Florida • Closing
Closing costs in Florida
What closing costs cover, which are unique to Florida, and how buyers and sellers typically split them.
Closing costs are the fees and charges paid at settlement, separate from your down payment. In Florida they include lender fees, title and settlement charges, prepaid taxes and insurance, and Florida’s documentary stamp taxes.
What closing costs include
Closing costs are the collection of one-time charges due when a home purchase is finalized. They generally fall into a few groups: lender-related fees for originating and processing the loan; third-party services such as the appraisal, credit report, and title search; title insurance and settlement or attorney fees; recording fees paid to the county; and prepaid items like the first portion of homeowners insurance and property taxes placed into escrow.
The exact mix depends on the loan, the property, and the parties involved. Your Loan Estimate — a standardized disclosure you receive after applying — itemizes these so you can see them clearly before you commit.
Costs that are specific to Florida
Florida levies documentary stamp taxes (“doc stamps”) on real estate transactions. There is a doc stamp on the deed, typically tied to the sale price, and a separate doc stamp plus an intangible tax on new mortgages. These are a normal part of a Florida closing and are worth knowing about, because they are not present in every state.
Title insurance is also a significant Florida closing item. It protects the buyer and lender against defects in the property’s title, and in Florida the promulgated title premium is based on the amount insured.
Who pays closing costs in Florida
How costs are split is largely a matter of negotiation and local custom, and it can vary by county. In many Florida transactions the seller customarily pays for the owner’s title policy and the deed doc stamps, while the buyer covers lender fees, the mortgage-related doc stamps and intangible tax, and prepaid escrow items — but this is not fixed and is set in the purchase contract.
Buyers can sometimes negotiate seller-paid closing costs, where the seller contributes toward the buyer’s costs as part of the deal. There are limits on how much a seller can contribute depending on the loan type and occupancy, which is something we help buyers understand.
Planning for closing costs
Because closing costs are separate from your down payment, it helps to plan for both when you start. The specific total depends on the property, the county, the loan program, and the negotiated terms, so an estimate for a particular home is far more useful than a generic figure.
As a Florida mortgage broker, New Century Financial Mortgage, LLC can walk you through the likely closing costs for a specific purchase and how they interact with your loan structure. This page is educational and is not a commitment to lend.
Frequently asked questions
What are documentary stamp taxes in Florida?
Doc stamps are Florida taxes on real estate documents. There is a stamp on the deed based on the sale price and a stamp on new mortgages, plus a separate intangible tax on the mortgage. They are a standard part of Florida closings.
Do buyers or sellers pay closing costs in Florida?
Both typically pay some. The split is negotiable and varies by county custom, but often sellers cover the owner’s title policy and deed doc stamps while buyers cover lender fees, mortgage doc stamps, and prepaid escrow items.
Are closing costs part of my down payment?
No. Closing costs are separate one-time fees paid at settlement, in addition to your down payment. It is wise to budget for both.
Can the seller pay my closing costs?
Sometimes. Seller contributions toward a buyer’s closing costs can be negotiated, subject to limits that depend on the loan program and how you will occupy the home.
How do I find out my exact closing costs?
After you apply, your Loan Estimate itemizes the expected closing costs for your specific loan and property. We can prepare an estimate for a particular Florida home so you can plan accurately.
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