Real Estate Law
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So the question is, what is the effect? Is the entire “all fees will be the responsibility of the buyer, including owner’s policy, transfer fees, recording fees, etc.” stricken? Or just the “transfer fees” phrase?
When a clause in a contract comes into conflict with state law, then that clause is just marked through and voided as if it wasn't in the contract. Since the law refers to just the recording and transfer fees, that is the only portion that would be the responsibility of the seller assuming the First-Time Homebuyer Transfer and Recordation Tax Addendum was included in the contract.
An owner's title policy would be the owner's responsibility to pay for since it is not a tax or recording fee unless they reached some other agreement with the seller (i.e. use their title company).
As an aside, I used to be a closing attorney for 4 separate lenders and have closed probably a couple thousand loans..
So I would be on the hook for the recordation tax and local transfer tax, then, correct?
Correct, since the default is the seller is responsible unless there is a specific clause changing that, and there is a specific clause changing that, then that makes you responsible.
This being the specific clause "Seller is able to refer a title company to facilitate the closing, however all fees will be the responsibility of the buyer, including, but not limited to: Owner’s Policy, Transfer fees, recording fees, etc.”
So absent that clause, the seller would pay everything.