Closing costs in Florida and who pays what
Short answer
A buyer with a loan usually pays 2% to 5% of the price in closing costs (lender fees, title, loan taxes, insurance and escrow deposits). The seller normally pays the documentary stamp tax on the deed, $0.70 per $100 of the price, plus the agreed agent compensation and other fees.
What the buyer usually pays
- Lender fees and the appraisal.
- The lender's title insurance policy.
- Documentary stamp tax on the note: $0.35 per $100 of the loan.
- Intangible tax on the mortgage: 0.2% of the loan.
- County recording fees.
- Prepaids: the first year of insurance and an escrow deposit for taxes and insurance.
What the seller usually pays
- Documentary stamp tax on the deed: $0.70 per $100 of the sale price.
- The agent compensation agreed in writing.
- In much of Central Florida, by custom, the owner's title policy. It's negotiable in the contract.
- Any liens that must be paid off to deliver clear title.
Property taxes are prorated
Florida property taxes are paid at the end of the year; bills come out in November. At closing, the seller credits the buyer for the seller's share of the year, and the buyer pays the full bill when it arrives.
A worked example
A $300,000 home with a $285,000 loan:
- Deed stamps (seller): $2,100.
- Note stamps (buyer): $997.50.
- Intangible tax (buyer): $570.
Other charges depend on the lender, title company and insurance. By law you get a Loan Estimate within a few days of applying, and the Closing Disclosure three business days before closing.
It's negotiable
Buyers can ask the seller to cover part of the closing costs (concessions), within the loan's limits. When many homes are for sale, it's a common request.