The total on a Loan Estimate can look arbitrary until you see what it’s paying for. Some Florida closing costs are set by law and cost the same at every title company. Others vary from lender to lender and are worth shopping. And a few are decided by the purchase contract, which spells out whether the buyer or the seller pays.
Short version: Freddie Mac says buyers should expect closing costs of 2% to 5% of the purchase price. Florida adds its own taxes at closing:
- Deed stamp tax. 70 cents per $100 of the price. Under the standard Florida contract, the seller pays it.
- Mortgage taxes. If you take out a loan, you pay 35 cents per $100 of the loan in stamp tax on the note, plus a 0.2% intangible tax on the mortgage.
Title insurance rates are set by the state, so they don’t vary by title company. In Central Florida, the seller usually pays for the owner’s policy, and the buyer’s lender’s policy then costs just $25. The rest of a buyer’s costs are lender fees, the appraisal, inspections, recording fees, and prepaid insurance and taxes, which vary by lender and home. Your Loan Estimate itemizes them within three business days of applying.
What closing costs pay for
A buyer’s closing costs fall into five groups:
- Lender costs: origination and underwriting fees, any points you pay to lower the rate, the appraisal, and the credit report. These vary more than any other part, which is why it’s worth comparing Loan Estimates from two or three lenders.
- Title and closing costs: the title search, the lender’s title insurance policy, and the title company or attorney’s settlement fee.
- Government costs: recording fees for the deed and mortgage, which are $10 for the first page and $8.50 for each additional page in Florida counties, according to the Orange County Comptroller, plus Florida’s taxes on the mortgage.
- Prepaids and escrow: the first year of homeowners insurance, often flood insurance, and a few months of property taxes and insurance to start the escrow account.
- Inspections and reports: the home inspection, a survey, and, for many Florida homes, the wind mitigation and four-point inspections insurers ask for.
Florida’s closing taxes
Florida charges three taxes on a typical home sale with a mortgage. All three are set by state law and can’t be waived.
| Tax | Rate | Who pays | On a $400,000 home with a $320,000 loan |
|---|---|---|---|
| Documentary stamp tax on the deed | 70 cents per $100 of the price | Seller, under the standard contract | $2,800 |
| Documentary stamp tax on the mortgage note | 35 cents per $100 of the loan | Buyer | $1,120 |
| Intangible tax on the mortgage | 0.2% (2 mills) of the loan | Buyer | $640 |
Rates from F.S. 201.02, 201.08, and 199.133. Who pays is set by paragraph 9 of the Florida Realtors/Florida Bar contract and can be changed by agreement. A cash buyer pays neither mortgage tax.
The deed tax is the one people often get backwards. The standard Florida Realtors/Florida Bar contract lists “documentary stamp taxes and surtax on deed” as a seller cost, and “taxes and recording fees on notes and mortgages” as a buyer cost. A buyer financing a $400,000 home with 20% down pays $1,760 in Florida taxes on the loan. The seller pays $2,800 on the deed.
Title insurance: set by the state
Florida is one of the few states where title insurance premiums are set by rule, so every title company charges the same premium. Under rule 69O-186.003, the rate is $5.75 per $1,000 for the first $100,000 of coverage and $5.00 per $1,000 from $100,000 to $1 million. On a $400,000 home, the owner’s policy is $2,075. The Florida Chief Financial Officer’s office gives the same rates and a $100 minimum.
There are two policies:
- The owner’s policy protects you as the owner. The standard contract lets the buyer and seller choose who pays it in paragraph 9(c), and in Central Florida the seller usually does.
- The lender’s policy protects the lender, and the buyer pays it. When it’s issued along with the owner’s policy, the premium is $25 for coverage up to the owner’s policy amount, plus any endorsements the lender requires.
The premiums are fixed, but title companies’ settlement and search fees aren’t, so those are worth comparing.
Who pays what under the standard contract
Most Florida home sales use the Florida Realtors/Florida Bar contract. Its paragraph 9 splits the costs this way unless the buyer and seller agree otherwise:
- Seller pays: the deed stamp tax, HOA or condo estoppel fees, the owner’s title policy if 9(c)(i) is checked, fees to clear up title problems, the seller’s attorney, and the municipal lien search when the seller provides the title.
- Buyer pays: taxes and recording fees on the mortgage, loan expenses, recording the deed, the appraisal, inspections, the survey and elevation certificate if needed, the lender’s title policy, all insurance, HOA or condo application and transfer fees, and the buyer’s attorney.
The seller net proceeds calculator works out the seller’s side.
Property tax at closing
Florida property tax bills go out in November for the whole calendar year, so at most closings the year’s taxes haven’t been paid yet. The standard contract has the seller credit the buyer for the part of the year the seller owned the home, through the day before closing. That credit lowers the cash the buyer brings. After closing, the buyer pays the full bill in November. The true monthly cost calculator estimates that bill. If the home will be your primary residence, file for the homestead exemption by March 1 of the next year.
Prepaids, escrow, and insurance
Lenders collect the first year of homeowners insurance at closing, and insurance is one of Florida’s biggest closing-day surprises. The state’s average premium with wind coverage ranges from about $2,650 a year in Lake County to $3,610 in Orange, according to the Florida Office of Insurance Regulation. Older homes may need a four-point inspection to get coverage, and a wind mitigation inspection can lower the premium. The home inspection checklist, homeowners insurance guide, and flood insurance guide cover these. Get insurance quotes early, since the lender won’t close without a policy.
Commissions after 2024
Since August 2024, buyers sign a written agreement with their agent before touring homes, and it sets the agent’s pay in a specific amount. According to the National Association of Realtors, the seller can still agree to pay some or all of it. That’s now a point to negotiate in the offer, so check your buyer agreement and ask what you’d owe if the seller doesn’t cover it.
Can the seller pay your closing costs?
Yes. A seller credit, or concession, is negotiated in the offer and paid at closing. Loan programs cap it. For a conventional loan on a primary residence, Fannie Mae allows seller contributions of up to 3% of the price with less than 10% down, 6% with 10% to 25% down, and 9% with more than 25% down. FHA and VA loans have their own limits, so ask your lender.
Getting your real number
Your lender must send a Loan Estimate within three business days of your application, and a Closing Disclosure at least three business days before closing. Compare the two line by line, and ask about anything that changed. For the Florida taxes and title insurance on your exact price and loan, use the closing cost calculator. For the full picture by county, see what it costs to buy a home in Central Florida, and for the step-by-step process, buying a house in Florida. Buying in an HOA or a condo? The HOA rules guide and condo buying guide cover the association fees that show up at closing, and the CDD fee calculator covers community development districts.
Frequently Asked Questions
Freddie Mac says buyers should expect closing costs of 2% to 5% of the purchase price. In Florida that includes state taxes on the mortgage (35 cents per $100 of the loan plus 0.2%), the lender’s title policy, lender fees, the appraisal, inspections, recording fees, and prepaid insurance and taxes.
Under the standard Florida Realtors/Florida Bar contract, the seller pays the documentary stamp tax on the deed, 70 cents per $100 of the price. The buyer pays the stamp tax on the mortgage note, 35 cents per $100 of the loan, plus the 0.2% intangible tax on the mortgage.
The contract decides who pays for the owner’s policy, and in Central Florida the seller usually does. The buyer pays for the lender’s policy, which costs just $25 when it’s issued along with the owner’s policy. Premiums are set by the state, so they’re the same at every title company.
The owner’s policy is $2,075 under the state’s promulgated rates: $5.75 per $1,000 for the first $100,000 and $5.00 per $1,000 above that up to $1 million. A lender’s policy issued at the same time costs $25, plus any endorsements.
Yes, through a seller credit negotiated in the offer. Loan programs cap it: for a conventional loan on a primary home, Fannie Mae allows up to 3% of the price with less than 10% down, 6% with 10% to 25% down, and 9% with more than 25% down.
Your lender must send a Loan Estimate within three business days of your application, and a Closing Disclosure at least three business days before closing. The Closing Disclosure has the final numbers.
Sources
- https://myhome.freddiemac.com/blog/homeownership/20180201-closing-costs
- https://www.flsenate.gov/Laws/Statutes/2026/201.02
- https://www.flsenate.gov/Laws/Statutes/2026/201.08
- https://www.flsenate.gov/Laws/Statutes/2026/199.133
- https://www.law.cornell.edu/regulations/florida/Fla-Admin-Code-Ann-R-69O-186-003
- https://www.myfloridacfo.com/division/consumers/understanding-insurance/title-insurance-overview
- https://www.consolidatedcredit.org/wp-content/uploads/2022/02/AS-IS-Contract-Sample.pdf
- https://www.occompt.com/187/Recording-Fees
- https://www.pbctax.gov/taxes/property-tax/
- https://floir.gov/docs-sf/default-source/property-and-casualty/stability-unit-reports/july-2026-isu-report.pdf
- https://www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements
- https://selling-guide.fanniemae.com/sel/b3-4.1-02/interested-party-contributions-ipcs
- https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-estimate-en-1995/
- https://www.consumerfinance.gov/ask-cfpb/what-is-a-closing-disclosure-en-1983/
This article is for general informational purposes only and isn’t financial, legal, insurance, or tax advice – for guidance specific to your situation, talk to a licensed professional.