Expected Seller Closing Costs
Customary Seller Closing Fees and Expenses When Selling A Home In Florida
- Pre-Listing Home Inspection - Although not required, sellers sometimes get a home inspection before listing their home to avoid surprises during the transaction. Regardless of how long you’ve lived in your home or how old it is, there could be unknown issues lurking under the surface that could derail a sale. $250-$350
- Documentary stamp taxes (otherwise referred to transfer taxes) on the deed, which are $.70 center for each $100 of consideration paid for the property (e.g., $100,000 sales price = $700 documentary stamp tax)
- Real estate commission, per Listing Agreement
- Estoppel/Approval fees charged by an applicable HOA/Condominium association
- Pro-rated property taxes (calculated from January 1 to the day before closing)
- Payoff fees to Seller's lender(s)
- The cost of correcting any title related defects/issues
- The cost to remedy any survey related issues, such as encroachments
Expenses that can be negotiated to either Buyer or Seller
- Owner's title insurance policy
- Title search fees
- Municipal lien search fees
- Closing fees
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.
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). Prior to closing be prepared to provide instructions to the closing agent how you would like to receive your disbursement. You can receive a check or you can have the funds wired directly to your bank account.