@mrmood6007 wrote:
Thank you @Opus 17, your explanation is exactly what I had in mind, but I wanted to confirm that made sense. Just to clarify, could you please let me know which of the following fees would be included in the cost basis:
Title Fees - I think these would be included
Settlement Agent Fee - I think this would be included as it is not part of escrow
Escrow Prepayments (i.e. Homeowner's Insurance, Property Taxes, Prepaid Interest) - I do not think these would be included
Appraisal - I do not think this would be included
Mortgage Broker Fees (i.e. Processing, Underwriting, Closing, Document Preparation, Admin Fee.) - I think these would be included
It's all there in the link I gave. The answers are yes, I don't know, no, no, and no.
I don't know what is included in "settlement agent fee." If that is a person who prepares documents and helps you close the loan, the answer is yes if you are paying them (similar to a buyer's attorney in most states) but no if this is the bank's attorney or someone not working for you.
Some settlement fees and closing costs you can include in your basis are:
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Abstract fees (abstract of title fees),
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Charges for installing utility services,
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Legal fees (including fees for the title search and preparing the sales contract and deed),
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Recording fees,
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Survey fees,
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Transfer or stamp taxes, and
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Owner's title insurance.
Settlement costs don’t include amounts placed in escrow for the future payment of items such as taxes and insurance.
Some settlement fees and closing costs you can’t include in your basis are:
