Closing Costs in Florida
What are Closing Costs?
Closing costs are the fees that are associated with a home purchase that are paid at the closing of a real estate transaction. The Closing is the point in time when the title of the property is transferred from the seller to the buyer. The Closing Costs are incurred by either the buyer or the seller.
When purchasing a home in Miami or anywhere else in Florida there are numerous fees, costs, and expenses which get allocated between the buyer and the seller on the closing statement.
It is sensible for a buyer or a seller to engage in the services of an experienced Florida Real Estate Attorney prior to the signing of the purchase and sale contract to not only review the terms of the contract but also to make sure that these various closing costs are properly allocated between the buyer and the seller in the contract.
Closing Costs for Buyers
Customary buyer closing costs include:
- Title Insurance
- Loan Fees
- Down Payment
- Documentary Stamps on the Note
- Intangible Tax on the Mortgage
- Prepaid Interest
- Inspection Fees
- Survey Fee
- Mortgage Insurance
- Hazard Insurance
Closing Costs for Sellers
Customary seller closing costs include:
- Title Search Fee
- Loan Payoff
- Broker’s Commission
- Documentary Stamps on the Deed
- Lien Search Fee
- Prorated Real Property Taxes
Typically, home buyers will pay between 2 to 5 percent of the purchase price of their home in closing fees. You can also avoid upfront fees on your loan by getting a no-closing cost mortgage, in which you don’t pay any of the closing costs when you close on the mortgage. home buyers can negotiate with the seller over who pays these fees. Sometimes the seller will agree to assume the buyer’s closing fees.