Closing Costs

By convention, in Broward County, Florida, the buyer pays for title insurance. However, the purchase contract might have the box checked that indicates it’s the seller’s responsibility. (The purchase contract is completed by the buyer’s agent and is first presented as a negotiable offer. Nothing is binding until the buyer and seller agree on the terms and signed and dated the form.)

A checked seller-pays box is obviously good for the buyer, and not so good for the seller. In my personal experience, this can be negotiated to follow the conventions. READ THE DOCS BEFORE YOU SIGN. In Florida, for some reason, the conventional paying party varies by county, and a Palm Beach County real estate agent (where the seller typically pays for title) may not be familiar with Broward’s quirks.

The rest of the closing costs are fairly straight forward. This isn’t an all-inclusive list, and some items won’t appear if the buyer is paying in cash and not receiving a mortgage loan. Lenders require that the first year of homeowner’s hazard insurance is paid before the closing (except for condominium buyers because condos have a master insurance policy that covers the common areas, and Florida doesn’t require additional hazard insurance). The lender may collect two-months reserve funds for Homeowner Association Fees (HOA) and property tax if these items are included in the monthly loan amount. They will also collect 2 months of Homeowner’s Insurance premiums (except for condos).

Buyer Closing Costs

• Down Payment
• Two months of property tax, hazard insurance, and HOA fees, if needed
• Land Survey
• Mortgage and Note taxes
• Mortgage recording fee
• Loan originator fee
• Lender fee
• Closing agent settlement fee
• Title Insurance

Seller Closing Costs

• Existing mortgage loan payoff
• Real estate commission
• Appraisal
• Deed transfer tax
• Closing agent settlement fee