Guide
Florida Closing Costs: Who Pays What When You Buy or Sell a Home
In Florida the sales contract decides who pays each closing cost, but custom is fairly consistent: the seller usually pays the documentary stamp tax on the deed, the buyer pays the lender’s costs and the taxes on a mortgage, and who pays for the owner’s title policy depends on the county. Your title company can give you a written estimate before closing.
By TitleMagic · Published · 6 min read
Costs the seller usually pays
- Documentary stamp tax on the deed: $0.70 for every $100 of the price (see the doc stamp guide for examples)
- Real estate commissions, as agreed in the listing agreement
- Payoff of the seller’s mortgage and any liens, plus any payoff-related fees
- The owner’s title insurance policy, in many (not all) Florida counties; this is a local custom and the contract can change it
- Homeowners’ association or condominium fees for estoppel letters and transfers, where they apply
- Property taxes and association dues for the days the seller owned the home this year (these are prorated, not extra)
Costs the buyer usually pays
- The lender’s title insurance policy, when the buyer finances
- Documentary stamp tax on the mortgage note: $0.35 for every $100 borrowed
- Intangible tax on the mortgage: 0.2% of the loan amount, paid once
- Recording fees for the deed and the mortgage
- Lender fees, appraisal, inspection and survey
- Prepaid items such as homeowners insurance and the starting balance of the escrow account, plus the buyer’s share of prorated taxes and association dues
Costs that vary by county and by contract
Who pays for the owner’s title policy is the best-known difference between Florida counties. In some counties it is traditionally the seller and in others the buyer, and a contract can say either. The settlement or closing fee is also negotiated and can be split or paid by one side.
Miami-Dade County has its own documentary stamp rates on deeds, including a county surtax on most property other than single-family homes, so a Miami-Dade estimate is different from the rest of the state. Ask your closer how it applies to a condominium or townhome.
Why two title companies can quote different totals
In Florida the title insurance premium itself is set by state rule, so the premium for the same price and policy is the same at every agency. What differs between title companies are their own fees: settlement or closing, search and examination, endorsement handling, courier and similar charges. Compare the whole estimate, not only the premium. The title insurance rates guide explains the premium schedule.
How to get an estimate before you sign
Ask the title company handling the closing for a written estimate as soon as you have a contract. It should list the title premium, each tax, recording fees and the company’s own fees, and say which side pays each one. An estimate is not the final settlement statement, which is prepared just before closing.
Frequently asked questions
Who pays documentary stamps in Florida?
By custom the seller pays the documentary stamp tax on the deed ($0.70 per $100 of the price) and the buyer pays the stamp tax and intangible tax on a new mortgage ($0.35 per $100 and 0.2% of the loan). The contract can assign them differently.
Who pays for the owner’s title insurance in Florida?
It depends on the county. In many counties the seller customarily pays; in others the buyer does. The sales contract controls, so check it before assuming.
Are closing costs the same at every Florida title company?
The title insurance premium is set by state rule and is the same, but each company sets its own settlement, search and other fees, so totals can differ.
Is a closing cost estimate the final number?
No. An estimate uses the information available early on. The final numbers appear on the settlement statement prepared before closing.
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