The Custom vs. the Contract

Florida law doesn’t dictate who pays which closing cost — the purchase contract does. What most people call “the rules” are really county customs that the standard Florida Realtors/Florida Bar contract forms reflect. That means every cost below can be shifted during negotiation, and in a competitive market, often is.

What Sellers Customarily Pay

The largest seller cost in nearly every Florida county is the documentary stamp tax on the deed — a state transfer tax of $0.70 per $100 of the sale price. On a $500,000 home, that’s $3,500. Miami-Dade County is the exception: the rate there is $0.60 per $100, plus a $0.45 per $100 surtax that applies to properties other than single-family homes.

In most Florida counties, the seller also pays for the buyer’s owner’s title insurance policy and chooses the title or closing agent. Sellers additionally cover their own attorney’s fees, real estate commissions they’ve agreed to, prorated property taxes up to the closing date, and any payoff of existing mortgages or liens.

What Buyers Customarily Pay

Buyers pay the costs of borrowing. If there’s a mortgage, that includes documentary stamps on the note at $0.35 per $100 of the loan amount, Florida’s nonrecurring intangible tax of 0.2% of the loan, the lender’s title policy, loan origination fees, appraisal, survey, inspections, and recording fees for the deed and mortgage. Buyers also typically fund prepaid items — the first year of homeowners insurance and escrow deposits for taxes.

Title Insurance: The County Flip

Owner’s title insurance follows a promulgated rate set by state regulation — $5.75 per $1,000 of the purchase price up to $100,000, then $5.00 per $1,000 up to $1 million — so the price is the same at every title company. What changes by county is who pays it. In most of Florida, the seller pays. In Miami-Dade, Broward, Collier, and Sarasota counties, the buyer customarily pays for the owner’s policy — and usually picks the closing agent as a result.

Closing Costs in Miami-Dade County

If you’re buying or selling in Miami, expect the local twist on both rules above: the deed doc stamps are $0.60 per $100 (with the surtax for non-single-family properties), and the buyer — not the seller — typically pays for owner’s title insurance and selects the closing agent. Because the buyer is choosing, having your own real estate attorney handle the closing costs you nothing extra in premium and gives you an advocate at the table. Arturo R. Alfonso P.A. has closed real estate transactions across Miami-Dade for over 35 years, in English and Spanish, and can review your contract’s cost allocation before you sign. If you’ve been searching for a real estate attorney near me in Miami, we’re ready to help.

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