A Louisiana property's closing costs are typically:
Correct Answer
B) Negotiable between buyer and seller, but the buyer commonly pays title insurance, lender fees, and recording costs while the seller pays the commission and act of sale preparation
Closing cost allocation is negotiable. Custom varies by parish, but buyers commonly pay for title examination, title insurance, and lender-related fees, while sellers typically pay the real estate commission and may pay for the act of sale preparation.
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Related Topics & Key Terms
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Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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