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#2181361 - 06/12/18 09:00 AM Where to disclose seller costs on LE/CD
Likes to Comply Offline
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Registered: 11/07/08
Posts: 727
Loc: In the mountains
It is not often buyers pay any of the seller costs in this area. I am not clear on where these costs are disclosed.

If the buyer is paying the seller's settlement fee in addition to their own, is the seller's settlement fee disclosed in H. Other? What about any portion of government recording or taxes, is it reported in H. Other except if it is transfer taxes?

I thought that everything associated with the seller whether it is paid by the seller (then wouldn't be on LE, but would be on CD) or paid by the consumer (then would be on the LE and CD) would always be disclosed in H. Other with the exception of transfer taxes, which would be reported on that line item...

Is that correct?

Thanks in advance
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TRID - TILA/RESPA Integrated Disclosures Rule
#2181362 - 06/12/18 09:07 AM Re: Where to disclose seller costs on LE/CD [Re: Likes to Comply]
RR Joker Offline
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Registered: 11/15/02
Posts: 20018
Loc: The Swamp
Basically, if it's required in order to close a loan, it's disclosed as a cost in the appropriate category [such as anything recording, like a lien release on seller]. If it's NOT required, it would go in other. So, for instance, if it's not a requirement that the seller have their own settlement-related fee, then it would go in 'other'. If not, it would go in services you can't shop for, because I assume the buyer wouldn't be able to shop for this...again , ASSUME! smile
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#2181386 - 06/12/18 10:10 AM Re: Where to disclose seller costs on LE/CD [Re: Likes to Comply]
Likes to Comply Offline
Platinum Poster

Registered: 11/07/08
Posts: 727
Loc: In the mountains
In this area the the buyer and seller each have a settlement fee (closing). So whether the buyer and seller each pay their own portion or the buyer pays all or the seller pays all, it is disclosed on the CD at B. Services Borrower Did Not Shop For if the closing attorney was on the shopping list or C. Services Borrower Did Shop for if the attorney was not on the shopping list.

Recording fees, transfer taxes, and other taxes is always in E. Taxes and Other Government Fees no matter who is being charged the fee or who is paying for it.

If the buyer is paying for the seller's costs that are reported in B. Services Borrower Did Not Shop For or E. Taxes and Other Government Fees, then they are subject to the appropriate tolerances.

Is that correct?
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#2181391 - 06/12/18 10:26 AM Re: Where to disclose seller costs on LE/CD [Re: Likes to Comply]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 20018
Loc: The Swamp
I would say yes. However, it seems a bit unfair to hold the Seller's settlement fee to 10% unless you know up front who it is so that you can obtain the fee from them. However, if you don't have that info [not chosen by seller yet] you should be able to do a CC and correct it once you do know.
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My opinion only. Not legal advice.

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#2181393 - 06/12/18 10:31 AM Re: Where to disclose seller costs on LE/CD [Re: Likes to Comply]
Likes to Comply Offline
Platinum Poster

Registered: 11/07/08
Posts: 727
Loc: In the mountains
Great. Thanks very much!!!
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#2181397 - 06/12/18 10:44 AM Re: Where to disclose seller costs on LE/CD [Re: Likes to Comply]
Oursisnottoreasonwhy Offline
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Registered: 11/30/04
Posts: 395
Loc: Central Illinois

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