Florida seller closing costs come off the sale price before the proceeds reach you. Some are set by the state, some by your contract, and one depends on your closing date. Here is each line, where its figure comes from, and a worked example on a $400,000 sale.
Key takeaways
- The deed tax is 70 cents on each $100 of the price outside Miami-Dade County, which is $2,800 on a $400,000 sale.
- Florida sets the owner's title insurance premium by rule. It is $2,075 on a $400,000 policy, and the contract says who pays it.
- Property tax is paid after the year it covers, so a seller credits the buyer for January 1 to the closing date.
- An association can charge up to $299 for the estoppel certificate, and more if it is rushed or the account is behind.
- Commissions are negotiable. They are set in your listing agreement and the purchase contract.
Florida seller closing costs at a glance
Most of what a seller pays falls into six groups:
- Loan payoffs: your mortgage, and any second loan or line of credit on the home.
- Commissions: the listing brokerage's, and the buyer's brokerage's if you agree to pay it.
- The deed tax: documentary stamps on the deed.
- Title and closing: the owner's title policy if the contract puts it on you, and the title agent's closing fee.
- Property tax and association charges: your share of this year's tax, the estoppel certificate, and any dues you owe.
- Credits and repairs: whatever you agree to after the buyer's inspection.
Our seller net sheet adds these up for your own price and closing date. The sections below explain each figure it uses, so you can check it against the papers you receive.
Documentary stamp tax on the deed
Florida taxes the documents that transfer real property. The Department of Revenue puts the rate at 70 cents on each $100 of the price, or part of $100, in every county except Miami-Dade. On a $400,000 sale that is $2,800.
The law makes every party to the deed liable for the tax. The purchase contract says who pays it, and it is usually the seller. Read that line in your own contract before you count on it either way.
The tax is worked out on the price, not on your equity. A seller with a large mortgage pays the same stamps as a seller with none.
The owner's title insurance policy
Florida does not leave title insurance premiums to the market. Rule 69O-186.003 of the Florida Administrative Code sets them, and its rates have been in effect since July 1, 2002:
- $5.75 per $1,000 of coverage up to $100,000
- $5.00 per $1,000 from $100,000 to $1 million
- $2.50 per $1,000 from $1 million to $5 million
- $2.25 per $1,000 from $5 million to $10 million
- $2.00 per $1,000 above $10 million
A $400,000 policy costs $575 for the first $100,000 and $1,500 for the next $300,000. That is $2,075.
Who buys the owner's policy is a term of the contract, so it can fall to either side. The title agent also charges a closing or settlement fee of their own, which the rule does not set. Ask for both figures in writing early. The agent's quote is the number to use once you have it.
Property tax when you sell
Florida property tax is billed in November for the year that is ending. State law makes it due on November 1 and delinquent on April 1 of the next year.
If you close before this year's bill is paid, the buyer will be the one who pays it. So you credit the buyer at closing for the days you owned the home, from January 1 to the day before closing. On a $4,800 bill and a November 19 closing that is 322 days, or about $4,235.
Have two things ready:
- Last November's bill, or the August notice of proposed taxes, until this year's bill is out.
- Any community development district assessment on that bill. It is part of the bill, so it is part of the credit.
If you close after you have paid the year's bill, the credit runs the other way. The buyer pays you back for the days after closing.
Association fees at closing
When a home is in a homeowners association, the title agent asks the association for an estoppel certificate. It states what the owner owes. Section 720.30851 of the Florida Statutes gives the association 10 business days to deliver it.
The state caps what an association may charge for the certificate. The current caps, published by the Department of Business and Professional Regulation, are:
- $299 for the certificate
- $119 more if it is needed within three business days
- up to $179 more if the account is delinquent
The department adjusts the caps for inflation, and the next update is due by July 1, 2027. Unpaid dues, and any transfer fee in the association's own documents, are settled at closing too.
Loan payoffs, credits and the final statement
Your lender's payoff statement gives the exact amount to clear the mortgage on the closing date. It is not the balance on your last monthly statement, because interest runs to the day the lender is paid. Order it as soon as you have a closing date, and order one for any second loan as well.
Credits and repairs are the lines that change most after you accept an offer. A buyer may ask for a credit toward closing costs, a repair after the inspection, or a home warranty. Each one you agree to comes off your proceeds, so add it to your figures the day you agree to it.
Here is the order the real numbers arrive in:
- The payoff statement, from your lender.
- The estoppel certificate, from the association.
- The title agent's premium and closing fee.
- The settlement statement, which lists every line for both sides.
Buyers with a mortgage also receive a Closing Disclosure from their lender. The Consumer Financial Protection Bureau explains how to read one, and it is a useful picture of what the other side of your sale is looking at.
A worked example on a $400,000 sale
This example uses the state's rates above and leaves commissions out, because yours are whatever your listing agreement and the buyer's offer say.
- Sale price: $400,000
- Mortgage payoff, from the lender's statement: $180,000
- Documentary stamps on the deed: $2,800
- Owner's title policy, if the contract puts it on the seller: $2,075
- Property tax credit to the buyer, 322 days of a $4,800 bill: $4,235
- Estoppel certificate: $299
Those lines total $189,409, which leaves $210,591. Commissions, the title agent's closing fee and any credits or repairs come out of that.
A net sheet is for planning. The settlement statement your title agent prepares is the final word.
Common questions
Who pays the documentary stamp tax in Florida?
The law makes every party to the deed liable for it. The purchase contract assigns it, and it is usually the seller. Outside Miami-Dade County the rate is 70 cents on each $100 of the price, or part of $100.
Can I shop around for a lower title insurance premium?
Not for the premium itself. Florida sets it by rule, so the same coverage carries the same premium from one title agent to the next. The agent's own closing fee is separate and does vary, and the contract decides which side pays for the policy.
Do I owe income tax on the sale of my home?
That depends on your gain, how long you owned and lived in the home, and other facts about you. The IRS explains the rules, including the exclusion for a main home, in Publication 523, Selling Your Home. Ask a tax professional about your own sale.
How do I avoid wire fraud at closing?
Confirm any wiring instructions by calling the title company at a number you already have, not one from an email. The Federal Trade Commission's consumer advice site explains how these scams work and what to do if you are caught by one.
Every sale starts with a price. Ask us for a pricing review of your home, or read how selling a home works here. If you have a question about your own figures, contact the office and an agent will reply.
