There's a possible sale of property from my dad's estate. Property is located in Maine. A potential buyer wants a survey done prior to sale. And he's not committed to purchase - even if a survey is done.
Estimates of anywhere from $4000 to $7000 have been received to perform the survey.
The estate has almost nothing in it to pay for this. Who normally would pay? Would you have any suggestions to get out of this situation?
And let's just say... there sure isn't a heck of a lot of potential buyers in the area.
2007-01-30 15:56:36 · 17 answers · asked by Jojo 2 in Business & Finance ➔ Renting & Real Estate
Details. 63 acres - rural area. Potential buyer has property that adjoins the property from my dad's estate.
I have no earthly clue why he wants the survey done.
2007-01-30 16:28:39 · update #1
Most real estate transactions are negotiable.
The buyer should shoulder most of the expenses to protect his interests.
If the buyer insists that your Dad should pay the Survey Plot and all other expenses, your Dad can add these costs to the selling price of the property before quoting the selling price. No money is involved prior to the closing. Normally, the closing cost is shouldered by the seller. The points is shouldered by the buyer.
In my previous real estate transactions, I spent for the appraisal fees of my properties (Less than $300 per appraisal. Shop around). Then I added all the possible fees to arrive at my selling price.
Ask information from any Title Company near your area. They will be glad to help you, especially, if you show an interest to employ them in the transaction. No service fees and exchanges of money are incurred until the final sale is consummated.
By the way, the Survey Plot is included in the Title Search.
I am writing from Texas. However, I do not foresee that the Real Estate Law in Maine should vary that much.
I hope this helps.
2007-01-30 16:33:52 · answer #1 · answered by Anonymous · 1⤊ 0⤋
There is no correct answer. It is something that the buyer and seller agree how ever they feel is best in the circumstances.
Some of the time the party that has the most at risk or the most to gain will pay. If one party has no money then the other might pay but negotiate a higher or lower price if the deal goes forward.
Or you can agree that some money from the sale will stay in escrow to pay the fee after the sale is done. Or you can agree that only if there is a problem would the seller pay. This normally means agreeing two prices. One based on the land meeting some assumption but if the survey proves otherwise a different price will apply.
In some ways if the estate has no money then it does not matter who normally pays. Obviously the buyer has to pay or there will be no survey. The estate can therefore agree to cover the costs out of the sale proceeds if the deal completes. This forces the buyer to consider if they want to take the chance on the survey and then not complete the sale.
2007-01-30 22:00:08 · answer #2 · answered by Anonymous · 1⤊ 1⤋
You don't mention the type of survey or if the property is residential that is in a rural area. I am not as familiar with survey costs in Maine so my basis is my experience in Ohio.
In most cases, the survey cost is up to negotiation just like any other cost associated with closing the loan. Standard residential surveys are usually around $500 to $1,000 depending on the developed area. This can change in more rural areas where there has been changes to property classifications, sell-off of parcels, and other types of modifications to the property area.
Even though you do not have many potential buyers in the area, is the cost of this survey going to provide any value to any other potential buyer? What is the main purpose of the current prospective buyer by having the survey done? Is there something specific that they are looking for from the survey? How much real interest does this prospective buyer have in purchacing the property?
With some of these questions answered, you may be able to work something out with the cost of the survey and sharing that with the prospective buyer. If the survey holds no value to any other prospective buyer, I am not sure that I would invest that amount of money without a stronger written commitment and/or money from the prosective buyer. Skin in the game, that does determine how serious someone is about a property purchase.
I would talk with your attorney on the estate and a really good Realtor concerning these issues and how they are handled in your area. Ultimately your goal is to sell the property but is taking that much of a cost actually going to hurt you in the end.
2007-01-30 16:16:40 · answer #3 · answered by Margaret K 3 · 1⤊ 0⤋
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2016-07-24 01:11:26 · answer #4 · answered by ? 3 · 0⤊ 0⤋
What will you be surveying? A survey should be in your
deed which is on file at the County court house. Or maybe
the prospective buyer feels that the survey lines have been
changed over time. If so, It is usually the seller's responsibility to provide a certified copy of the legal survey.
BUT you can explain to the buyer that there is no money in the estate to to this and if they are a sincere buyer, they can have it done Do you have a real estate person or attorney in on this deal? It is dangerous for you to try do this on your own.
Property in Maine means big bucks--you need legal advice.
There are buyers who know just how to relieve you of this
estate and let you wonder where the money went.
2007-01-30 16:27:33 · answer #5 · answered by Anonymous · 2⤊ 0⤋
A lot of times the buyer will pay for costs. Some times the seller will. The key is that there should be some type of agreement prior to the sale. Make your demands known.
GOOD LUCK!!!
www.tagurit.net
2007-01-30 16:03:26 · answer #6 · answered by Anonymous · 1⤊ 0⤋
I live in Kansas and do not know what the laws are for purchasing property in Maine. Here in Kansas the title or (escrow) company that prepares the deed and does title searches should give survey coverage for the seller, which
means if the potential buyer purchases the property they will guarantee free and clear title to the property and they will list all easements and encroachments. You need to find out why they want a survey. Contact a realtor and a Title company in the area.
2007-01-30 16:11:05 · answer #7 · answered by Paul 2 · 1⤊ 0⤋
$4000 to $7000. is pretty steep. when I purchased my property I paid for the bank to have someone do an Assessment to see if the land was worth the asking price. Also paid a title company (lawyers) to see if any liens or issues with the property existed. The survey however was not an issue as it was clearly marked on the deed and city documents as to where the property markers are. Is there not documentation on the property showing what is there. I would not jump into just yet. or do it on stipulation that buyer split cost of it. or bump up the price.??
About the property??How many acres of land. Where and what is wanted for it. (asking price). Just wondering as I live in Maine.
2007-01-30 16:10:51 · answer #8 · answered by friendly advice from maine 5 · 1⤊ 0⤋
Customarily it is the seller who pays for such a survey. However, you can make it part of the sales contract that the buyer pay for it. That is, if there is no escape clause that would allow the seller to back out if the survey shows something suspicious.
You can always donate the property to a charity and at least get a tax deduction.
2007-01-30 16:05:43 · answer #9 · answered by The Cythian 3 · 0⤊ 2⤋
Typically the survey of this kind is a buyer or lender charge....However things like this ARE negotiable...The survey can be done prior to the closing and then paid for at the closing so the estate won't have to pay up front..And if there are not very many buyers I think you should probably just suck it up and do it!..Sounds like "buyers rule!" in your neck of the woods!...lol...Sorry to hear about your situation and good luck to you and yours..ss
2007-01-31 04:56:57 · answer #10 · answered by Anonymous · 1⤊ 0⤋