Mastering Market Nuances for Seamless Closings
Part 2 of 2

Recording Fees & Requirements


Recording fees and document requirements are highly localized, varying by county. Some counties have strict formatting rules that determine whether a document is recordable, while others require unique calculations to determine the correct recording fees. For example, in some states, recording fees are based on the number of pages, while in others, they are calculated based on the value of the mortgage or property being recorded. Additionally, some jurisdictions require specific margin sizes, font sizes, or ink colors for documents to be accepted. Certain counties may also have restrictions on digital recordings, requiring walk-in recordings for certain transactions. CSS verifies document recordability and calculates these fees on behalf of lenders, ensuring accuracy and compliance with local regulations. By staying up to date on these requirements, CSS helps lenders avoid costly rejections and delays in the recording process.

Mortgage & Transfer Taxes


Mortgage and transfer taxes can be a significant expense, and the rules governing them differ widely. For example, in Maryland, primary residence refinances may qualify for a discount on county mortgage taxes if certain conditions are met. However, Maryland also has some of the highest transfer and recordation taxes in the country with exact amounts varying by county. In New York, Consolidation, Extension and Modification Agreement (CEMA) transactions help borrowers reduce recording taxes, further illustrating the need for localized expertise.

Additionally, some states impose flat transfer tax rates, while others use a tiered system based on the property value. In Pennsylvania, for example, both state and local transfer taxes apply, and the amounts vary by municipality. Some counties and cities levy additional taxes beyond state-mandated amounts, creating even more complexity.

In Florida, documentary stamp taxes are due on deeds and mortgages with different tax rates applying depending on the nature of the transaction. Meanwhile, in Colorado, transfer taxes are generally not imposed at the state level, but some local jurisdictions require payment of a real estate transfer tax. Understanding these variations is critical for ensuring accurate calculations and avoiding unexpected tax liabilities at closing. CSS proactively calculates these costs to prevent surprises and ensure compliance across all jurisdictions.

Closing Practices & Attorney Involvement


Closing practices differ greatly depending on state and even local jurisdiction. In some states—such as North Carolina, South Carolina, Georgia, Delaware, Massachusetts and parts of New York—an attorney must be involved in the closing process. In certain areas, attorneys are also required to sign off on title searches. Additionally, states like Virginia and North Carolina mandate that Deeds of Trust be recorded before funds can be disbursed, adding another layer of complexity to the process. In-person closings are still the norm in other areas, as certain jurisdictions require documents to be physically recorded before disbursement.

Additionally, Ohio still recognizes dower rights, meaning a spouse must sign deeds, mortgages and other documents to relinquish their dower interest in a property. This is an important consideration in transactions involving married individuals, as failure to account for dower rights could delay closing or create title issues down the road.

CSS ensures that all legal and procedural requirements are met seamlessly, working with attorneys, county officials and lenders to facilitate smooth closings regardless of jurisdictional challenges.