What is a Closing Disclosure?

Top 50 Questions about Farmland

A Closing Disclosure is a detailed document that itemizes all fees, costs, and financial details for a farmland transaction. It ensures transparency by breaking down expenses for both the buyer and the seller.

What’s Included in a Closing Disclosure?

1. Buyer and Seller Sections:

   • Both sides start with the same total at the top (sale price) and bottom (final amount owed or received).
   • The middle section details specific costs for each party.

2. Common Seller Costs:

   • Brokerage Fees: Commission charged for the sale.
   • Marketing Fees: Costs for advertising and promotion.
   • Property Taxes: Prorated to the closing date.
   • Transfer Taxes/Revenue Stamps: $1.60 per $1,000 of the sale price.
   • Attorney Fees: For title cleanup, deed preparation, or other legal services.
   • Abstracting Fees: Updating and verifying property ownership records.

3. Other Potential Costs:

   • Title Opinions: Legal review of the property title.
   • Banking Fees: Origination or other loan-related charges for buyers.

Why It’s Important

The Closing Disclosure ensures all parties fully understand the financial breakdown of the transaction. It’s a legally required document for transparency and accuracy.

Key Takeaways

1. A Closing Disclosure lists all costs involved in the transaction for both buyer and seller.
2. Sellers typically see charges for brokerage, marketing, taxes, and legal fees.
3. Transparency ensures that both parties know exactly what they owe or will receive.

For expert guidance and a seamless closing process, contact David Whitaker – Iowa Land Guy for professional farmland services!

David Whitaker | Iowa Land Guy