# Closing costs?



## KentuckyDreamer (Jan 20, 2012)

We will be looking at land in Kentucky. Would someone please tell me about the closing cost?

It is almost 50 acres. I am assuming we need to get a land survey, well and septic check.

Buildings on land are not habitable so no need to have them inspected.

Thank you for any help.


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## copperkid3 (Mar 18, 2005)

KentuckyDreamer said:


> Buildings on land are not habitable so no need to have them inspected.


+ + + + + + + 
buildings could be hiding hazardous waste?

What about unknown 'dump' sites that could

be leaching into your aquifer . . .

or the neighbor's well?

Asbestos remediation is NOT a cheap endeavor.

Make your offer, contingent upon a thorough inspection that shows what is there. . .

or isn't there, and with an 'out' if you don't want to be left holding the bag in the cost for cleaning it up.


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## TnAndy (Sep 15, 2005)

Closing costs are usually associated with a loan. Are you buying it outright ?

With a loan, you generally have bank fees ( "origination fee", points, etc ) that are (over)charges the bank makes to do their paperwork, getting part of their profit up front (points), and so on.

Then there will be attorney fees. Banks will require their attorney do a title search to assure them nobody else has a prior claim on the land. They will also make you purchase title insurance that covers THEM in case some long lost claimant does show up later. 

You *SHOULD* purchase title insurance for *YOUR* interests for the same reason....whether you use a bank or not. It's *cheap*, any land type attorney can do the search and get you a policy.

The bank may, or may not, require a survey. IF you buy it outright, you may, or may not want a survey. Depends on how well the corners are marked, how complicated the lines are, whether you think problems might arise over a line, etc. 

I bought 70ac where I live now, and the only survey I had done was from one corner on the front to another point on the front....where it met two private owners...the rest, and majority, of my lines are common to National Forest, that line is well marked with red paint, and there is basically no arguing with the govt even IF my own survey came up with something different, so why bother ? It is something you have to decide for your situation.

Septic inspections are a joke, generally. Unless it's running out on the ground, no inspector is going to be able to tell you much unless they dig up the whole thing. You can go to your county health dept, or dept of environment, or whoever issues the permits, and see if a permitted system was installed on the property, and get 'some' idea that way of what was put in.....IF.....it was ever a recorded system....many are not.

Well the same way. In TN now, wells have a State tag on the casing. IF KY does that, and your well has one, you could call the state and get the date it was drilled, the depth, flow, etc. Other wise, the only thing you can do is pull a water sample, take it to the health dept ( or whoever does this there ) and get it checked for coliform bacteria, and maybe a few other tests.

Given today's environmental issues, I'd do a good looking over of the property, and I would probably add something to the sales contract to the effect of any existing environmental issues were the responsibility of the current owner.


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## where I want to (Oct 28, 2008)

I presume you intend to build ? Then you need to check with the county for what they are going to require. In my area, there was septic tests during the rainy season, a soils report, a wildlife and plant survey. I would go as far as I could to get those approved before purchase. 
The dang plant survey was a real surprise to me. I actually cried in frustration at the county permit office but they were not impressed.

But remember closing costs are negotiable. You might be able to get the seller to share the cost with you.


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## KentuckyDreamer (Jan 20, 2012)

We would be buying the land outright, aprox. 47 acres. Monroe county I believe. We will head down in a few weeks if it sounds good.

There is an old house, built 1992. They are taking it apart. Old trashed mobile home and cabin. 

Not sure what we would do yet...need to go down. Mobile home or build. Only time will tell.


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## TnAndy (Sep 15, 2005)

For an outright sale:

1. The buyer will typically pay for the preparation of a deed in your name, you will pay for the fees/taxes to record it at the courthouse. (If there were a deed of trust, you would typically pay for that, but there won't be in a cash sale )

2. Title insurance IF you want it ( and I recommend you get it )

3. Any fee the closing attorney or closing agent charges, if you use one. 

4. Any inspections YOU want.....none are usually required if no bank is involved.


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## KentuckyDreamer (Jan 20, 2012)

Sadly, the land was not for us. It was ridge and hill side, could not be readied for animals or gardening for our needs. 

Thank you all for the information...it will come in useful when we find our place.


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