Florida closing costs, and who actually pays them
Two of the largest line items at a Florida closing are set by the state, not by the company charging you. Documentary stamp tax is $0.70 per $100† of the sale price, and title insurance is a promulgated rate — $5.75 per $1,000† on the first $100,000. Every title agency in Florida charges the identical premium, so shopping for a cheaper one is wasted effort.
Title insurance premiums in Florida are promulgated by the Office of Insurance Regulation. They are not a market price. Two agencies quoting different premiums for the same policy amount means one of them is wrong, not that one is cheaper. What does vary is everything around it — the settlement fee, the title search, courier and wire fees. That is where comparison is worth your time.
The state-set taxes
| Charge | Rate | Applies to | Customarily paid by |
|---|---|---|---|
| Deed documentary stamp | $0.70 per $100† | The sale price | Seller |
| Note documentary stamp | $0.35 per $100† | The mortgage amount | Buyer |
| Intangible tax | 0.2% of the loan amount† | The mortgage amount | Buyer |
Note that the two mortgage charges apply to the loan, not the purchase price. A larger deposit reduces them proportionally, which is a small but real argument for putting more down that rarely gets mentioned alongside the interest-rate argument. A cash purchase avoids both entirely.
What the state-set costs come to
These four lines are fixed by Florida law, so they can be calculated exactly rather than estimated. Lender, settlement and inspection fees are not included — those vary by provider and are the part worth comparing.
| Charge | Amount | Customarily paid by |
|---|---|---|
| Deed documentary stamp | $3,150 | Seller |
| Note documentary stamp | $1,260 | Buyer |
| Intangible tax on the mortgage | $720 | Buyer |
| Owner’s title policy promulgated | $2,325 | Seller |
| Buyer pays | $1,980 | |
| Seller pays | $5,475 |
The title premium is not shoppable. It is set by the Office of Insurance Regulation at $5.75 per $1,000 on the first $100,000 and $5.00 per $1,000 above it, so every Florida agency charges the same. Settlement, search and courier fees do vary — compare those.
Who pays what is custom, not law. All of it is negotiable in the contract, and in a slower market sellers routinely concede more of it.
Not included, because they depend on your lender, insurer and county: loan origination and appraisal, settlement and title search fees, recording fees, survey, prepaid homeowners insurance and escrow reserves, prorated property tax, and any association estoppel fee. In Florida the prepaid insurance line is usually the one out-of-state buyers underestimate most.
Title insurance, and the two policies
The promulgated rate is $5.75 per $1,000† on the first $100,000 of coverage, then $5.00 per $1,000† on the next tranche. There are two separate policies and they protect different people:
- The owner’s policy protects you, for as long as you own the property. In most of Florida the seller customarily pays for it.
- The lender’s policy protects the bank, and only the bank, for as long as the loan exists. The buyer pays. When both are issued together the second usually costs a nominal simultaneous-issue fee rather than a second full premium.
Without a lender there is no lender’s policy, and nobody is required to buy an owner’s policy. Skipping it saves a one-time premium and leaves you personally exposed to every defect the search missed — an undisclosed heir, a forged signature in the chain, an unreleased old mortgage. It is the one closing cost worth paying voluntarily.
Miami-Dade reverses both customs
If your purchase is in Miami-Dade, two of the assumptions above flip. The deed rate is $0.60 per $100 rather than the statewide figure, with an additional $0.45 per $100 surtax on transfers of property that is not single-family. And the buyer customarily pays for the owner’s title policy, the opposite of the rest of the state.
Everything described here as "customarily paid by" is exactly that — custom. None of it is statutory, and all of it is negotiable in the contract. In a buyer’s market sellers concede these routinely. If your agent tells you a cost is fixed by who-pays-what convention, the accurate answer is that convention is the default, not the rule.
What else appears on the statement
- Prorated property tax. Florida bills in arrears, so the seller credits the buyer for their portion of the year. On a homesteaded property this can be substantial — and the following year’s bill will be higher, because the sale resets the assessment.
- Prepaid insurance. Lenders require the first year of homeowners cover paid up front, plus escrow reserves. In Florida this is materially larger than buyers coming from other states expect.
- Recording fees for the deed and mortgage, set by the county clerk.
- Survey, where required or wanted.
- HOA or condo estoppel fee, if the property is in an association. This is capped by statute.
- Settlement, search and closing fees — the genuinely variable part, and the only part worth comparing between providers.
The bit that catches people from out of state
Buyers moving to Florida usually budget from a national closing-cost estimate and land short, because the two Florida-specific pressures are not in those models. Insurance is the first: the prepaid year plus escrow is often several times what the same house would cost to insure elsewhere. Property tax reset is the second: the seller’s bill reflects a capped assessment they may have held for a decade, and yours will not.
Ask for an estimate that names your actual county and your actual insurance quote before you commit. A generic percentage of purchase price is not a budget.
Related
Common questions
Who pays closing costs in Florida, buyer or seller?
Both, on different items. The seller customarily pays the deed documentary stamp tax and the owner’s title policy; the buyer pays the note doc stamp, intangible tax, lender’s policy and prepaid insurance. All of it is custom rather than law, and all of it is negotiable.
How much is documentary stamp tax in Florida?
$0.70 per $100 of the sale price on the deed, and $0.35 per $100 of the loan amount on the note. Miami-Dade uses $0.60 per $100 on the deed, plus a $0.45 per $100 surtax on transfers of property that is not single-family.
Can I shop around for cheaper title insurance in Florida?
Not on the premium. Title insurance rates are promulgated by the Office of Insurance Regulation, so every agency charges the same. Settlement fees, search fees and courier charges do vary, and those are worth comparing.
Do I need an owner’s title policy if I am paying cash?
Nobody can require it, but without a lender there is no lender’s policy either, so declining leaves you with no title protection at all. It is a one-time premium against defects a search can miss, such as an undisclosed heir or an unreleased old mortgage.
Why are my Florida closing costs higher than the online estimate said?
National estimators under-model two Florida-specific items: prepaid homeowners insurance with escrow reserves, and the property tax reset. The seller’s tax figure may reflect a capped assessment held for years, and yours will not carry over.
Tax rates are statutory and title premiums are promulgated statewide, but recording fees, settlement charges and who-pays-what custom vary by county and are negotiable in the contract. Confirm figures on your own closing disclosure.