We understand that the process of
buying and selling condos and homes
in Miami and Miami Beach can be
confusing and difficult to
understand. So, we've created
this web page with tools and tips
for buyers and sellers of real
estate in Florida.
Whenever you buy or sell a
condo or home, you have closing
costs. Two of your biggest
expenses are government fees and
title insurance (for buyers).
If you finance your purchase,
there are additional taxes and
fees that can contribute to
higher closing costs. Here
is a very simple guide to some
of your typical expenses.
Buyers of Real Estate:
- Title Insurance - about
0.4% of your purchase price
- State Note Taxes - about
0.35% of your LOAN amount
- State Intangible Tax -
about 0.2% of your LOAN
amount
- The above two State fees
are not due on all-cash
transactions
- Closing Agent Fees -
about $1500
- Points on your LOAN, if
applicable
- Lender application and
appraisal, if applicable -
about $1000
These are just estimates, and
they may not be entirely
accurate. Your lender will
give you a proper good faith
estimate. There are
normally other charges, like
prepaid interest and prepayment
of property taxes for example.
Colonial America Title
Services is our in-house closing
agency/title company. They
have a Closing Cost Calculator
that you can try for free.
LINK TO CLOSING COST CALCULATOR.
Sellers of Real Estate:
- State Deed Taxes - about
0.6% of your selling price
- Closing Agent Fees -
about $1000
There may be other charges,
like prepaid interest and a
prepayment of property taxes.
Items That Affect Both Buyers
and Sellers:
When there are costs and
expenses associated with the
ownership of the condo or home,
the closing agent will need to
prorate these expenses at
closing. This means that
on the day of the closing, the
new owner takes over
responsibility for paying these
expenses. These expenses
can include condo maintenance
fees, property taxes,
memberships and other items.
- When the seller has
pre-paid for these expenses,
he or she must be reimbursed
at closing for the portion
of those expenses that occur
after the closing date.
So, if the seller has
prepaid the condo
maintenance fees, and the
condo closes on the 15th of
the month, half of the fees
paid will be refunded to him
at the closing.
- When there is a future
expense that the seller has
not yet paid for, the seller
will need to make a payment
for these expenses at
closing. For example,
if we guess that the
property tax bill on
November 1st will be
$10,000, and the condo
closes in June, we would
expect the seller to pay
$5,000 at closing to be
applied to the tax bill
later that year. This
is because the seller was
the owner from January
through June.
If you have questions about
closing costs, you can contact
LISA PEARSON at Colonial America
Title Services. Or visit
their website (http://www.ca-title.com/)
and fill out a request for
information form (look for the
CONTACT US link on the top of
the page).
