Selling real estate in Florida involves more than just finding a buyer and signing a contract. As a seller, there are several documents you’ll need to provide before closing, along with certain costs that are typically your responsibility. Understanding these requirements in advance helps ensure a smooth and timely closing.
Below is a breakdown of what sellers should prepare and the most common closing costs in Florida.
What Sellers Need to Provide Before Closing
When working with a title company, sellers will need to provide documentation that allows the transaction to move forward and ensures the property can transfer with clear title.
1. Government-Issued Identification
All sellers listed on the property must provide a valid photo ID (such as a driver’s license or passport). This is required to verify identity and prevent fraud during the closing process.
2. Mortgage Payoff Information
If there is an existing mortgage or an equity line of credit on the property, the title company will request a payoff statement from the lender. Sellers should provide:
Lender name
Loan number
Contact information for the lender
The payoff statement confirms the exact amount needed to satisfy the loan at closing.
3. Property Information
Sellers may be asked to provide details about the property, including:
HOA or condominium association information (if applicable)
Property management contact details
Any recent improvements or permits
If the property is located in a community with an HOA or condo association, an estoppel certificate will typically be required.
4. Survey (If Available)
If the seller has a prior property survey, it can sometimes help speed up the closing process and reduce costs for the buyer.
5. Keys, Garage Remotes, and Access Devices
Before closing, sellers should prepare to transfer:
Property keys
Mailbox keys
Garage remotes
Gate or community access devices
6. Wire Instructions for Sale Proceeds in the Name of the Seller
Same-name requirement: Funds will only be wired to accounts matching the seller’s name(s) on the deed.
Verification: Title company will confirm the instructions directly with the seller via phone including the following:
Bank name and branch address
Bank routing number for wire transfer
Seller’s account number
Typical Seller Closing Costs in Florida
Here are the most common seller expenses:
Real Estate Commission
In many Florida transactions, the seller pays the commission for both the listing and buyer’s agents. This often ranges from 5% to 6% of the sale price, though it can vary.
Title Insurance (Owner’s Policy)
In some Florida counties, it is customary for the seller to pay for the owner’s title insurance policy, which protects the buyer against title defects.
Documentary Stamp Tax on the Deed
Florida requires a tax when transferring real estate ownership. The seller typically pays the documentary stamp tax on the deed, which is $0.70 per $100 of the sale price in all counties except Miami-Dade which is $0.60 per $100 of the sale price for residential properties. In Miami-Dade county there is an additional surtax of $0.45 per $100 that applies only to non-single-family property (such as commercial property, multifamily, or vacant land transfers).
An example of documentary stamps calculation for a residential property not located in Miami-Dade county is as follows:
$500,000 sale price = $3,500 documentary stamp tax
Title and Closing Fees
While this can vary by contract, sellers may be responsible for certain settlement or title-related fees.
HOA or Condo Estoppel Fees
If the property is part of an HOA or condominium association, an estoppel certificate fee is often required to confirm dues and outstanding balances.
Mortgage Payoff
If the seller has a mortgage, the balance will be paid off at closing. Lenders may also charge:
Payoff processing fees
Wire and/or satisfaction of mortgage recording fees
Other Liens to be Paid at Closing include but are not limited to the following:
PACE LOANS: The loan is repaid via property tax assessments, usually added to the annual tax bill. Common PACE improvements include solar panels, hurricane-resistant windows, or energy-efficient HVAC systems.
IRS LIENS: If the seller has an IRS lien it attaches to the property and it must be paid in full at closing.
Prorated Property Taxes and HOA or Condominium Association Dues
Property taxes and association dues are typically prorated between the buyer and seller based on the closing date.
Recording fees
There may be required affidavits or other documents to be recorded to clear title.
How a Title Company Helps the Seller
A title company plays a key role in coordinating the closing process. This includes:
Conducting a title search
Clearing title issues
Preparing settlement statements
Coordinating with lenders and real estate agents
Handling the secure transfer of funds
The goal is to ensure the property transfers legally and the seller receives their proceeds safely.
Preparing the right documents and understanding potential closing costs can make selling your Florida property much smoother. By working with an experienced title company, sellers can navigate the closing process confidently and avoid unexpected delays.
If you’re planning to sell your home in Florida and have questions about the closing process, our team is here to help guide you every step of the way.