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It’s very important for home buyers and sellers in Florida to understand the fees and costs commonly associated with title services — the last thing you need in the middle of navigating a real estate transaction is an unpleasant surprise about an unexpected fee.

Let’s take a closer look at some of the most common individual expenses that contribute to closing costs in Florida:

Title Search FeesTitle Company Fees and Costs: Understanding the Breakdown for Real Estate Closings

One of the primary responsibilities of a title service company is the title search. This involves researching public records to uncover any existing liens, judgments, or other encumbrances on the property. The title search fee covers the cost of conducting this research.

Title Insurance Premium

Title insurance safeguards buyers against any undiscovered or hidden title defects. It’s highly recommended for all homebuyers, and it’s required for those who plan to finance their new properties. In Florida, the premiums for the lender’s title policy and the owner’s title policy is a one-time fee and is regulated by the State of Florida. Get a free estimate of title closing fees in Florida.

Closing Fee

The closing (or settlement) fee covers the administrative costs of finalizing the real estate transaction. This includes coordinating with all parties, preparing necessary documents, and overseeing the transfer of funds — among other responsibilities. Settlement fees can vary considerably depending on the complexity of the transaction.

Recording Fees

After closing, certain documents (such as the deed and mortgage) will need to be recorded in your county’s public records. This service is typically handled by the county clerk’s office. While title companies do not benefit from recording fees, they typically collect them and transfer them to the appropriate authorities.

Property Taxes

Property taxes are typically prorated (divided) between the buyer and the seller based on the closing date. This ensures that each party pays their share of the property taxes for the portion of the year they own the property. The prorated amount is often calculated based on the previous year’s tax bill.

Documentary Stamp Tax

In Florida, a documentary stamp tax of $0.70 per $100 is levied on various types of documents, including real estate transactions. This fee is calculated based on the purchase price for the property, and is generally the responsibility of the seller.

Looking for the Best Title Services in Florida?

Familiarizing yourself with common Florida real estate closing expenses is a crucial step in the process of selling or buying a home. By working with a reputable title company in Florida, you can ensure you get the highest-quality title services at the best price.
Get your free title quote today.