Documentary stamp tax on the deed

Florida charges a documentary stamp tax when a deed is recorded. In most counties the rate is $0.70 per $100 of the sale price, or $700 per $100,000. In Miami-Dade County the rate is $0.60 per $100, plus a $0.45 per $100 surtax when the property is something other than a single-family residence. By custom the seller usually pays this tax, but the contract controls.

Title insurance and closing fees

Florida title insurance premiums are set by state regulation, so the premium for a given price is largely the same from company to company. In most Florida counties, the seller customarily pays for the buyer's owner's title policy and chooses the title company. In a few counties, including Miami-Dade and Broward, the buyer customarily pays. Either way, it is negotiable and written into the contract.

Title companies also charge a settlement or closing fee, and there may be charges for lien searches, municipal lien searches, courier fees, and recording the release of your mortgage.

Property tax proration

Florida property taxes are billed in November for the current calendar year, so they are paid in arrears. At closing, the seller typically credits the buyer for the taxes from January 1 through the day of closing, because the buyer will pay the full year's bill. Any unpaid taxes from prior years are paid from your proceeds.

Mortgage payoffs, liens, and other debts

Your mortgage, any home equity line, and other recorded liens are paid from the sale proceeds. The payoff includes interest through the payoff date and sometimes small fees. Judgments, code enforcement liens, and unpaid association assessments found in the title search generally must be paid or resolved before the buyer receives clear title.

HOA and condo association costs

If the property is in an association, expect an estoppel certificate fee, which Florida law caps but which commonly runs a few hundred dollars, plus any unpaid dues and special assessments. Some associations also charge transfer or application fees, which the contract may assign to either party.

Real estate commissions

If you list with an agent, commission is usually your largest single cost. Commissions are negotiable, and since industry rule changes in 2024, compensation for a buyer's agent is negotiated separately from the listing. Ask for all commission terms in writing before you sign a listing agreement.

An illustrative example

For a $350,000 sale outside Miami-Dade, a seller's costs might include:

  • Documentary stamp tax: $2,450
  • Owner's title insurance, where the seller pays by local custom: roughly $1,800
  • Settlement fee, lien searches, and recording charges: varies by title company
  • Property tax proration: depends on the closing date and the annual bill
  • Commission, if the home is listed: negotiable, and often the largest cost
  • Mortgage payoff: whatever remains on the loan

Closing costs in a direct cash sale

When you sell directly to a buyer, there is no listing commission. The contract spells out who pays the documentary stamp tax, title charges, and closing fees, and some buyers agree to cover more of them. Before you sign with any buyer, including us, ask for a written estimate of your net proceeds so there are no surprises on closing day.

Frequently asked questions

Does the seller pay doc stamps in Florida?

By custom, yes. The seller usually pays the documentary stamp tax on the deed, although the parties can agree otherwise in the contract.

Who pays for title insurance in Florida?

It depends on the county. In most Florida counties the seller customarily pays for the owner's policy. In a few, including Miami-Dade and Broward, the buyer customarily pays. The contract controls.

Are seller closing costs negotiable?

Many are. Tax rates are fixed, but who pays each cost, as well as commissions and some fees, can be negotiated.

Will I owe capital gains tax when I sell?

It depends on your situation. Many homeowners qualify for the federal exclusion of up to $250,000 of gain, or $500,000 for married couples filing jointly, on a primary residence. Florida has no state income tax. Ask a tax professional about your specifics.

This guide is general information, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified professional about yours.