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Reviewing your Hud 1 at closing

J. Andrew English J. Andrew English

Review your Hud 1 very closely at COE, it is as simple as that.

Hud 1’s are produced by the escrow officer just before closing. This document breaks down the exact cost of the transaction between buyer and seller. In its most basic form, the Hud 1 is a list of debits and credits to both parties. (sim to a balance sheet) Every fee charged by the lender, brokers, escrow company, etc.. will appear on this document. You as the seller want to make sure this document is accurate before signing. It is very common for the Hud 1 to contain mistakes, thus, it is essential you review this document. A few things to watch out for on your Hud 1 below.

Overnight fees from TitleĀ – Many times you will see an overnight fee on your Hud 1, however, you very well may not have had anything overnighted to you.

Incorrect Commissions -Escrow Officers don’t always get these right despite receiving written instructions from both brokerages.

Tax Prorations – If you own the property free and clear, you may have already paid your property taxes directly.

HOA Fees – HOA’s are notorious for double charging buyers and sellers. Double check the Hud 1 and your most recent HOA bill to ensure your HOA is not collecting the same fee from both you and your buyer.

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