Melanie Dittmayer Logo

FLORIDA CLOSING COSTS


 

Title Insurance: Local customs and market pracices vary by county in Florida as to who pays Owner's Title Insurance and title search fees. Many fees are based on contractual agreements with parties.

SELLER EXPENSES

♦ Title search – Research the title in the public records to verify ownership, that title is clear and that no liens or outstanding claims are tied to the property.

♦ Closing fee – Covers all administrative services provided to clear and report all issues and requirements with all key players in the transaction.

♦ Owner’s Title Insurance policy – Insures the new owner has clear title and ownership. Typically paid for by the seller for the benefit and assurance to the buyer.

♦ Real estate sales commission – Fees paid to the Realtors® for their services

♦ Payoff of existing mortgage(s)

♦ Home warranty (if offered by seller)

♦ Homeowner’s Association Estoppel Fee (HOA pay-off statement)

♦ Homeowner’s Association Dues prorated to date of closing

♦ Taxes prorated to date of closing – An adjustment to ensure that both the seller and the buyer pay their share of the annual property taxes for the time they owned the property.

♦ Doc stamps on deed 0.7% based on sales price – charges by local government entities to record the transfer of property and make it matter of public record.

♦ Lender fees, if applicable and specific charges exists

BUYER EXPENSES

♦ Simultaneous issue of Lender Title Policy – The buyer’s new lender requires a Lender’s Title Policy to protect their rights in the property. This is a separate policy from the Owner’s Title Policy (protecting separate rights of the Owner.) The pricing is significantly discounted for the Buyer when an Owner’s Policy is “simultaneously” issued during the same transaction.

♦ Endorsement charges to Lender’s Title Policy – Most Lenders require additional insurance coverage’s know as endorsements as a condition of the loan to further protect their interests.
Closing fee – Covers all administrative services provided to clear and report all issues and requirements with all key players in the transaction.

♦ Survey

♦ Termite inspection

♦ Home inspection

♦ Homeowners and/or Condominium Association dues and transfer fee (when applicable) – This has become a big issue over the last few years with the challenging economy and housing markets. Many HOAs now charge fees to transfer ownership and it is absolutely critical to confirm amounts paid and due, if any, from the seller to the Homeowner’s or Condo Association.

♦ 1st year homeowners’ insurance and flood insurance (when applicable)

♦ Recording fees for deed $10.00 first page; $8.50 each additional page and total recording of mortgage at approximately $180. These are charges by local government entities to record the transfer of property and make it matter of public record.

♦ Doc stamps on mortgage $.35 per $100 based on mortgage amount

♦ Intangible tax on mortgage $.002 x mortgage amount

CUSTOMARY LENDER COSTS AND FEES

Work closely with your lender on these costs and other charges they may require or combine. The lender’s good faith estimate for all cost incurred on a new mortgage is a great place to start.

♦ Prepaid interest – day of closing through the end of month

♦ Loan origination fees

♦ Points – Money paid by a borrower to the lender in exchange for a lower interest rate

♦ Credit report

♦ Appraisal

♦ Tax service

♦ Underwriting

♦ Document preparation

♦ Private Mortgage Insurance (PMI), if applicable and required

♦ Flood certification

Information provided by  

Stewart Title