Who pays closing costs in Florida?
Both sides do. As I tell my buyers, “Both the buyer and seller are responsible for certain closing costs, as outlined in the contract; these costs are not necessarily divided equally.” Property taxes are prorated to the closing date, so each of you pays for the part of the year you own the home.
Florida sets the tax rates on deeds and mortgages. It does not decide which of you pays them. The Florida Department of Revenue says all parties to a document are liable for documentary stamp tax “regardless of which party agrees to pay the tax” (Florida Dept. of Revenue). In practice, the contract assigns it.
What does the seller usually pay?
Sellers customarily cover the cost of transferring ownership. The biggest tax on that side is the documentary stamp tax on the deed: 70 cents on each $100 of the price in every Florida county except Miami-Dade. Miami-Dade’s rate is 60 cents per $100, plus a 45-cent surtax that does not apply when the deed transfers only a single-family home (Florida Dept. of Revenue).
Sellers also pay off their own mortgage, their share of prorated property taxes, and usually any HOA or condo estoppel fees. For the seller’s full net sheet, see what it really costs to sell a home in Florida.
What does the buyer usually pay?
If you are financing, you usually carry the loan-side costs:
- Documentary stamp tax on the loan, 35 cents per $100 of the amount borrowed (Florida Dept. of Revenue)
- Florida’s one-time intangible tax on a new mortgage, 2 mills, which is $2 per $1,000 borrowed, due when the mortgage is recorded (s. 199.133, F.S.; s. 199.135, F.S.)
- Lender fees such as origination, appraisal, and credit report
- The lender’s title policy, recording fees, and any survey the lender asks for
- Homeowners insurance and the deposits for your tax and insurance escrow account
Here is the tax math alone on an illustration, not a real deal: a $400,000 Broward home with a $320,000 loan. Loan stamps are $320,000 ÷ 100 × $0.35 = $1,120. Intangible tax is $320,000 × 0.002 = $640. The seller’s deed stamps, if the contract leaves them with the seller, are $400,000 ÷ 100 × $0.70 = $2,800. Lender, title, and insurance costs come on top and vary by loan and property.
Cash buyers skip the mortgage taxes and lender fees. They still pay title, recording, and inspection costs unless the contract shifts them.
Who pays for title insurance in Broward?
“In Broward County, the buyer typically pays for the owner’s title insurance and selects the title company. However, this can be negotiated on the contract.” Custom can differ in other counties, so check which box is marked on the title section of your contract before you sign.
Who pays the buyer’s agent?
Compensation for a buyer’s agent is always negotiable. It is not set by law (Florida Realtors).
Since August 17, 2024, national practice changes tied to the NAR settlement removed offers of buyer-agent compensation from the MLS, and agents now sign a written agreement with a buyer before working together (Florida Realtors NAR settlement FAQs). Florida Realtors lists several ways the buyer’s brokerage can be paid: the buyer pays at closing, the buyer negotiates a seller credit in the contract, or the listing broker or the seller signs a separate compensation agreement with the buyer’s broker (Florida Realtors, Oct. 2024).
That is the national and state background. Here is what I see locally: “Currently the sellers I’ve worked with are still agreeing to pay the buyers agent compensation.”
When a buyer asks who pays me, I say, “I do my absolute best to get paid from the seller.” Then I explain the Buyer Broker agreement. My agreement outlines compensation of 3% of the purchase price. I make every effort to negotiate for the seller to cover that amount, and I put that request in the offer. In my experience sellers often agree, but it is not guaranteed. Any amount the seller does not cover is the buyer’s responsibility under the agreement. And like every compensation term, it is negotiable.
How much cash should a Broward buyer plan for?
“For budgeting purposes, I generally suggest buyers set aside approximately 5% of the purchase price for closing costs and prepaid expenses, separate from their down payment.” That covers lender and title fees, homeowners insurance, and the money that goes into your tax and insurance escrow. Taxes and insurance in South Florida can significantly affect that amount.
“The 5% is a planning estimate, not a fixed charge. Your lender and title company will provide a more accurate breakdown based on the property, loan terms, and closing date.”
So plan three separate amounts:
- Your deposit and down payment (see how much cash you need to buy a home in Broward County).
- Your closing costs and prepaids, roughly 5% of the price as a starting estimate.
- Any buyer-agent compensation the seller does not cover under your agreement.
Closing costs are only part of the decision. I once spotted water stains a buyer wanted to overlook. The inspection found mold, and I supported their decision to walk. A few weeks later they found something even better.
If you want to go through these numbers on a home you’re considering, start on the buy page or text me, in English or Spanish.
Mary Gallo is a Broker Associate with Canvas Real Estate (Broker of Record: Ernesto Vega), Lic. BK3457733. She was Top Producer at Canvas in 2020, 2021, 2022, and 2024, is a current board member of NAHREP West Broward, and has a 4.9-star rating from 39 Google reviews.