge the $35.00 document preparation cost to the buyer, the seller, or both, depending on the terms of the real estate contract. If the contract does not specify who pays these costs, it may be determined by local customs or require additional negotiation.

Step-by-step explanation:

When it comes to the sale of real property without an escrow, the party responsible for the additional costs incurred for processing necessary documents in the broker's office can vary based on the agreement between the parties. Generally, these costs are subject to negotiation and could either be paid by the buyer, the seller, or split between both parties. However, the final determination of who bears the cost should be outlined in the real estate contract. If the contract is silent on this issue, it would default to local customs or potentially further negotiation. It's also worth noting that some brokers may include such administrative costs as part of their commission fees.

Understanding the concept of escrow is important when purchasing a home. Escrow acts as a neutral third party that securely holds funds and ensures that property taxes and homeowners' insurance are paid as part of the buyer's normal monthly payment.