Because of the high stakes, States impose certain legal requirements on these treaties to later recall the agreement in the event of a dispute and to ensure that the parties understand the agreement. These requirements are as follows. The types of closing costs and the responsible party vary from state to state, but they typically account for 2-5% of the home`s purchase price. These include taxes and fees related to the transfer of ownership, such as registering the share and paying it to the securities company, which investigates to follow the chain of ownership of the property and ensure that no one has any monetary rights or ownership. The securities company also offers title insurance, which protects against future claims. You must use this Agreement if you (a) are a potential buyer or seller of residential property, (b) wish to define the legal rights of each party to the sale, and (c) state the respective obligations of each party prior to the transfer of ownership….