All real estate transactions include both fixed costs and variable costs. Fixed costs stay the same regardless of purchase price, and rarely change, however, variable costs will fluctuate pending on the purchase price. The following is a fairly accurate estimate of all fixed costs associated with a closing.
|Courier and Mailing Fees||$50.00|
|Recording Costs||$20.50 (est.)|
|Total Fixed Costs||$710.50|
The pricing table below shows the estimated total costs of closing. The table includes all fixed costs from above in addition to the variable costs of Documentary Stamp Taxes and the Owner’s Title Insurance Policy Premium (both of which are promulgated rates set by the State of Florida and legislation) based on various sample purchase prices
|Purchase Price||Fixed Costs||Title Premium||Doc Stamps||Total Estimated Closing Cost|
In Florida, to calculate your documentary stamp tax, take the purchase price of your property and multiply it by .007. This will tell you how much your tax will be. I.e. If you sell your house for $100,000, then your documentary stamp tax will be $700.
If you are getting a loan from a bank, you will be charged intangible taxes as well as documentary stamps tax on the loan. In Florida, the intangible tax plus documentary stamp tax cost is $00.0055 per dollar. So, for a loan of $100,000, you will pay $550 in intangible taxes.
The cost of title insurance will vary based on the purchase price of the property. The price of title insurance is regulated by the state that the property is located in. For instance, Florida regulates title insurance premiums and no matter what title closing company you go to, the title insurance premium will always be the same. Further, your title insurance premium is a onetime payment at your closing.
The Florida rates for title insurance are as follows:
Prorations occur when the buyer or seller pays for services in advance, or willowe something in the future, for the property. The most common of these are taxes and home owner’s association/maintenance dues. Typically, all taxes are paid at the end of the year, whereas, homeowner’s association (HOA) dues are usually paid at the beginning of each month, quarter, or year. Let’s look at an example: we have a closing scheduled for June 15th. The seller has not paid the end of the year taxes but has paid the monthly HOA dues. Now, is it fair for the buyer to pay for ALL of the year’s taxes when the buyer only owns the property for half of the year? Is it fair for the seller to pay for half of a month’s HOA dues for the buyer? No. So, at the time of closing, Trusted Title will adjust for this. We will credit the seller, and debit the buyer, for half a month’s HOA dues. We will also credit the buyer, and debit the seller, for 6 months and 15 days of taxes (if taxes are paid on December 31).
Commercial closings encompass everything stated above but have even more possible variables than timeshare and residential closings combined. If you have a commercial closing and have questions regarding the possible closing costs, please give us a call at (904) 321-9108.