Florida Closing Costs for Buyers: Taxes and Line Items
Which Florida closing costs the statutes set, which line items have no set figure, and what to ask your closing agent and lender before you sign.
Closing costs are everything that comes due at a Florida closing apart from the price. Most have no single figure, because they turn on the property, the loan and the contract. A few are fixed by Florida law. This guide keeps the two apart, so you know which rates come from a statute and which charges you need to ask about. For the buying process as a whole, start with what to know before buying in Destin.
Which closing costs does Florida law set?
Florida's statutes set the rates of the taxes on the deed and on a new mortgage loan.
Florida's documentary stamp tax on a deed is 70 cents for each $100 of the price, under section 201.02 of the Florida Statutes, and the contract decides which side pays it.
A new mortgage note carries documentary stamp tax of 35 cents for each $100 borrowed, under section 201.08.
Florida also levies a one-time nonrecurring intangible tax of 2 mills on each dollar of a loan secured by Florida real property, under section 199.133.
Have your closing agent show you how each tax was worked out on your settlement statement, from the actual price and, if you borrow, the actual loan amount.
Which line items have no set figure?
Each of the charges below depends on the transaction. Ask your closing agent, your lender and your insurance agent about them, and get every answer in writing:
- The title search, the settlement or closing fee, and any courier or wire charges.
- A survey of the lot.
- The home inspection, a wind mitigation inspection and any other inspection you order.
- The first year of homeowners coverage and, where it applies, flood coverage.
- Lender charges such as origination, appraisal and credit report fees.
- Prorated property taxes and any prepaid amounts the lender collects.
- For a condominium or a home in an association: the estoppel certificate, any transfer or application fee, and any capital contribution the association charges.
Ask your closing agent for the title premium and the recording charges on your file as well: the owner's title insurance policy, the lender's title policy if you borrow, and what it costs to record the deed and any mortgage.
When will you see real figures?
Early. Ask your lender for an itemized estimate of loan costs as soon as you apply, and ask your closing agent for the settlement statement, which lists every charge and the side paying it. Put the two side by side and question anything that moved between them. Our agents can go through either document with you before you sign.
Who decides which side pays?
For the deed tax, the sentence above has answered it: the contract decides. For every other line item, read the closing-cost section of the contract before you sign it, and ask your agent which charges it assigns to you and which to the seller.
What changes on a cash purchase?
Ask your closing agent which charges drop off the settlement statement when there is no loan and which stay. Keep asking for written quotes on the survey and on every inspection you order.
What should a condo or association buyer add?
Have your closing agent request the association's estoppel certificate early, with its list of transfer charges, so both make it onto the settlement statement. Our guide to condo, townhome and house ownership explains what that certificate settles, in more depth than this guide can. And before the deposit goes hard, the building documents in our high-rise checklist are worth reading too.
Frequently asked questions
Which law sets the tax on a deed?
Section 201.02 of the Florida Statutes sets the rate, and the contract decides which side pays it.
Does a new mortgage add any taxes at closing?
Yes, it adds two. Documentary stamp tax on the note falls under section 201.08, and the nonrecurring intangible tax under section 199.133. Both are figured from the amount you borrow.
Why does this guide give no figure for inspections or the title agent's fees?
This guide gives a figure only where a statute sets the rate. For the title search, the settlement fee and each inspection, get written quotes through your closing agent and check them against the settlement statement before closing.
Who can explain my settlement statement?
Ask your closing agent first. Our agents can also go over it with you line by line before you sign; you can reach us here.
