Statutory costs are expenses you would have to pay to state and local agencies
even if you paid cash for the house and did not need to take out a mortgage.
They include the following:
Transfer taxes are required by some localities to transfer
the title and deed from the seller to you.
Recording fees for deed pay for the county clerk to record
the deed and mortgage and change the property tax billing.
Pro-rated taxes such as school taxes and municipal taxes may have
to be split between you and the seller because they are due at different times
of the year. For example, if taxes are due in October and you close in August,
you would owe taxes for 2 months while the seller would owe taxes for the other
10 months. Prorated taxes usually are paid based on the number of days (not
months) of ownership. Some lenders may require you to set up an escrow account to
cover these bills. If your lender does not require an escrow account, you may
want to set up a special account on your own to make sure you have money set
aside for these important, and large, bills.
Other state and local fees can include mortgage taxes levied
by states as well as other local fees.