Unless you are purchasing a condominium, a hazard insurance policy must be in place and paid for in full at the time of closing. Your homeowner’s insurance coverage must be in an amount at least equal to the total of all new mortgages on the property or 100% of the replacement cost of all insurable buildings and other improvements on the land. IF YOU ARE GOING TO RELY ON THE 100% REPLACEMENT COST AMOUNT AS SUFFICIENT INSURANCE, THEN THE POLICY OR BINDER MUST STATE THAT 100% REPLACEMENT COST IS IN EFFECT. The insurance policy or binder must name all of the persons who will hold title to the property. The mortgage clause adding the mortgagee’s insurable interest to all policies MUST BE WORDED in accordance with the instructions listed in your commitment letter issued to you by your lender. Your insurance agent MUST fax or deliver to our office at least one week prior to closing a copy of a binder for such insurance along with a receipt showing that the first year’s premium is paid in full (please see Buyer Questionnaire).
If you are purchasing a condominium unit, we will require a Certificate of Insurance from the insurance carrier for the condominium association naming you and the association and identifying the unit you are purchasing. The language naming the lender must be in the form set forth in Paragraph 2 above. Please note that you may be required to purchase additional insurance if the insurance company does not provide 100% replacement cost coverage.
The State of New Hampshire imposes a transfer tax or tax stamps on all residential real estate transactions. This tax rate is currently equal to $15 per thousand of the selling price of the property which is then divided evenly between the buyer(s) and seller(s). Therefore, the amount that will appear on your Settlement Statement as part of your closing costs will be $7.50 per one thousand dollars of your purchase price, unless otherwise agreed upon in accordance with your signed Purchase and Sales Agreement.
These costs include the expedited, traceable delivery of your executed documents back to your lender, the Registry of Deeds, or any other required delivery location.
If the premises are located within a specially designated Federal flood hazard area, then flood insurance is a mandatory requirement and you must provide a flood insurance policy together with a paid receipt for the full first year’s premium before the closing.
These include the costs to record your new deed and mortgage(s) with the Registry of Deeds in the County where the property is located.
Your lender requires that they be provided with a lender’s title insurance policy (Loan policy) to protect their interest in your property up to the amount of the mortgage. While the premium for the loan policy is included in your closing costs, it does not protect you. Your ownership interests are insured only by an owner’s title insurance policy (Owner’s policy). While the lender’s coverage under the loan policy decreases as the mortgage is paid down and terminates when the final payment is made, your owner’s policy remains in effect for as long as you and your heirs own the property. An owner’s title policy is available for a one-time premium and at a discounted rate if purchased simultaneously with the loan policy at the time of closing. The owner’s policy provides coverage for numerous matters which are not discovered by a title search. Typical examples of such title problems include:
Strongly recommended for homebuyers are value-added title insurance policies which provide you with additional protection for risks such as zoning and building permit violations, restrictive covenant violations, encroachments and defects in title.