There are costs other than the sales price that are incurred in your real estate purchase in a retirement community. As the buyer, your share of these costs will typically range from 1% to 2% of the sales price. The closing costs that you pay will be a function of a couple factors including what you have negotiated in the real estate contract and whether or not you are getting a mortgage. Costs that are customarily paid for by the buyer include:
• Recording of the deed
• Documentary stamps on the deed*
*This is typically paid by the seller in a resale transaction, but I included it here because many builders require the buyer to pay this
• Documentary stamps on the mortgage
• Intangible tax on the mortgage Lender’s title insurance policy
• Taxes
• Prepaid interest
• Prepaid HOA Dues, capital contributions, or transfer fees
• One year of insurance in full
• Appraisal Fee
• Underwriting Fee
• Flood certification fee
• And more…
How should baby boomers take title?
How you take title to your home is an important question that should only be answered after consulting an attorney, and your accountant, due to tax and estate-planning implications. How you take title establishes proof of ownership of a property, and often determines who will inherit your home when you die.
Sole Owner
Also known as owner in severalty, sole ownership is how you might take title if you are single, divorced, or widowed. Should you happen to die while owning the property, the property will be passed on according to your will. If you do not have a will, it will be passed on by descent to your heirs.
Tenancy by the Entireties
Tenancy by the Entireties is the most common way to take title in Florida for those who are married. In this case, if one spouse dies, the remaining spouse automatically becomes the owner.
Tenancy in Common
If you are in a second (or third, or fourth) marriage and you have children from a previous marriage, you may want to consider a tenancy in common. In this case, if you should die, your share of ownership in the property can be willed to your children.
Joint Tenants with Right of Survivorship
If you and the person you live with are not married, but you want to ensure that they receive full ownership of the property when you die, then joint tenancy with right of survivorship may be for you. The surviving owner will own the property outright, and the heirs of the deceased will have no claim to the property.
Taking Title in a Trust
Another option many boomers may want to consider is to take title in a trust. Speak to an estate planning attorney or a real estate attorney as to how and why you might take title in this way