First things first, where ever you buy residential real estate in the State of Florida, no matter what anyone tells you, there is no law that allocates the closing costs. What you ARE dealing with is the prevalent County customs and the terms of the Purchase and Sale Agreement. So for purposes of this discussion, we will discuss the customary Broward County Costs for an approximate $250,000 closing (which geographically includes Pompano Beach, Lauderdale-By-The-Sea, Lighthouse Point, and Fort Lauderdale, as well as other towns and cities).
A. Customary Allocation – Buyer’s Costs and Approximate amount.
1) Property Appraisal performed by a licensed appraiser – $450.00
2) Property Survey – $425.00
3) Inspection of Property – roof, a/c, appliances, general overall condition – $500.00
4) Insurance Premium for applicable coverage – Homeowner’s, Wind/Hurricane, Flood (based upon location in flood zone, or at your option for additional protection). Too many variables to provide estimate.
5) Mortgage Loan Fee – Based upon existence of mortgage, amount, lender, etc.
6) Documentary Stamps – Broward County $3.50 per each $1,000 of the mortgage you obtain.
7) Intangible Taxes – $2.00 per each $1,000 of mortgage amount.
8) Mortgage Recording Fee – If mortgage obtained, $10 for first page, $8.50 for each additional page.
9) Settlement and Closing Fee – $600.00
B. Customary Allocation – Seller’s Costs and Approximate Amount
1) Title Search – $250.00
2) Property Tax and Municipal Lien Search – $500.00
3) Commission to Real Estate Agent – 6% of total sales price
4) Abstract of Title – $275.00
5) Mortgage Payoff – Based upon what the Seller owes to its lender (deducted from what you owe the Seller at closing).
6) Proration of Real Estate Taxes – based upon the closing date and what was the yearly tax amount assessed.
7) Preparation of Documents/Attorney’s fee if title company. $500.00
8) Deed Stamps – $7.00 per $1,000 paid for property
9) Deed Recording Fee – $10.00 for first page and $8.50 for each additional page
Rather than relying on custom, there are a few areas that are up for negotiation as to who pays the costs. Virtually all of them surround title insurance policies. Also, it might include negotiations which will usually occur concerning the remediation of inspection results, which seem to never come out at $0.00. Before signing the Purchase and Sale Agreement and/or any other documents, make certain you consult with your real estate agent and/or attorney to determine whether there are circumstances which may provide you with a good argument concerning reallocation of customary costs. Be prepared that real estate agents will be most inclined to follow the custom and practice of your County, which may be different in the next County over.
Charles M. Levy
Real Estate Agent
Pompano Beach Realty Corporation