Closing day should feel exciting, not confusing. If you are buying or selling in Miami, the long list of line items on a Closing Disclosure can be a shock. You deserve a clear, local guide that explains what each fee is, who usually pays it, and how to estimate your bottom line.
In this guide, you will learn typical buyer and seller closing costs in Miami-Dade, the Florida taxes that matter, simple formulas to estimate them, and what you can negotiate. You will also see where to verify current rates before you sign. Let’s dive in.
Buyer closing costs in Miami-Dade
You will see four main buckets: lender fees, title and recording charges, prepaid items, and third-party services. If you are financing, your lender’s fees and Florida mortgage taxes make up a big share of the total.
Common buyer line items
- Loan-related fees (if financed): application or origination fee, processing and underwriting, credit report, appraisal, flood cert, and rate-lock or tax service fees.
- Title insurance: lender’s title policy is required when you get a mortgage. An owner’s title policy is optional for a buyer, and in Miami-Dade it is often paid by the seller, but this is negotiable.
- Florida mortgage taxes: documentary stamp tax on the promissory note and the intangible tax on the new mortgage (see formulas below).
- Recording fees: county charges to record your mortgage and sometimes the deed. Buyers usually pay the mortgage recording fee.
- Prepaid items and escrow: initial deposits for property taxes and homeowners insurance. Lenders often collect a proration plus several months of reserves at closing.
- HOA or condo fees: transfer or application fees and initial assessments vary by association. Buyers often pay transfer fees while sellers often cover estoppel or clearance letters, but this is negotiable.
- Inspections and surveys: general home inspection, WDO inspection, and a survey if required by your lender.
- Settlement and misc: title company settlement fee, wire fees, overnight or courier.
How to estimate buyer mortgage taxes
Florida charges two taxes when you take a new mortgage.
- Documentary stamp tax on the promissory note: typically $0.35 per $100 of the mortgage amount. Formula: mortgage amount × 0.0035.
- Intangible tax on the new mortgage: typically $2.00 per $1,000 of the mortgage amount. Formula: mortgage amount × 0.002.
Always verify current rates with the Florida Department of Revenue and confirm the exact dollar amounts with your lender and title company.
Seller closing costs in Miami-Dade
Seller costs are led by commission and any mortgage or lien payoffs. Florida also charges a documentary stamp tax on the deed. In South Florida, many sellers pay for the owner’s title policy, but contracts can assign this differently.
Common seller line items
- Real estate commission: commonly around 5% to 6% of the sale price in Miami practice, split between listing and buyer’s agents. The percentage is negotiable and set in your listing agreement.
- Payoffs: any existing mortgages, HELOCs, judgments, liens, or association balances are paid at closing.
- Documentary stamp tax on the deed: typically a seller responsibility in Florida practice. See the formula below.
- Owner’s title insurance premium: often seller-paid in Miami-Dade. Premiums follow the Florida rate schedule and depend on the sale price.
- Closing and recording: title company settlement fee, recording fees for releases or satisfactions, and any city transfer charges if applicable.
- HOA or condo fees: estoppel letter and administrative or transfer fees as required by the association. These may be split or negotiated.
How to estimate the deed tax for sellers
- Documentary stamp tax on the deed: typically $0.70 per $100 of the sale price. Formula: sale price × 0.007.
Confirm the exact rate and calculations with the Florida Department of Revenue and check any county surcharges with the Miami-Dade Clerk before finalizing your numbers.
Typical total ranges to budget
- Buyers with financing: plan for about 2% to 5% of the purchase price in closing costs, excluding your down payment. The range depends on loan type, title charges, prepaids, and whether the seller covers the owner’s title policy.
- Cash buyers: costs are often lower because there is no lender or mortgage taxes. You will still see title, recording, inspections, and any association fees.
- Sellers: commission is typically the largest line item and is often 5% to 6% of the sale price. After commission, plan for another 1% to 3% for the deed tax, title and settlement fees, and recording, plus any payoff and lien releases.
Every property and association is different. Miami-Dade is a high-cost market for title insurance and transfer-related fees. Get a custom estimate for your address before you list or write an offer.
What is negotiable in Miami
Several items can move between buyer and seller based on the market and your contract.
- Owner’s title insurance premium: local custom often has the seller pay, but you can negotiate for the other party to cover it or split it.
- Deed stamps and recording: while the deed documentary stamp is commonly a seller cost, you can negotiate how fees are assigned.
- Seller concessions: sellers can credit some or all of the buyer’s closing costs at closing. Loan programs set limits, so ask your lender about your cap.
- Repairs and credits: instead of doing repairs, a seller may offer a credit at closing.
- Commission: the listing rate and splits are negotiable with your agent before you go to market.
- HOA and condo fees: transfer and estoppel fees are often negotiable in the contract.
Use market context when you negotiate. In a seller’s market, buyers may offer to take on more costs. In a buyer’s market, sellers may pay more to attract stronger offers.
Sample calculations you can adapt
These examples show how to apply Florida tax formulas. Always verify current rates and run exact figures with your lender and title company.
- Example sale price: $500,000. Seller documentary stamp tax on the deed: $500,000 × 0.007 = $3,500.
- Example mortgage amount: $400,000. Buyer documentary stamps on the note: $400,000 × 0.0035 = $1,400. Buyer intangible tax on the mortgage: $400,000 × 0.002 = $800.
Quick plug-in templates you can use today:
- Deed tax estimate for sellers: your sale price × 0.007.
- Buyer note stamps: your loan amount × 0.0035.
- Buyer intangible tax: your loan amount × 0.002.
Quick checklist for an accurate estimate
- Get a Loan Estimate from your lender that shows your loan-related fees and the maximum allowed seller concessions for your loan program.
- Ask your listing agent for a seller net sheet that includes commission, documentary stamps, title costs, and estimated payoffs.
- Request a preliminary closing estimate from a local title company that reflects Miami-Dade practice and county fees.
- Verify Florida documentary stamp and intangible tax rates, then apply the formulas to your sale or loan amount.
- Confirm Miami-Dade recording fees with the County Clerk for your specific documents.
- Check HOA or condo transfer and estoppel fees with the association or manager.
- Confirm the exact owner’s and lender’s title premiums using the Florida title insurance rate schedule or by asking the title company.
Where to verify rates and documents
You should confirm any dollar amounts with authoritative sources before you sign a contract or finalize a settlement statement.
- Florida Department of Revenue: documentary stamp and intangible tax rates and calculation rules.
- Miami-Dade County Clerk of the Courts: official records and recording fee schedule.
- Florida Office of Insurance Regulation: title insurance rate schedules and bulletins.
- Consumer Financial Protection Bureau (CFPB): Loan Estimate and Closing Disclosure requirements.
- Your lender and loan officer: loan-specific fees, escrow requirements, and seller concession limits.
- Your local title company or closing attorney: Miami-Dade specific estimates and who typically pays each fee.
Ready to run your numbers with a local pro?
If you want a precise, Miami-Dade specific estimate for your address and price point, let’s talk. Whether you are buying a condo in Coconut Grove or selling a single-family home in Pinecrest, you will get a clear plan for fees, taxes, and negotiation strategy tailored to your goals. Connect with Pam Mayers to get a custom closing estimate and a smooth path to the finish line.
FAQs
Who usually pays owner’s title insurance in Miami-Dade?
- In South Florida, the seller often pays the owner’s title policy, but this is negotiable and should be written into the contract.
How do I estimate Florida deed stamps as a seller?
- Multiply your sale price by 0.007 (which reflects $0.70 per $100) and verify the current rate with the Florida Department of Revenue.
What closing costs should a financed Miami buyer expect?
- Plan for lender fees, title and recording charges, Florida mortgage taxes, prepaids and escrow, HOA transfer fees, and inspections, typically totaling 2% to 5% of the price.
Can a seller pay part of my closing costs in Miami?
- Yes, sellers can offer concessions toward your closing costs, but your loan program sets limits, so confirm the allowable amount with your lender.
Are HOA and condo transfer or estoppel fees negotiable?
- Often yes; local practice varies by association, so assign responsibility in the contract after confirming exact fees with the HOA or management.
Where do I confirm recording fees for Miami-Dade closings?
- Check the Miami-Dade County Clerk of the Courts recording fee schedule and ask your title company for the exact total based on your documents.
