Your offer is accepted. Before you get the keys, you bring one more payment to closing. It covers your down payment and closing costs, minus credits. This note covers the Broward closing costs that usually land on the buyer, with one worked example.
What counts as a buyer closing cost in Broward County?
Closing costs are the charges to finish the sale and record your loan. Most fall into four groups.
- Government charges: Florida taxes on the mortgage and county recording fees.
- Title charges: title insurance, endorsements and your closing agent’s fee.
- Lender charges: lender or origination fees, any points you buy, the appraisal and the credit report.
- Prepaids and escrow: interest, homeowner’s insurance and a starting balance for future bills.
Your contract decides who pays what. Under the Florida Realtors and Florida Bar AS IS contract, each side pays its own closing services fee. Inspections and a survey are the buyer’s cost.
Who pays for title insurance in Broward?
Title insurance covers ownership problems a search can miss. The owner’s policy protects you. The lender’s policy protects the lender.
The contract lets the parties choose who pays. Option 9(c)(iii) is the regional option for Broward. Under it, the buyer picks the closing agent and pays for the owner’s policy, the lender’s policy and endorsements. The seller pays for the title search, up to $200 if that blank is left empty, plus the tax and lien searches. Check which option your contract uses.
Florida sets title premiums by rule. The owner’s policy is $5.75 per $1,000 of price up to $100,000, then $5.00 per $1,000 up to $1 million. On a $450,000 home that is $2,325. A lender’s policy issued at the same time is $25 when the loan is not larger than the price. Lenders usually ask for endorsements. The common Florida Form 9 is 10% of the two premiums. A lower reissue rate can apply if the seller’s owner’s policy is under three years old.
What taxes do you pay on a Florida mortgage?
Florida charges two taxes when a mortgage is recorded. Under the standard contract, the buyer pays both.
- Documentary stamp tax on the note: $0.35 per $100 of the loan, with any part of $100 rounded up. There is no cap on a recorded mortgage.
- Nonrecurring intangible tax: 0.2% of the loan, which is $2 per $1,000.
On a $360,000 loan, that is $1,260 in stamps and $720 in intangible tax. A cash buyer pays neither.
Broward County charges $10 for the first page and $8.50 for each added page to record your deed and mortgage.
What are prepaids and escrow at closing?
Prepaids are not fees. They are costs of owning the home, paid ahead at closing.
- Prepaid interest: from closing day through the end of that month. Close on April 15 and you pay 16 days. Your first payment is June 1.
- Homeowner’s insurance: most lenders want the first year paid at closing.
- Escrow: a starting balance for future tax and insurance bills. The number of months depends on the lender and the closing date.
One credit helps. Florida property taxes are paid in arrears, with the bill sent in November. So the seller credits you from January 1 through the day before closing.
What extra costs do FHA and VA buyers pay?
An FHA loan adds an upfront mortgage insurance premium of 1.75% of the base loan, usually added to the loan. The annual premium on a standard-size 30-year loan is 0.55% with less than 5% down and 0.50% with 5% or more.
A VA loan has a funding fee instead. On first use it is 2.15% with less than 5% down, 1.5% with 5% or more, and 1.25% with 10% or more. Veterans who receive VA disability compensation are exempt. See our VA buyer page.
When either fee is financed, the mortgage taxes are figured on the larger loan.
What if you buy a condo or a home in an HOA?
The buyer pays the association application fee. For a condo, Florida caps it per applicant. The Florida Department of Business and Professional Regulation (DBPR) transfer fee notice posts the current cap, which it lists as $150. HOA fees vary. The seller pays for the estoppel certificate, which shows what the owner owes. That fee is capped at $299, plus more for a rush or a past-due account.
How much cash do you need to close on a $450,000 Broward home?
Here is one estimate: a $450,000 single-family home, conventional loan, 20% down, 30 years at a sample 7.00% rate, closing April 15, 2027. The buyer pays the owner’s policy. Lines marked sample are placeholders, not quotes. The tax credit uses a sample $7,800 tax bill for the seller, less the 4% November discount, times 104 days out of 365. That bill is the seller’s, so it differs from the 2% figure used for your payment.
| Item (estimate) | Amount |
|---|---|
| Down payment, 20% | $90,000.00 |
| Owner’s title policy | $2,325.00 |
| Lender’s title policy | $25.00 |
| Endorsements, Form 9 and ALTA 8.1 | $260.00 |
| Mortgage stamp tax | $1,260.00 |
| Intangible tax | $720.00 |
| Recording, deed and mortgage (sample, 18 pages) | $156.00 |
| Lender fees and appraisal (sample) | $1,500.00 |
| Inspections and survey (sample) | $800.00 |
| Settlement fee (sample) | $450.00 |
| Closing costs before prepaids | $7,496.00 |
| First-year homeowner’s insurance | $6,100.00 |
| Escrow, 3 months tax ($2,250.00) and 2 months insurance ($1,016.67) | $3,266.67 |
| Prepaid interest, 16 days | $1,104.66 |
| Prepaids | $10,471.33 |
| Tax credit from seller, Jan 1 to Apr 14 | -$2,133.57 |
| Deposit already paid | -$10,000.00 |
| Estimated cash to close | $95,833.76 |
The estimated monthly payment is $3,653.42: $2,395.09 principal and interest, $750.00 taxes and $508.33 insurance. Taxes use 2% of price and insurance uses $6,100 a year, the same planning figures as our mortgage calculator. Your real tax bill depends on the city and assessed value. Escrow uses the full $6,100 a year, so it can differ by a cent from the rounded monthly figure.
To run your own numbers, try our buyer net sheet.
What does the seller usually pay in Broward?
Under the standard contract, the seller pays the documentary stamp tax on the deed: $0.70 per $100 of price, or $3,150 on a $450,000 home. The seller also pays the estoppel fee, their own closing fee and the cost to record the release of their loan. Under the 9(c)(iii) option, the seller also pays the title, tax and lien searches. Real estate compensation is set by agreement. No rate is standard.
How do you protect your closing money from wire fraud?
Scammers send fake wiring instructions that look like they came from a title company or an agent. Before you wire, call your closing agent at a number you already know, not one from the email. If instructions change by email, stop and call. A sent wire can be very hard to get back.
What else do Broward buyers ask about closing costs?
Can the seller pay part of my closing costs?
Yes, if the contract says so. Ask in the offer. Loan programs set limits. VA caps seller concessions at 4% of reasonable value.
When will I see my real numbers?
Your lender sends a Loan Estimate within three business days of your application, and you must receive a Closing Disclosure at least three business days before closing. Compare the two.
Does a cash buyer pay closing costs?
Yes, but fewer. There are no mortgage taxes, lender’s policy, prepaid interest or escrow. The owner’s policy, deed recording and settlement fee still apply.
Is my deposit on top of the cash to close?
No. Your deposit is credited at closing.
Want a second look at your Loan Estimate? Call the Melecia Johnson Team at (954) 980-0006 or reach us through our contact page. Melecia Johnson, Florida licensed real estate broker, BK3251569, Damelecia, Inc.
Estimates only. This is not a Loan Estimate or a Closing Disclosure, and it is not legal or tax advice. Rates and fees can change. Ask your lender and your closing agent for your actual costs.
Sources: Sections 201.02, 201.08 and 199.133, Florida Statutes, and the Florida Department of Revenue; Rules 69O-186.003 and 69O-186.005, F.A.C.; Broward County Records, Taxes and Treasury fee schedule; Florida Realtors and Florida Bar AS IS contract; DBPR estoppel and transfer fee notice; Regulation Z, 12 CFR 1026.19; HUD Mortgagee Letter 2023-05; VA.gov funding fee page.
Leave a Reply