Closing costs in Florida, explained

Closing costs are the fees you pay once to finalize a home purchase, on top of your down payment. In Florida, they usually run about 2% to 5% of the purchase price. Here is what they cover, in plain language.

The main costs

• Title insurance: protects your ownership. In Florida the rate is set by the state, so it is the same no matter which title company you choose.
• Settlement or closing fee: what the title company charges to handle the closing.
• Recording and transfer taxes: Florida charges documentary stamp taxes to record the deed and any mortgage.
• Lender fees: if you use a mortgage, this covers origination, appraisal, and credit costs.
• Prepaids: property taxes and homeowner's insurance paid ahead into an escrow account.

Who pays for what?

In most of Florida, the seller traditionally pays for the owner's title insurance policy and the deed tax, while the buyer pays the lender fees, the taxes on the mortgage, and their own prepaids. Miami-Dade, Broward, Collier and Sarasota are the exception: there the buyer customarily pays for the owner's policy and chooses the title company. Everything is negotiable and can be written into the contract. See our Miami-Dade and Broward guide for the exact rates and a worked example.

No surprises

Before closing, you receive a Closing Disclosure that lists every dollar. We walk through it with you line by line, in your language, so nothing is a mystery.

Want your own estimate? Use our instant closing cost calculator. Just enter the price and see the numbers.