Settlement figures

[belleran]

We are selling a vacant block of land which requires a partial mortgage release. Who pays for the bank's costs (CBA) of about $350 which includes the mortgage release fee and their attendance at settlement? Can I charge this to the purchaser in the settlement figures?

 

[Wunderbar]

Purchaser pays all those costs.

 

[Peter_Tersteeg]

Wunderbars response requires clarification

The purchaser pays the fees (via their bank), but those fees are deducted from the amount of money you get.

Realisitically you are reponsible for any fees associated with your borrowing (it's certainly not the buyers problem if you have exit costs), but the money to do this is coming from the person buying the property so that's where it 'physically' comes from.

 

[belleran]

But I presume CBA will deduct the $350 in fees from our account not the purchaser's so if I am taking it off the settlement figure I am paying it twice ??

 

[Perp]

But I presume CBA will deduct the $350 in fees from our account not the purchaser's so if I am taking it off the settlement figure I am paying it twice ??

No... if the purchaser owes you $300,000 (excluding all other settlement adjustments), then they pay CBA $350 directly (on your behalf), and you get $299,650 from the purchaser.

 

[cu@thetop]

But I presume CBA will deduct the $350 in fees from our account not the purchaser's so if I am taking it off the settlement figure I am paying it twice ??

Not the buyer's fault you have a bank involved. The $350 is different to the mortgage release fee $127.90 (or more). Ask your solicitor to explain.

 

[Terryw]

What does the Contract of Sale say? I would think a purchaser would only allow the discharge of mortgage fee with land titles.

 

[belleran]

ok thanks everyone.
Looking at the standard contract Clause 2.6 Terms & conditions I think the purchaser can pay the mortgage release fee but vendor responsible for remaining costs. That's the way I will present the settlement figures and see if they query it.

 

[bellz]

You as the seller are liable for the registration fee on your the Release of Mortgage and your bank's costs for attending settlement. Why should the buyer have to wear that? The release registration fee usually gets deducted from your settlement amount at settlement and the banks generally add their settlement to the loan amount due.