Expected Buyer Closing Costs
Customary Closing Fees and Expenses When Buying A Home In Florida
- Owners title insurance policy, title search fees, municipal lien search fees, closing fees (provided by closing agent and are negotiable items)
- Recording fees for the deed and mortgage (provided by closing agent if financing is to be obtained), which are currently $10.00 for the first page and $8.50 for each additional page
- Documentary stamps on any mortgage (if financing is obtained) which are $.35 cents for each $100.00 borrowed
- Intangible tax on the mortgage (provided by your lender if financing is obtained), which is $.20 cents for each $100 borrowed
- Lender's title insurance policy and endorsements to the lender's title insurance policy (provided by your lender if financing is obtained)
- Any other lender related expenses (provided by your lender if financing is obtained)
- Survey of the property to be purchased (unless a condominium, in which no survey is required) $350.00 - $450.00
- Inspections which can include home inspection, termite and pest inspection, mold inspection, radon testing, mold testing, roof inspection, septic system inspection, pool equipment inspection $350.00 - $650.00+
Expenses that can be negotiated to either Buyer or Seller
- Owner's title insurance policy
- Title search fees
- Municipal lien search fees
- Closing Fees
The Buyer should consult with their attorney to determine property titling on the deed well in advance of the closing. This important item could have significant legal, tax and estate planning repercussions down the road.
If a party to the transaction is using an existing power of attorney, a copy should be delivered to the closing/title agent as soon as possible to determine if it is a valid and/or otherwise meets Florida's (and lender's) requirements. Many do not, and need to be re-executed, which can take time and cause closing delays.
When dealing with property in which one or more of the record owners is deceased, do not assume that the party with whom you are dealing has proper authority to deal with the property without a thorough investigation. In many cases they do not, which can
lead to costly and time consuming delays.
A Buyer may be able to rely on prior survey instead of purchasing a new one, if no changes have been made to the property and it is not considered outdated. This can save the Buyer closing costs. Please check with your closing/title agent for review and approval.
If the Seller is considered a "Foreign Person" as defined by FIRPTA, Section 1445 of the Internal Revenue Code, FIRPTA may require a Buyer to withhold up to 15% of the Seller's gross proceeds unless an exemption is available or withholding certificate is provided in advance of closing. FIRPTA issues should be addressed and resolved well in advance of the closing to avoid delays.
Notify the closing agent if the closing is going to be a mail away as early in the process as possible to avoid delays, particularly when dealing with out of state or foreign sellers.
Make certain the EXACT legal name of all parties appear on the contract (particularly ALL owners of the property), and if you plan to change the Buyer at any time, make the contract assignable. Try to avoid last minute changes to the Buyer(s).
A Buyer should receive and read all Homeowner and Condominium Association documents either before executing a Purchase and Sale Agreement or immediately thereafter as applicable, and consult with their attorney if they have any questions. These instruments contain critical information regarding the property and how it can be used.
Buyers obtaining financing should remain in close contact with their lender throughout the process as changes in federal law now require the lender to deliver certain documents (i.e. the closing disclosure) to the Buyer in advance of the closing in order for the closing to take place.
Prior to closing, be prepared to wire closing funds to your closing agent. Checks are not accepted due to fraud protection issues and the necessity to have "cleared funds" prior to closing.