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Purchasers Estimation of closing Expenses on Hilton Head Island:
• We are an attorney closing state. In other areas, banks handle the closing,.
here the buyer and the seller each have their own attorney. All title work and
doc preparation is handled by the attorney. The attorney fee is generally $650-850.
depending on the extensiveness of the closing.
• The Hilton Head Transfer fee is one quarter of one percent of the sales price. This
money goes into a fund that buys land to be used for the public as open spaces,
parks, etc.
• Some communities have implemented their own transfer fees that are used
internally and to be paid at closing. This fee is either for a club membership transfer
or for the maintenance of the infrastructure of the community. They vary from
either 1/4% or 1/2% of the purchase price (as in Palmetto Dunes, Shipyard, &
Hilton Head Plantation,) to a set fee ($20,000 in Long Cove & Wexford.)
• Property taxes are paid in arrears and will be prorated at closing with a credit to the
purchaser for the from the seller for the portion of the year the seller owned the unit.
The tax bill that you receive in Oct./Nov. will be yours.
• Your mortgage expenses , any escrows, points, appraisal, application fee, etc.
Discuss these with your lender.
• Insurance is necessary for any property purchased with a mortgage. You will need
Flood, wind & hail & homeowners insurance. Some companies sell policies that are
have these separated and few bundle the wind & hail with the homeowner policy.
The flood policy underwritten by FEMA covers up to $250,000. If the home is
valued higher than $250,000, you will need excess flood. Insurance companies have
tightened the guidelines over the years. Before making a purchase be sure the
property you are interested in can be insured without alteration to the dwelling.
• Insurance for a villa/condo is generally covered by the regime and covers the
building. You will need contents insurance. Be sure to find out from the regime
management company what the coverage is. You may be responsible more
than contents.
• If you are buying a villa—-the Regime fee (condo fee) will be collected from you in
advance for 1-2 months. Management Companies also charge their own fees for
processing the necessary documents needed for closing. These vary by complex. |
