Key Takeaways
- Florida closings are typically conducted by title companies or attorneys, not real estate brokers
- Documentary stamp tax is paid by the seller at $0.70 per $100 of sale price (or $0.60 in Miami-Dade)
- Intangible tax on new mortgages is $0.002 per dollar (2 mills) of the mortgage amount
- Recording fees are paid by the party whose document is being recorded (deed by buyer, mortgage by buyer)
- Title insurance rates are set by the Florida Office of Insurance Regulation
Florida Closing Procedures
Florida real estate closings have specific requirements, taxes, and procedures.
Important: This section covers Florida-specific content only. For national real estate concepts, see our Real Estate Salesperson exam prep.
Who Conducts Closings
In Florida, closings are typically conducted by:
| Provider | Role |
|---|---|
| Title companies | Most common, especially residential |
| Attorneys | Required in some situations |
| Escrow companies | Less common |
Note: Real estate brokers do NOT typically conduct closings in Florida (unlike some states).
Documentary Stamp Tax
On Deeds
The documentary stamp tax is paid when a deed is recorded:
| Location | Rate |
|---|---|
| Most of Florida | $0.70 per $100 (or portion) |
| Miami-Dade County | $0.60 per $100 |
Who Pays
| Tax | Customarily Paid By |
|---|---|
| Documentary stamps (deed) | Seller |
| Documentary stamps (mortgage) | Buyer |
Calculation Example
Property sells for $350,000:
| Calculation | Amount |
|---|---|
| $350,000 ÷ $100 = 3,500 | 3,500 units |
| 3,500 × $0.70 | $2,450 doc stamps |
Intangible Tax
On New Mortgages
The intangible tax is paid on new mortgages:
| Rate | Calculation |
|---|---|
| 2 mills (0.002) | $0.002 per $1 of mortgage |
| Example | $280,000 mortgage × 0.002 = $560 |
Recording Fees
Recording fees are paid to the Clerk of Court:
| Document | Typical Fee |
|---|---|
| First page | ~$10 |
| Each additional page | ~$8.50 |
Who Pays Recording
| Document | Customarily Paid By |
|---|---|
| Deed | Buyer |
| Mortgage | Buyer |
| Satisfaction of mortgage | Seller |
Title Insurance
Rates
Florida title insurance rates are regulated:
| Feature | Details |
|---|---|
| Promulgated rates | Set by state |
| Based on | Purchase price or loan amount |
| One-time premium | Paid at closing |
Policies
| Policy Type | Protects |
|---|---|
| Owner's policy | Buyer's ownership interest |
| Lender's policy | Lender's mortgage interest |
Who Pays
| Policy | Customarily Paid By |
|---|---|
| Owner's policy | Varies by county custom |
| Lender's policy | Usually buyer |
Prorations
Common prorations at closing:
| Item | How Prorated |
|---|---|
| Property taxes | Annual, seller's portion to closing |
| HOA dues | Per period |
| Rent | For income property |
| Interest | For assumption |
Property Tax Proration
Florida taxes are paid in arrears:
- Tax year: January 1 - December 31
- Due: November 1
- Seller owes from January 1 to closing
- Credit to buyer at closing
What is the documentary stamp tax rate on deeds in most of Florida?
What is the intangible tax rate on new mortgages in Florida?