There are certain standards with regard to the buying and selling of real estate in Florida that generally prevail throughout the State. Although these practices and standards are the result of long standing custom, there is no rule, law or regulation that mandates compliance.
Title insurance companies in Florida are required by law to charge a fee for conducting the closing. This fee can vary from as little as $50 to $1000 or more depending upon the size of the transaction and the complexity of the work to be done. The fee is generally split between buyer and seller and for the normal residential transaction will run less than $300.
Search and Examination Fee
Like the closing fee, title insurance companies are required to charge no less than their actual cost of conducting the record search, and the examination of title which is always necessary when title insurance is issued. This fee again can vary considerably from a low of about $50 to $2,500 or more depending again upon the complexity and difficulty of the work involved. Fees involving condominium units or subdivision properties generally run no more than $150.
Florida Documentary Stamps
It is also generally the custom that the seller pay the Florida Documentary Stamp tax levied on all deeds. The logic for requiring the seller to pay this tax is based on the long standing legal contention that the seller must provide the buyer with good sufficient, and recordable deed. Deeds in Florida are not recordable until the stamp tax is paid. This tax is assessed at the rate of $.70 per $100 of consideration (the purchase price).
Deed Recording Fee
The logic that the seller provides the buyer with a recordable deed, further requires the buyer to pay the cost of recording that deed, because recordation is solely for the benefit of the buyer. Florida recording costs at this time are $10.00 for the first page, and $8.50 for any additional page. Deeds are usually two page instruments costing $18.50 to record.
Real Estate Sales Commission
The seller almost always pays the real estate sales commission. Although sales people in Florida seem to be devising never ending schemes of representation, the seller usually hires the broker and pays the commission.
Condominiums and gated communities usually levy a monthly or quarterly maintenance assessment which is like taxes, prorated at closing. If an approval or transfer fee is required, such fees are generally paid outside of the closing by the buyer. Transfer fees usually run between $50 and $150.
New Loan Costs
Almost always, the buyer will pay any costs associated with financing a purchase. These costs can range considerably and depend solely upon the lender involved and the type of load. They can be as high as 5% of the total amount of the loan.
Title Clearing Costs
The seller always pays the cost, if any, of clearing up his own title. These costs may be a little as $10.00 to record a satisfaction of mortgage, to thousands of dollars in litigation costs if a probate or action to quiet title is required. In general though, title clearing costs are not significant.
We are located in Vero Beach, Florida and provide title services for all of Florida’s counties.