What are the Closing Costs for Sellers in Florida?

Property buyers in Florida usually must prepare to pay various expenses—on top of the purchase price of the property—including financing costs, lender fees, and transfer taxes on the mortgage. Likewise, selling a property comes with its own costs which, when you factor in Realtor commissions, can range between 5% to 10% of a property’s purchase price. By definition, these costs must generally be paid at closing or else the transaction cannot be completed—so take a moment to learn what they entail and how Marina Title can help.

Closing Costs in Florida – An Introduction 

In a real estate transaction, the closing is the final stage of the process. At this point, the buyer and the seller reunite to sign all required documents and finalize the transfer of property ownership from one party to the other.

Nonetheless, even though the closing may sound like a moment to sign forms, hand over the keys, and move on with obtaining your sale proceeds, it is not so straightforward: both the buyer and the seller share responsibilities relating closing-related fees and expenses.

What Are the Closing Costs for a Seller in Florida? – The Essentials 

Closing costs vary by transaction, both in terms of the amount and what services each side must pay for. All closing costs are negotiable. However, the following represent the most common and universal closing costs sellers must contend with in each property sale.

Real Estate Agent Commissions

In most cases, real estate agent commissions represent the greater percentage of the closing costs paid by sellers. The amount usually ranges between 5% and 6% of the property sales price (typically 2.5% to 3% per agent).

Most real estate transactions involve two agents: one to assist the seller and one to engage with the buyer to purchase the property. At closing, the seller is usually responsible for paying both. Some real estate brokers also charge a processing fee or transaction fee to the seller, typically ranging from $195 to $595. 

Unsettled Debt Owed on the Property 

At closing, the seller is responsible for paying any outstanding amounts owed on the property, such as homeowners’ association fees, property taxes, and utility bills. 

Prorated Property Taxes 

Florida homeowners pay property taxes in arrears, meaning taxes are paid only for the portion of the year the property is owned. Consequently, the title company will prorate the amount owed based on the number of days the seller owns the property. This must be calculated carefully, since what is owed may vary significantly depending on the time of year that the property is sold.

The Settlement Fee (a/k/a Closing Fee)

The settlement fee (a/k/a the closing fee) refers to the amount paid for the services provided by a title and escrow company at closing. Ideally, sellers should hire an attorney-owned company that provides title, escrow, and closing services—all under one roof. Working with an experienced title company will typically result in a settlement fee of around $800 to $900.

Title Search

A title search is a detailed examination of the property to determine whether its title history is clean. During this process, the professional title examiner will search for and identify title defects such as liens, judgments, defects in the chain of title, and recording errors.

An expert title company will also conduct a municipal lien search to identify issues that a standard title examination would be unable to find, such as unrecorded code violations, permit-related issues, and outstanding water/sewer balances.

Typically, a title search will cost around $200 (not including a municipal lien search, which varies in cost depending on the municipality). 

Transfer Taxes

Paid at the local county level when the title agent record the deed to the property, the transfer tax refers to the documentary stamps on the deed. Except for Miami-Dade County, all Florida counties calculate this fee by multiplying $0.70 per $100 paid for the property. In Miami-Dade County, the rate is $0.60 for single-family homes, while the price for other property types is higher.

Need to Prepare for Closing Costs in Florida? – Work with Marina Title Today

The last thing you need when you are about to sell your property is an unpleasant expense. Owned and operated by real estate attorneys, Marina Title offers a wide array of title, escrow, and closing services to accommodate a wide variety of clients. 

We offer title closing services throughout the State of Florida, and we will help provide a clear and accurate accounting of all closing costs to help facilitate a smooth transaction and closing. Waste no time: Contact us today by calling (800) 604-1871 or emailing Info@MarinaTitle.com to learn more about our title and closing services.