Buyer & Seller Guide
Everything you need to know about the Florida closing process, from contract to keys.
For Buyers
What Happens After Your Offer Is Accepted?
Once the seller accepts your offer, the purchase contract is executed and the clock starts. Your earnest money deposit (EMD) is typically due within 3 business days and is held in the title company's escrow account. The title company then begins the title search to ensure the property has a clear, marketable title.
What Are the Buyer's Closing Costs?
Florida buyers should budget for the following closing costs:
- Documentary stamp tax on the note - $0.35 per $100 of the loan amount
- Intangible tax on the mortgage - 0.2% of the loan amount
- Recording fees - $10 first page, $8.50 each additional page
- Lender's title insurance - $25 when issued simultaneously with the owner's policy
- Owner's title insurance - In buyer-pays counties (Sarasota, Miami-Dade, Broward, Collier)
- Survey, inspections, and prepaids - Insurance, taxes, HOA
For Sellers
What Does the Seller Pay at Closing?
Florida sellers typically pay the following at closing:
- Deed documentary stamps - $0.70 per $100 of the sale price ($0.60 in Miami-Dade)
- Owner's title insurance - In seller-pays counties (most of Tampa Bay)
- Real estate commissions - As negotiated in the listing agreement
- Mortgage payoff - Outstanding loan balance plus per-diem interest
- Prorated taxes and HOA - Adjusted to the closing date
What to Expect on Closing Day
Closing day is when ownership officially transfers. Here is what happens:
- 1Final walkthrough - The buyer inspects the property one last time.
- 2Document signing - Both parties sign the closing documents at the title company office (or remotely).
- 3Funds disbursed - The title company disburses funds to the seller, pays off the mortgage, and distributes commissions.
- 4Recording - The deed and mortgage are recorded with the county clerk.
- 5Keys! - The buyer receives keys and the transaction is complete.
Frequently Asked Questions
How long does a typical Florida closing take?
Most residential closings in Florida take 30 to 45 days from contract execution. Cash closings can close in as little as 7 to 14 days. The timeline depends on factors like the title search, lender requirements, inspections, and how quickly all parties provide necessary documents.
What is title insurance and why do I need it?
Title insurance protects you against financial loss from defects in the title to your property. These defects could include unknown liens, forged documents, undisclosed heirs, or recording errors. An owner's policy protects the buyer for as long as they own the property. A lender's policy protects the mortgage company. In Florida, title insurance premiums are regulated by the state and are a one-time cost paid at closing.
Who pays for title insurance in Florida?
In most Tampa Bay counties (Hillsborough, Pinellas, Pasco, Polk), the seller customarily pays for the owner's title insurance policy. In Sarasota and some South Florida counties, the buyer typically pays. This is always negotiable in the purchase contract.
What are the typical closing costs for buyers in Florida?
Florida buyers typically pay for documentary stamp tax on the note (mortgage), intangible tax on the mortgage, recording fees for the deed and mortgage, the lender's title insurance policy, and prepaid items like homeowners insurance and property taxes. These costs typically range from 2% to 5% of the purchase price.
What does a title company do?
A title company conducts the title search, issues title insurance policies, holds earnest money deposits in escrow, prepares closing documents, facilitates the closing signing, disburses funds to all parties, and records the deed and mortgage with the county. The title company acts as a neutral third party to ensure the transaction closes properly.
Questions About Your Closing?
Our team is here to walk you through every step. Reach out anytime.
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