The Anatomy of Selling a Home
How Much Money Will I Get?
How much money you receive at closing depends on many things, but you can get a rough estimate using this chart. [ Printer - Friendly Chart ] | Sales Price | -$ | | Commission | -$ | | Attorneys Fees | ($425.00) | | FedEx Fee ($7.50/mortage) | -$ | Transfer taxes -
sales price x 0.0075 (0.01 for Groton, Norwich and New London) | -$ | | Mortgage | -$ | | Mortgage | -$ | | Taxes due | -$ | | Water/sewer use fees due | -$ | | Mortgage release tracking ($48/mortgage) | -$ | | Mortgage payoff notification fee (($20/mortgage) | -$ | | | | Link to sample HUD How much money you get to keep depends on if you have to pay capital gains. If you can answer “Yes” to all four of these questions, you should (not “can”) be able to exempt your capital gains from taxation. Please see the following paragraph. [ Printer - Friendly Chart ] | Yes | No | | | | | (1) I owned and used the residence as my principal residence for periods aggregating 2 years or more during the 5-year period ending on the date of the sale or exchange of the residence. | | | | (2) I have not sold or exchanged another principal residence during the 2-year period ending on the date of the sale or exchange of the residence (not taking into account any sale or exchange before May 7, 1997). | | | | (3) No portion of the residence has been used for business or rental purposes by me (or any spouse if I am married) after May 6, 1997. | | | | (4) At least one of the following three statements applies: The sale or exchange is of the entire residence for $250,000 or less.
OR
I am married, the sale or exchange is of the entire residence for $500,000 or less, and the gain on the sale or exchange of the entire residence is $250,000 or less.
OR
I am married, the sale or exchange is of the entire residence for $500,000 or less,
and
(a) I intend to file a joint return for the year of the sale or exchange,
(b) my spouse also used the residence as his or her principal residence for periods aggregating 2 years or more during the 5-year period ending on the date of the sale or exchange of the residence,
and
(c) my spouse also has not sold or exchanged another principal residence during the 2-year period ending on the date of the sale or exchange of the residence (not taking into account any sale or exchange before May 7, 1997). | To get a more accurate estimate of your capital gains liability, talk to your accountant or go to www.irs.gov, click on Forms and Publications on the left and type in “Publication 523" Do I Need an Attorney?
In Connecticut, all parties are customarily represented by an attorney. We do a lot for you. 1 - From the legal aspect, the biggest thing we do is review the title search information given to us by the buyers’ attorney and work with you to resolve any title issues. 2 - From a practical aspect, we, along with your real estate agent, will keep track of your closing, and the outcome of the inspections done by the buyer. What Type of Disclosures Do I Have to Make to the Buyer?
Connecticut law requires most sellers to disclose the condition of their homes to buyers through a Residential Property Condition Disclosure Report. Additionally, if the home was built before 1978, federal law requires that you make lead paint disclosures, including any information on any tests done for lead paint on the property If problems arise, we can advise you on your legal rights and remedies, but remember that most solutions are derived from people, not lawyers. The most important relationship you might have in this transaction may very well be with the buyer. What About the Contract?
In most Connecticut real estate transactions the contract signed without attorney review. If you have not signed a contract, you may want to have your real estate agent include a provision in any contract you sign that allows you to have us approve your contract. Your contract will contain a closing date which a GUESTIMATE. The actual date of closing may be a days or weeks earlier or later than the date on the contract. If you to MUST close ON a specific date, tell us immediately. What Happens at Closing?
The “closing” is where you actually transfer ownership of your property. It is also where you get paid for it (although you can’t cash your check immediately). (If you do need immediate access to your money, please ask us to arrange for a wire transfer for you. If you are purchasing another home in state, you will be able to take your check from the closing to that closing. If you are immediately purchasing another home out of state you will probably need a wire.) Both sellers, buyers, their attorneys and agents will be there. Usually the buyers will inspect the property (“ pre-closing inspection”) immediately prior to closing. Any problems found are then, hopefully, hammered out at the closing table. You will sign the deed transferring title to the buyer. After the buyer signs all the mortgage documents, the deed will be recorded on the land records. You can then cash your proceeds check from the sale.
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