Expected Closing Fees for Sellers

Both Buyers and Sellers have closing costs and as a seller of real property in Florida, there are certain fees you will be required to pay at closing.   Much of the buyer’s closing costs are affiliated or correlated with having to get a loan.  If the buyer is a cash buyer, then the closing costs are significantly less for the Buyer.

Commission
This is one of the largest expenses for a seller and in the sale of real property.  The commissions are split between two brokerage firms, the listing brokerage firm (the brokerage firm that listed your home for sale) and the brokerage firm that procures your buyer.

The commision is collected at the time your home closes.  The commission is paid to the brokerage isn’t just commission paid to the agent, but includes all marketing expenses, professional photography, brochures, MLS fees, website enhancements, print marketing, administrative costs, and other expenses necessary to generate the sale.  It is important to note that the commission is paid to the brokerage, all expense paid, and then a portion is paid to the sales agent.

Deed Documentary Stamps (“Doc Stamps”)
The state requires “Doc Stamps” to be paid on the sales price and some states refer to this as Transfer Taxes.  This fee is not negotiable and not paid to any party in the transaction.  This fee is $.70 per $100 of the total consideration paid (Sales Price) for the transfer of the property from the Seller to the Buyer.  Calculation:  (Sales Price divided by 100) and then X .70 = Doc Stamps on the Deed.  (Example:  $300,000 sale = $2,100; $500,000 = $3,500; $750,000 = $5,250; $1,000,000 = $7,000)

Settlement fee or Closing fee
This is a fee paid to the Title Company and typically varies between $350-$600.  This fee may be negotiable so it’s one thing to consider when selecting the Title Company.

Title Insurance
Title Insurance protects the right to ownership.  A detailed explanation of Tile Insurance can be found here. The cost of title insurance is based on the purchase price of the property.  It is a one-time fee paid at closing and it is non-negotiable.  If you’ve owned your home only a few years, then you may be re-issued a credit by providing your original owner’s title insurance policy. Because this is generally a Seller’s Expense, it is the seller who selections which Title Company to use.

Title Search and Lien Search Fee- The title search fee and lien search fee are generally $300-$500 in total. Prior to closing on a home, a search of the public records must be done to look for outstanding liens, judgements, and unsatisfied mortgages. This is to ensure that there are no claims made against the property.  A chain of title is also performed during the title examination.  A chain of title looks back throughout the history of the property, from the current owner to the original owner.  This is to verify that ownership was transferred correctly to each new owner.   A seller should be delivering a property to the new buyer free of any liens and judgments.

HOA Estoppel Fee– The HOA Estoppel Certificate provides a statement of the Seller’s financial status with the association and must be provided before the sale can be transferred.  It will show if there are any outstanding violations or liens on the property, as well as if all dues are current or past due. This fee is charged by the Homeowners Association management company.  Generally the fee is $250 and an additional $100 can be added for a “rush order” request.  This fee is not negotiable.

Home Warranty Insurance Plan- This fee is negotiable and may or may not be apart of the purchase and sale agreement.  If you as a seller agreed to offer a Home Warranty with the sale of the home, then this would be paid at closing as part of your closing costs.  These usually range from $450-$1,000 depending on the amount of coverage and size of the home.

Other Fees – Some of the fees that may be charged by the Title Company may include a Document Storage Fee, Notary Fees, Courier Service Fees and Wire Transfer Fees.  The Title Company can provide an estimate of these other fees if they are applicable.

Attorney Fees- You have the right to hire an attorney to represent you in the sale and review your real estate purchase agreeement and or the closing documents.  You should select an attorney early in the process.  The attorney will either bill you separately or this cost may appear on the closing statement, also called the ALTA statement.

Property Taxes
Property taxes in Florida are paid in arrears (1 year behind).  When you go to sell your home, you pay up until the time that you owned your home. The tax amount from which you owned the property in the calendar year is credited to the buyer at closing.

 

Additional Fees and Costs that may or may not be applicable:

Mortgage Payoff
If you have a mortgage(s) they must be paid off at closing. Your mortgage pay off not only includes the balance of what is owed but also interest which will be prorated to the day of closing.  The Title Company will collect this amount and then pay the lender.

Home Equity Line of Credit
If you have a line of credit, that usually has to be paid off in addition to your primary mortgage. If the lender that provided you with the line of a credit has attached a lien to your property, that lien must be satisfied at the time of closing

FIRPTA – Foreign Investor – If you as the Seller are consider Foreign according to the IRS guidelines for tax purposes, then the title company may withhold 10-15% of the sales proceeds for the IRS. Read more about FIRPTA here.

Infinity Realty Group
20 S Main St #260
Winter Garden
,
FL
34787

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