Things you should know when buying a property
Who knew buying a property was so complex? We knew. And we are happy to further explain any of these topics.
Owner’s Policy – Title insurance is indemnity insurance against financial loss arising from defects in the title. These issues could include errors or omissions on deeds, mistakes in examining records, forgery or undisclosed liens. It is normally issued in the amount of the purchase, and it is common practice here that the seller covers the cost.
Lender’s Policy – Lenders will normally require a form of title insurance, known as a Loan Policy, to protect their interests in the property. It does not protect the buyer. It is based on the dollar amount of the loan and decreases as the loan gets paid off. You, the buyer, incur this cost.
Buyer closing costs
At closing you can expect to pay for the items listed below. Your broker should be able to give you an estimate of approximate charges early in your search, and exact figures will be available a few days before a normally-scheduled closing.
- Tax reserve
- Interest on the loan (pending the first scheduled payment)
- Tax service fee
- Homeowner’s insurance (flood hazard insurance may also be necessary)
- Lender’s processing fee
- Underwriting fee
- Appraisal fee
- Title Company fee
- Mortgage Title Premium
- Closing fee (usually split between buyer and seller)
- Common endorsement
- Courier fees
- State documentary fee
- Recording fees
- Homeowner’s Association adjustments (if any)
- Water and Sewer adjustments and transfer charges (if any)
Boulder County and Boulder City have very different and very complex building codes. These codes have a significant impact on what is allowed in terms of style, height restrictions, size and energy efficiency. If you are considering building or remodeling, we recommend that you consult with a building contractor before your purchase.
Boulder County is in the process of ensuring all septic systems are permitted and up to current standards. A sale or building permit will now trigger a check on the system’s permit status. KL Realty can help you understand the implications as they affect you, the buyer.