Closing Costs
A complete breakdown of who pays what at closing, county-by-county customs, and how to negotiate closing cost responsibilities.
Total closing costs in a Florida real estate transaction typically range from 6-10% of the sale price when you combine what the buyer and seller each pay. The seller's share usually runs 6-8% (including agent commissions), while the buyer's share runs 2-5% (including lender fees).
Unlike some states where closing cost responsibilities are codified in law, Florida relies on local custom and contract negotiation. What the seller pays in Broward County may differ from what the seller pays in Duval County. The standard Florida Realtors/Florida Bar contract provides a framework, but every line item is negotiable.
Real estate commissions (5-6% of sale price). This is by far the largest closing cost for sellers. The listing commission is split between the listing agent's brokerage and the buyer's agent's brokerage. On a $400,000 sale, commissions total $20,000-$24,000. Note: since the 2024 NAR settlement, buyer agent compensation is negotiated separately and may not automatically come from the seller's side.
Documentary stamp tax on the deed ($7.00 per $1,000). On a $400,000 sale, this is $2,800. In Miami-Dade County, the combined rate is $10.50 per $1,000 ($4,200 on a $400,000 sale). This is almost always the seller's responsibility.
Title insurance (owner's policy). In most Florida counties, the seller pays for the owner's title insurance policy. This protects the buyer against title defects. Cost is based on the sale price and regulated by the Florida Office of Insurance Regulation - approximately $5.75 per $1,000 for the first $100,000, then $5.00 per $1,000 above that. On a $400,000 sale, the premium is approximately $1,575-$2,075.
Prorated property taxes. The seller pays property taxes for the portion of the year they owned the property. If you close on June 30, you owe roughly half the annual tax bill. This is calculated on the closing disclosure and credited to the buyer.
HOA/condo estoppel letter. $250-$500. Required to confirm what the seller owes the association.
Mortgage payoff. Your existing mortgage balance plus any per-diem interest through the closing date.
Municipal lien search. $150-$250. Confirms no outstanding code violations or municipal liens.
Loan origination fees (0.5-1% of loan amount). Charged by the lender for processing the mortgage.
Appraisal fee ($400-$600). Required by the lender to verify the property value supports the loan amount.
Documentary stamp tax on the mortgage note ($3.50 per $1,000). Calculated on the loan amount, not the sale price.
Intangible tax on the mortgage ($2.00 per $1,000). Also calculated on the loan amount.
Recording fees ($50-$200). Charged by the county to record the deed and mortgage in the Official Records.
Title search and exam ($200-$400). The cost of searching county records for liens, judgments, and encumbrances.
Survey ($350-$600). Not always required, but many lenders and title companies require a current survey.
Home inspection ($300-$500). Not technically a closing cost, but a standard buyer expense during the transaction.
Homeowner's insurance (first year premium). Required by the lender. In Florida, this averages $4,200-$6,800 annually.
Prepaid items (escrow). Lenders require escrow deposits for property taxes and insurance, typically 2-4 months of each.
The biggest variation in Florida closing customs involves who pays for the owner's title insurance policy and who selects the closing agent:
Seller pays title insurance (most common): Broward, Miami-Dade, Palm Beach, Hillsborough, Pinellas, Manatee, Sarasota, Lee, Collier, Charlotte, Brevard, Indian River, St. Lucie, Martin. In these counties, the seller traditionally pays for the owner's title insurance policy and selects the closing agent/title company.
Buyer pays title insurance: Duval, St. Johns, Clay, Nassau, Volusia, Alachua, Escambia, Okaloosa, Bay, Leon. In these North Florida counties, the buyer traditionally pays for title insurance and selects the title company.
Split or negotiable: Orange, Osceola, Seminole, Lake, Polk, Pasco. In Central Florida, the custom varies by transaction and is more commonly negotiated.
Remember: these are customs, not laws. Everything is negotiable in the purchase contract. But going against local custom may create friction with the other party.
When you sell to a cash buyer like OneCashOffer, closing costs are dramatically simplified:
Total seller closing costs in a cash sale typically run 1-2% of the sale price compared to 6-8% in a traditional MLS sale. The reduced cost is one reason a cash offer at a modest discount can produce comparable or better net proceeds than a full-price MLS sale.
Seller closing costs in a traditional MLS sale typically total 6-8% of the sale price, including agent commissions (5-6%), documentary stamps (0.7%), title insurance (0.4-0.5%), and prorated taxes. On a $400,000 sale, expect $24,000-$32,000 in total seller costs.
Both the buyer and seller pay closing costs, but different ones. The seller typically pays agent commissions, documentary stamps on the deed, title insurance (in most counties), and prorated taxes. The buyer pays lender fees, mortgage taxes, and prepaid items.
It depends on the county. In South Florida and most of the Gulf Coast, the seller pays. In Jacksonville, North Florida, and parts of the Panhandle, the buyer pays. In Central Florida, it is commonly negotiated.