Florida closing costs follow state rules and local customs that surprise many relocating buyers. Knowing which costs are set by statute, which are set by your contract, and which are negotiable helps you budget accurately and avoid surprises at the closing table. The figures below explain how the costs work; your lender's Loan Estimate and your title company's estimate give the actual numbers for your deal.
Title insurance. Florida title insurance premiums are set by a state-promulgated rate schedule. On a $1,000,000 purchase, the owner's policy premium under that schedule works out to $5,075. Who pays for it is decided in the contract. In Marion County, the seller commonly pays for the owner's policy and chooses the closing agent, but the contract controls, so check the box selected on yours. If you are financing, you will pay for the lender's policy, which is typically much less when issued at the same time as the owner's policy, along with endorsements and title search and settlement fees.
Documentary stamp tax on the deed. Florida charges $0.70 per $100 of the sale price on the deed. On a $1,000,000 sale, that is $7,000. Under the standard Florida contract, the seller customarily pays it.
Taxes on the mortgage. If you finance, Florida charges documentary stamp tax on the note at $0.35 per $100 of the loan amount and intangible tax at 0.2 percent of the loan amount. On a $700,000 loan, that is $2,450 plus $1,400, for a total of $3,850. These are statutory and paid by the borrower.
Lender charges. Expect an appraisal, credit report, flood certification, and underwriting and processing fees, plus any points you choose to pay to lower your rate. Complex luxury and acreage appraisals often cost more than standard ones. Compare Loan Estimates from more than one lender; lender fees are negotiable and vary.
Survey and inspections. Many buyers order a new survey, especially on acreage. Inspections are usually paid outside closing during your inspection period.
Prepaids and escrows. If you have an escrow account, expect to prepay your first year of homeowners insurance and fund an initial escrow deposit for taxes and insurance. Florida property taxes are paid in arrears, so they are prorated between buyer and seller at closing. HOA dues are prorated, and some communities charge a capital contribution or transfer fee to the buyer.
Cash buyers skip the lender costs and mortgage taxes, which reduces the total considerably.
Getting to a reliable budget is straightforward. Ask your lender for a Loan Estimate early, ask the title company for a buyer's estimate once you are under contract, and read your contract to confirm who pays for title and closing services. Your Closing Disclosure, which you receive at least three business days before closing on most financed purchases, shows the final figures. If any line is unclear, ask the closing agent or a real estate attorney before you sign.
