Closing, Homestead & Tax Costs
Budget beyond the purchase price.
Buyer closing costs
Buyers typically pay loan origination and appraisal fees, title search and lender title policy, recording fees, survey if required, and prepaid property taxes and insurance escrows. Budget roughly 2–5% of purchase price on financed transactions; cash purchases are lower but not zero.
Documentary stamps and intangible tax
Florida imposes documentary stamp tax on deeds and notes. Sellers usually pay deed stamps; buyers pay note stamps when financing. Intangible tax on mortgages applies to new loans. Your closing disclosure itemizes every line — review it against your lender estimate.
Homestead exemption
Florida homestead reduces assessed value for primary residents and caps annual assessment increases under Save Our Homes. File with the county property appraiser after you occupy — deadlines and forms vary by county (Palm Beach, Broward, Martin). Homestead also provides creditor protection benefits under Florida law.
Property tax proration
Taxes are prorated at closing based on the closing date. If the seller prepaid the year, you reimburse their share. Escrow accounts with your lender spread future tax and insurance payments monthly.
Closing budget checklist
- Title, settlement, and lender fees reviewed on CD
- Prepaid property taxes and insurance escrows
- HOA or condo move-in and application deposits
- Initial utility transfers and mailbox setup
- Homestead application filed after occupancy
- Wire amount confirmed by phone with title company