What comes out of a seller’s proceeds
- Mortgage and lien payoffs. Every loan or lien recorded against the home is paid off at settlement, out of your proceeds. The exact figure comes from each lender’s written payoff statement, figured to a date. The balance on your monthly statement is usually lower, because interest runs until the loan is paid.
- Commission. Your listing agreement sets it. Type the rate or the dollar amount from your agreement.
- Credits to the buyer. Any amount the contract says you pay toward the buyer’s costs, or agree to give back after the home inspection.
- Transfer and recordation taxes. Recordation tax and state and county transfer taxes are presumed to be shared equally between buyer and seller unless the contract says otherwise. For a sale to a first-time Maryland home buyer who will live in the home: the seller pays the whole state transfer tax (no exception), and the seller pays the whole recordation tax and county transfer tax unless the contract expressly says otherwise. The net sheet works out your share for the counties our calculator covers. Who pays transfer tax in Maryland explains the rule.
- Title and settlement charges. Your share of the settlement fee and other title charges, as the contract and your quote set them. We do not print sample fees on this page. Our instant quote or a call to (410) 768-2300 gives the figure for your sale.
What the net sheet leaves out
- Property tax and association dues shared by date. The current year’s property tax, and any association dues, are usually shared out by date on the settlement statement. Depending on what you have already paid, that can be a charge or a credit to you.
- Nonresident withholding. If you do not live in Maryland, state income tax is generally withheld from your proceeds unless an exemption applies. See nonresident seller withholding.
- Bills and liens you may not know about. Unpaid water and sewer charges, association balances and judgments found in the title search are normally paid from the proceeds.
- Income tax on your gain. Whether you owe tax on the profit is a question for your tax adviser.
Where the real figures come from
The settlement statement lists every charge and credit and who pays it. Compare it with your contract and your listing agreement: a cost the contract gives to the buyer should not be in your column.
Getting your proceeds
We send wire instructions by email, and fraudsters fake them. Before you send your bank details or act on any wiring instructions, call our office at (410) 768-2300, the number on this website, and confirm them by voice. Never use a phone number from an email. Our wire fraud warning explains what to watch for.
How we help
Our settlements are led by attorneys. We show every charge and credit on the settlement statement, pay off the loans and taxes from the proceeds and send the deed for recording in the county where the home is. You can settle at our Glen Burnie office, or we come to you anywhere in Maryland at no extra cost. Selling from outside Maryland? We arrange a remote settlement. Our selling a home page and the seller’s checklist cover the rest of the sale.