What are Closing Costs?

Dated: March 29 2022

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Closing costs are the fees required to complete a real estate transaction and are paid at closing. While both buyers and sellers have additional costs when it comes to buying and selling a home, all parties should be familiar with the breakdown of these costs. Although the costs are not split equally, there are spelled out in the sales contract and can be negotiated as well.  

Costs to be Paid by Seller:

 Ø  Document preparation by closing agent

 Ø  Documentary stamp taxes and surtax on deed

 Ø  HOA/Condominium Association estoppel fees 

 Ø  Recording and other fees needed to cure title 

 Ø  Title search and lien search charges 

 Ø  Proration of property taxes

 Ø  Real estate commission

Costs to be Paid by Buyer: 

 Ø  Document preparation by closing agent

 Ø  Taxes and recording fees on notes and mortgages 

 Ø  HOA/Condominium Association application/transfer fees

 Ø  Loan origination fees and points

 Ø  Recording fees for deed and financing statements 

 Ø  Owner's title insurance policy

 Ø  Lender's title policy and endorsements

 Ø  Buyer's inspections 

 Ø  Appraisal fees 

 Ø  Survey and elevation certification

 Ø  All property related insurances 

 Ø  Proration of property taxes

Keep in mind a buyer will typically pay between 3-4% of the purchase price in closing costs, and the seller will typically pay between 8-10% of the sale price in closing costs. Obviously, a few of these items may change based on the terms of the sales contract and the conditions of your mortgage. 

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Seanna Lindback

Seanna has a unique perspective of the Florida Keys. As a second-generation Conch with such deep roots in the community, she has a deep knowledge and appreciation of our unique islands. With experienc....

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