Closing Cost Estimate Information
Closing costs in Florida are divided between the buyer and the seller according to local custom and contract negotiation. Common buyer closing costs include: title insurance premiums (owner's and lender's policies), loan origination fees and discount points, appraisal and survey fees, recording fees for the deed and mortgage, intangible tax on the mortgage, attorney fees, credit report and flood certification fees, prepaid insurance, taxes, and interest, and escrow reserves. Common seller closing costs include: documentary stamp tax on the deed, broker commissions, title search and examination fees, deed preparation, mortgage satisfaction fees, and prorations (taxes, assessments, and HOA fees). Total closing costs in Florida typically range from 2-5% of the purchase price for buyers and 6-8% for sellers (including commissions).
Florida Legal Definition
Florida closing costs include several state-specific charges: documentary stamp tax on the deed (§201.02 at $0.70 per $100 of the purchase price), documentary stamp tax on the mortgage (§201.08 at $0.35 per $100 of the mortgage amount), intangible tax on the mortgage (§199.133 at $0.002 per $1.00 of the mortgage amount), title insurance premiums (promulgated by the Office of Insurance Regulation), and recording fees (§28.24 at $10 for the first page and $8.50 for each additional page). Under the Florida Bar/FAR contract, the allocation of closing costs is specified in the contract (the seller typically pays: doc stamps on the deed, title search, and their attorney fees; the buyer typically pays: lender's title insurance, recording fees, and their attorney fees). Who pays the owner's title insurance premium varies by county custom.
How It's Used in Practice
In practice, attorneys prepare closing cost estimates early in the transaction to set expectations. The attorney: calculates the documentary stamp tax and intangible tax based on the purchase price and mortgage amount, estimates the title insurance premiums using the promulgated rate schedule, estimates the recording fees based on document lengths, calculates prorations for property taxes, HOA/condo assessments, and rents (if applicable), and identifies any transaction-specific costs (special assessment payoffs, lien satisfactions, and survey fees). The closing cost estimate is refined as the transaction progresses and becomes the actual Closing Disclosure (for buyer-financed transactions under TRID) or closing statement (for cash transactions). The attorney reviews the final closing statement for accuracy before closing.
Key Takeaways
- Florida closing costs: 2-5% buyer, 6-8% seller (including commissions).
- Doc stamps on deed: $0.70/$100. Doc stamps on mortgage: $0.35/$100.
- Intangible tax on mortgage: $0.002/$1.00.
- Title insurance premiums set by Office of Insurance Regulation.
- Allocation follows local custom and contract negotiation.
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Florida Law Reference
12 U.S.C. § 2601 et seq. (RESPA); Fla. Stat. § 627.7711
Real estate closings in Florida are governed by federal RESPA requirements and state title insurance regulations. Florida is a "title state" where closings are typically handled by title companies or attorneys.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC