Capital, The (Newspaper) - February 6, 1986, Annapolis, Maryland r fee9 adds to cost of Second in a series. By DEBRA VIADERO Business Writer Lenders call it the inspection TO it's the infamous or inspection. The one among hundreds that can crop up on your settlement statement when yon buy a is not the biggest of closing expenses. But it's a controversial one. And those who have studied the issue said the-inspection fee is one of the little items that combine to put Maryland's closing costs among the highest in the nation. The as much as is levied by Classifie Circulatn News Business 268-5000 lenders for the time and trouble they take to drive by the house that you are buying and make sure it's there. kind of another way of adding profits to their said Marc a staff person on the Governor's Task Force on Real Property Closing Costs. In some the charge is justified When the home is newly constructed or repairs are being made on the the lender has to make sure the work was properly done. In the charge is the task force found. The lender's inspection fee is item number 805 on the settlement sheets printed by CLOSING COSTS HOME BUYERS NICKLE-AND-DIMED federal Department of Housing and Urban Development. In the sheet contains numbered items. That's enough space for differ- ent although few settlements use all or even half of the spaces. Twenty years many of those charges and practices were non-existent in this said veteran title attorneys. Borrowers did not have to pre-pay interest on their mort- gages and lender inspection and courier fees were a rarity. Lenders pointed out that some new prac- designed to protect the have come about as the size of down payments shrank. Where a 20 percent down payment was once the rule of buyers can buy a home now with as little as 5 percent or no money down. Other charges are there because of tradi- tion or market forces Title for is not required under Maryland law as it is in other states. But no prudent lender will give a mortgage without it For the the biggest overall costs are state and county transfer and recorda- tion taxes. Those taxes also are referred to ic as documentary stamps. is the most outrageous as far as I'm concerned. Everything else is nickel-and- said Alan president of Severn Savings Association in Annapolis. be the largest single cost of closing is the real estate broker's commis- sion. The fee averages 8 or 7 percent of the purchase price of the house. Since the seller picks it few debates on closing costs address those The custom in this county is for the buyer and the seller to split those one-time taxes. the taxes make up 16.2 percent of the closing costs involved in the average Maryland real estate transaction. And this is on Page Col. Tomorrow's Gray wet For see page 11. VOL. Cl NO. 31 1986 25 Cents GOOD PONT FORGET Costumed classical and popular a magic show and traditional foods and beverages will be featured at the three-day Italian Festival opening at 11 a.m. tomorrow at the National Guard Armory on Willow Street. AREA A proposed school budget includes a 6 percent raise for employees. Page 25. ARUNDEL DIGEST The city wants a bigger pen- alty for tax scofflaws. Page 25. OSCARS Enter The Capital's Pick the Oscars Contest Page 13. Color and BtTERTAINMENT Tne Naval Academy Glee dab will present 'The Music DINING OUT Hiddleton's is a delightful surprise. Page 15. STATE A bin requiring criminal background checks of people who care for children is re- vised. Page 4. NATION President Ferdinand E. Mar. cos put the Philippine armed forces on today. Page 2. A presidential commission convenes to study the shuttle explosion. Page 3. BULLETS The Celtics beat Pxgett NAVY The Midshipmen prepare for a key road game. Page 35. PEOPLE Sylvester Stalleae and his Brtfttte got mul- tiple nominations for bad act- Ing from The Golden Raspberry Award Foundation. Toe Sixth Annual Rattle Award nominations were timed to coincide with yester- day's Oscar announcement is up for worst actor to and Miss Nielsen won nomina- as worst actress in want svpyui-Ung ae- traai ta and worst aav actress to LOTTERY NuBDtrs drawn INDEX fttoadir pates. 94 .4145 a 14-11 11 11 .11 Quiet Waters o Annexation option offered By KEVIN DBAWBAUGH Staff Writer Annapolis would agree not to an- nex Quiet Waters Farm if it can annex Parole and the Annapolis Mall under a annexa- tion proposed today by Ald- erman John R. Hammond. At a press conference this morn- ing. Hammond proposed that the city annex the Parole Plaza Shop- ping the Nationwide com- the Annapolis Mall restaurant and fts Jenifer Road and annexation certain small Forest Drive properties now tocatjed.in Anae Arundel County. In city would agree to rejeclajae Ipflopowd Quiet Waters which is strongly opposed by the county gov- ernmeat and many residents living near the Qnist Waters property. In the city would pledge to subject future annexation proposals to City Council and County Council Hammond said. Only City Council review is now needed for along with approval from residents of the land to be annexed. proposal would not only al- low Quiet Waters Farm to remain in the bat at the same time would allow a significant expansion of the dty'B tax base and the poten- tial for growth in its tax base. the city could no longer undermine long-range county by new Hammond said. The alderman's proposal uses the city's considerable leverage in the Quiet Waters struggle to attempt a forced tradeoff with the county. may be some things that I haven't even thought of. it's just a took for Ham- mond said. Mayor Dennis CaUaaaa this morn- ing said the ideas has but 'Is probably because it is too specific. would prefer that the City Council present a united he said. County Executive 0. James Ligbtaiser could not be reached this morning for comment en the propos- al City and county interests collided recently when Continental Invest- on Page CeL FOGGY FIGURE Ptwloby J Yesterday's fog and mist didn't stop Midshipman 3rd Class Robert Curran from taking his dairy Jog near the seawall at the Naval Academy. The gloomy weather Is expected continue through the weekend. For the extended see pepa 11. Connell begins jail term today By JOANNA RAMEY Staff Writer Former state Sen. Jerome Connell and his law partner Lloyd E. Clinton Jr. are due to report today at a Pennsylvania prison to begin serving their sentences for federal income tax evasion The two Pasadena residents are eager to get their year-and-a-day prison terms over according to their attorneys. Connell and Clinton could have asked that they remain free on bond while appealing their convictions. a power in Anne Arundel County government for 20 and his wW be eHgffife for parole la torn from the Allenwood Federal Prison authorities said. not unusual when the sen- tence isn't going to be exorbitant to put it behind said Paul R. attorney for the four-term Democrat wants to wait around two waiting for an uncertain end to an asked Clinton's law- T. Joseph Touhey A U.S District Court jury convict- ed Connell and Clinton Oct 21 on six counts each of income-tax evasion Prosecutors had argued that the attorneys failed to declare in client fees to avoid paying in taxes. Judge James R. Miller Jr fined the attorneys and ordered they begin their year-and-a-day prison terms today In the federal court only inmates sentenced to more than one year can be released early for good behavior After being sentenced Dec Con- nell was forced by Maryland law to relinquish his District 31 Senate seat. He remains suspended from the General Assembly pending the out- come of his appeal. Should his con- qverturagcl Camay woaU Connell and both in their are basing their appeal on the way the Internal Revenue Service conducted their investigation. The law partners have claimed that the prosecution used unrelated information found in client files to intimidate potential ac- cording to earlier interviews The attorneys never contested that on Page Col. Inside Page 25. Belt is backed Buckle-up bill gains support By PAT RIVIERE Staff Writer Supporters of a mandatory seat belt law yesterday brought out the big guns in an attempt to win ap- proval from the tough House Judi- ciary Committee. Although the committee last year killed a mandatory seat belt bill by a 16-4 some say chances of win- ning committee approval this year may be greater Del. John a committee member who voted against the legislation last said be would support the bill this year if it contained his amendment The bill that has already passed the Senate does contain Leo- pold's requiring the in- surance commissioner to report to the legislature on the bill's effect on insurance rates The committee beard testimony yesterday on four House bills and one Senate bill. All are similar and would require the driver and the front-seat passenger next to the door to wear seat belts Committee Chairman who opposes the mandatory said he believes a committee vote may be closer this year House Speaker Benjamin L Car D-Baltlmore Comptroller Louis Ms Wheelchair and nurses and doctors from the Shock-Trauma Center at University Hospital in Baltimore and The Johns Hopkins Hospital were among those who testified yesterday in support of the mandatory law Is beyond dispute that the use of seat belts will prevent will prevent Cardin told the com- mittee For the second year Cardin is one of the co-sponsors of a House bill requiring Maryland oa Page Col. Local taxes mercy of budget By BOB MITCHELL SUff Writer Per in Amu commuters in Odentoo tod federal workers throughout the Pres- ident Reagu'i proposed billion IstT budget cooM mean Mg changes. The spending blueprint aaveOed yesterday caQi for massive cuts in domialk progrirni tod an increase to dafteM spending but no tax tacresK to pay tor tt Detent of domestic programs vonW be ehntiaaterf ty the budget rtistof the specter ef lay- tor ef the eooaty's .......SB... Aattalt a_ai eaib tor the mental Protection Agency funds for cleaning up the Chesapeake Bay and propusu to raise salaries for mili- tary personnel on active duty The proposed budget must be ap- proved by Congress before It be- comes law. No Reagan budget proposal has gone without major Congress Tbe cots la the Reagan budget as pert of an effort to reduce tfct federal deficit to billion in 1117 as required by the Gramm- Endmaa-BoUingt bilificed-bodfet law. If Congress and the president te agree on s speodtag plan that mists that deflcM taea an At said Michael Washington. liaison for the state Depart- ment of Human Resources is most certainly on the chopping block. Grimm-Rnd- man-Boilings puts the pressure on Congress to come to terms with these appropriations like it never has Among the ami facing cult are JOES The btidcet proposal calls for fllminatton m numeroas domestic such it the Eco- nomic Development tefil atsteUDce to the poor and ttae Interstate Con Connisstoe. Dean of others an cut beet. Taat weld raamtts ia iayefls far ttvtaf to IMPACT OF BUDGET ON COUNTY JOBS Domestic cuts could force layoffs of some civilian federal workers De- fense cuts could coat jobs of military employees and defense contract workers TAXES No tax Increase ia planned DEFENSE A 12 percent Including 4 percent raise BAY CLEANUP mNHon In funds for damning up the bay fmejns. Sewawaja ooftttructton grants wW be phased out. AIITRAK Elimination of federal subsidies for passenger railroad service SOCIAL SERVICES Cuts for Aid to Families with Dependent some AFDC recipients must for Jobs. Also cuts in Community Actton Agency Mock grants EDUCATION 1 million fewer ooftaga students would gat some form of federal aid.