What Are Seller Closing Costs?

Closing costs are the fees and expenses paid at the closing of a real estate transaction. Both buyers and sellers have closing costs, though they pay different items. As a seller, your closing costs are deducted from your sale proceeds at closing — you typically don't pay them out of pocket.

In Florida, seller closing costs (excluding agent commissions) typically total 1–3% of the sale price.

Florida Seller Closing Costs Breakdown

Documentary Stamp Tax on the Deed

This is a state tax on the transfer of real property. In Florida, the rate is $0.70 per $100 of the sale price (or $0.60 per $100 in Miami-Dade County).

• $200,000 sale: $1,400
• $300,000 sale: $2,100
• $400,000 sale: $2,800
• $500,000 sale: $3,500

Owner's Title Insurance

In Florida, it's customary for the seller to pay for the owner's title insurance policy, which protects the buyer against title defects. The premium is based on the sale price:

• $5.75 per $1,000 for the first $100,000
• $5.00 per $1,000 for amounts above $100,000

On a $300,000 sale, the owner's title insurance premium is approximately $1,575.

Note: In some Florida counties (Sarasota, Collier, Miami-Dade, Broward, and others), it's customary for the buyer to pay for title insurance. Local custom varies — your agent or title company will clarify what's standard in your area.

Settlement/Closing Fee

The title company or closing attorney charges a fee for managing the closing process — preparing documents, coordinating with all parties, and disbursing funds. This typically ranges from $500–$1,000.

Property Tax Proration

Florida property taxes are paid in arrears (you pay this year's taxes next year). At closing, you'll owe a prorated portion of the current year's taxes for the days you owned the home. The exact amount depends on your tax rate and closing date.

For example, if your annual property taxes are $3,600 and you close on July 1 (halfway through the year), you'd owe approximately $1,800 in prorated taxes.

HOA Estoppel Fee

If your home is in a homeowners association, the HOA charges a fee to provide an estoppel letter confirming your account status. This typically costs $100–$250.

Recording Fees

The county charges a fee to record the deed transfer in public records. This is typically $10–$20 and is sometimes paid by the buyer.

Wire Transfer Fee

If your proceeds are wired to your bank account, the title company may charge a small wire fee — typically $25–$50.

What Sellers Do NOT Pay in Florida

Unlike some states, Florida sellers typically do not pay:

• Transfer taxes on the mortgage (buyers pay this)
• The buyer's title insurance (lender's policy)
• The buyer's loan origination fees
• Home warranty (unless negotiated)

Seller Closing Costs vs. Agent Commissions

It's important to distinguish between closing costs and agent commissions. Commissions (typically 5–6% of the sale price) are separate from closing costs and are usually the largest expense for sellers. When people talk about "total selling costs," they typically mean commissions plus closing costs combined.

How to Reduce Seller Closing Costs

• Sell to a cash buyer: Fora Offers covers standard closing costs, so you don't pay them out of your proceeds
• Negotiate who pays title insurance: In some counties, this is negotiable
• Close at the end of the month: This minimizes the property tax proration you owe
• Shop for title companies: Settlement fees vary between companies