Front Foot Benefit Charge: A Front Foot Benefit Charge is assessed on most properties serviced by the Washington Suburban Sanitation Commission in Montgomery County and Prince George's County, Maryland. The assessment is paid with the property taxes, but unlike property taxes, it is paid for the calendar year (January 1- December 31). The assessment is designed to cover the costs of constructing and maintaining water and sewer lines.

Water Escrow: A water escrow is held by Monocacy Title to pay the seller's final water bill. The seller needs to have the final water bill sent to Monocacy Title. Once the bill is received, it will be promptly paid and any excess will be returned to the seller. A water escrow is necessary because in many places the water utility can place a lien on the property if the bill goes unpaid.

Lien Release Procurement/Record: The current mortage that the seller has constitutes a lien on the property. This lien must be released in the county land records at the courthouse. As part of our service in assuring clear title, Monocacy Title will prepare, obtain and record the release.

L. Settlement Charges: Settlement charges is the general category of various costs which must be incurred to buy, sell, or refinance a property.

Commission: Commission is usually a percentage of the sales price, paid by the seller, to a real estate agent (broker) as compensation for services rendered.

Items Payable in Connection with Loan: These are typically items that the lender requires to be paid prior to or at the time of the loan closing. These fees can vary from case to case and lender to lender.

Appraisal Fee: The fee charged by an appraiser to produce a written report expressing his or her opinion as to the value of the property and the reasoning behind that opinion.

Credit Report: The fee charged by a credit reporting agency or company to provide a written report on the borrower's credit history.

Document Preparation: A fee charged by the lender or lender's agent for preparing the loan documents.

Tax Service Fee: A one time fee charged by the lender's agent for verifying the property tax status on the property and paying the property taxes out of the borrower's escrow account as they come due.

Flood Certification Fee: A one time fee charged by the lender or the lender's agent to determine whether the property is located in a flood zone for purposes of ascertaining whether flood insurance must be purchased by the borrower.

Loan Origination Fee: This fee covers the lender's administrative costs in processing the loan. Often expressed as a percentage of the loan, the fee will vary among lenders.

Loan Discount: Often called 'points', a loan discount is a one-time charge used to adjust the yield on the loan to what market conditions demand. It is used to offset constraints placed on the yield by State or Federal regulations. Each 'point' is equal to one percent of the mortgage amount.

Items Required by Lender to be Paid in Advance: You may be required by the lender to prepay certain items, such as interest, mortgage insurance premium and hazard insurance premium, at the time of settlement

Mortgage Insurance Premium: Mortgage insurance protects the lender from loss due to payment default by the homeowner. The lender may require you to pay your first premium in advance on the day of the settlement. The premium may cover a specific number of months or a year in advance

Reserves Deposited With Lenders: Escrow funds held in an account by the lender to assure future payment for such recurring items as real estate taxes anbd hazard insurance. You will probably have to pay an initial amount for each of these items to start the reserve account at the time of settlement. A portion of your regular monthly payment will be added to the escrow.

Title Charges: Title charges cover a variety of services performed for handling and supervising the settlement transaction and services related thereto.

Government Recording and Transfer Charges: The borrower usually pays the fees for legally recording the new deed and mortgage (item 1201). These fees, collected when property changes hands or when a mortgage loan is made, may be quite large and are set by state and/or local governments. City, country and/or state tax stamps may have to be purchased as well.

Survey: The lender or the title insurance company may require that a surveyor conduct a property survey to determine the exact location of the house and the lot lines, as well as easements and rights of way. This is a protection to the buyer as well.

Hazard Insurance Premium: The borrower will be required by the lender to have a hazard insurance policy (also called a homeowner's insurance policy) insuring the structure and property against loss or damage. The amount of coverage must equal or exceed the loan amount.

Aggregate Adjustment: An additional debit or credit made by the lender to the borrower's escrow account to keep the account in compliance with federal guidelines governing such accounts.

Messenger/Overnight Delivery: These fees are incurred to transport documents and information between all parties involved in the transaction including but not limited to Monocacy Title, the lender, the real estate agents, the payoff lender, the abstractors, the buyer(s), the seller(s), and any other party necessary to the transaction.

Underwriting Fee: A fee charged by the Lender for underwriting the loan.

P.O.C.: Paid outside closing