Expert: Sue Bernstein - 9/5/2005

Question
I just bought an investment home last week using conventional lending. Where on the settlement sheet(or hud -1 )does it show that I pre-paid landlord insurace to Allstate for the whole year? Why do I still need to pay hazard insurance monthly? When will I receive the title? Where does it show how much I paid for realtor fees and how much the seller paid? Thanks.

Answer
Dear Al,

Your payment of of insurance should be stated with the amount on your closing statement.  If you want to confirm that it is a yearly payment check with your insurance agent.  Usually, it is your lender who requires the Hazard Insurance.  In California one usually receives all the recording documents in about a month of closing.  Usually it is the seller who pays commission so you shouldn't see it on your closing statement.  If there was some agreement where you were splitting those fees then you should see your share.
I hope this helps and good luck with your new investment.

Sue Bernstein