See bold print
The first table of expenses on my settlement statement is named "New Loans", and includes the following, and they're all written to the bank that I used: These are banking/loan fees and are not added to the cost basis of your property. Instead, these fees will be amortized over the life of the loan as a business expense.
- Environmental report to Bank
- Appraisal report to Bank
- Credit report to Bank
- Flood certification to Bank
- Lexus nexus to Bank
- Wire fee to Bank
- UCC fees to Bank
- Tax transcripts to Bank
- Tax transcript fee to Bank
- Guaranty fee (this one was really expensive because this is an SBA loan on the property) to Bank
- Packaging fee to Bank
The next table on the statement is named "Title Escrow Charges to", and includes the following: These fees will be added to the cost basis of your property and depreciated along with the property. If this is a commercial building, the depreciation is over 39 years. If this is a residential rental property, your depreciation will be for 27.5 years.
Legal fees, title search, document prep
- E-recording fee to Title Company
- Misc Title Processing Fee to Title Company
- Escrow/Closing Fee to Title Company
- ALTA Loan Policy extended to Title Company (This may be your title insurance, you will need to check with your attorney or whoever did the title search)
- OTIRO, REM, Environmental Protection to Title Company
Recording Fees
- Record Warranty Deed - First
- Record Warranty Deed of Trust - First
- Record Deed of Trust - Other to County Clerk
- Record Assignment of Rents to County Clerk
Then the last and final table is named "Disbursements Paid" and includes the following: This I am not sure of, it looks like it may be the law firm that handled the property, like a real estate agent or someone that listed the property? Or did you have to pay other fees for the seller like back water bills or other items to get the title clear? If they are costs you paid for the seller, they would be included in the cost basis as well.
- Professional Fees to SettlePou (this was also pretty expensive)
- Expenses to SettlePou
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