Closing Costs include the costs that are paid for a real estate Closing that are in addition to the Purchase Price being paid. Typical Closing Costs can include:
Escrow Fees – often there are expenses that need to be paid or applied upfront such as property taxes or insurance
Appraisal Fees – especially where a Lender is involved, an appraiser is needed to estimate the Property’s market value. There are professional Appraisers that can perform this service, which typically costs a few hundred dollars.
Flood Certification Fees – if the Property is in a flood zone, then a Lender providing the financing to a Buyer may require the Buyer to obtain flood insurance as part of the purchase transaction.
Property Taxes – the Buyer will likely have to pay a portion of the Property Taxes depending on the proration for the year. The Title Agent will determine the proration of the Property Taxes for the year of the purchase between the Seller and the Buyer.
Land Survey Fees – a survey is often performed, especially where a Lender is involved. The land survey is performed by a surveyor who determines the Property’s official boundaries and dimensions. These fees can also be several hundred dollars.
Recording Fees – as part of the Closing process, the Title Agent will record the Deed that transfers title to the Property from the Seller to the Buyer. The County Record’s Office for the County where the Property is located charges fees for the recording of the Deed.
Title Insurance – depending on the agreement between the Seller and the Buyer, one of the parties will have to pay the cost of the title insurance. This cost is a one-time insurance premium expense that covers the life of the policy.
How Much Does Title Insurance Cost? Title Insurance cost is paid for via a one-time premium that is paid at the time of the Closing. The Title Agent collects the premium at the Closing and issues the Title Policy to the Buyer. The premium amount is a set by Florida Statute 627.7825 and the Florida Administrative Code, Chapter 4-186, and is based on the Purchase Price. The title insurance rates are:
$5.75 per $1,000 for the first $100,000;
then, $5.00 per $1,000 should be added over $100,000 up to $1 million;
$2.50 per $1,000 over $1 million up to $5 million;
$2.25 per $1,000 over $5 million up to $10 million;
and $2.00 per $1,000 over $10 million coverage.