Buyer Closing Costs

In Florida, the bulk of the closing costs are paid by the seller (title insurance policy and real estate commissions). But there are some costs buyers need to be aware of.

Here is a summary of estimated closing costs for a typical residential transaction:

• Recording of Deed: $60
• Pro-ration of property taxes for the calendar year (annual taxes are paid in arrears in Florida)
• Pro-ration of dues (HOA fees or similar)
• Property boundaries survey (if required by you or your lender): $200
• Professional property inspection: $350
• Appraisal, if required by you or your lender: $300
• Miscellaneous other fees: $150 to $300
• Attorney Fees, if required by you or your lender: variable amount

There are additional fees if you are taking out a mortgage:

• Documentary stamp on mortgage: 0.35 per $100 financed (e.g., on a mortgage of $250,000 the doc stamps are $875)
• Recording of Mortgage: $60
• Intangible tax on mortgage: .002 on mortgage amount (e.g., $500 on a $250,000 mortgage)
• Fees charged by your lender (processing fees, points, and so on)

The above estimates are a good guideline, but be sure to work with your agent on a buyer’s “net sheet” before writing a purchase contract to determine your specific costs. Also, a week or a few days before closing, the title company will provide you a settlement statement (called a HUD) that states all fees, to whom they are paid, and your final amount due at closing. Both you and your agent need to review this carefully prior to closing.