In a traditional, exclusive right to sell listing agreement, the seller agrees to pay typically 6% of the sale price in commission to the listing broker (i.e. seller’s broker) as long as a “ready, willing and able” buyer is found. This commission is often split equally in accordance with local MLS rules with the buyer’s agent, if any.
Title insurance protects the buyer of a home from defects in the title not caught by the title and municipal lien search, subject of course to certain exceptions to coverage. Title insurance is required by lenders if the buyer finances his or her home purchase. Title insurance is typically paid for by the seller in most Florida counties; however, it is customary in some counties like Miami-Dade, Broward, Sarasota and Collier for the buyer to pay for title insurance.
Florida levies a Documentary Stamp Tax on deed transfers, also known as a transfer tax, on sellers when real property is sold. In all Florida counties except Miami-Dade, the tax rate is 0.7% of the total consideration. In Miami-Dade county, the tax rate is 0.6% on single-family home sales and 1.05% on anything else.
The title search looks at the chain of title (i.e. the property’s ownership history) to see if there are any defects in the title (i.e. liens, judgments) and that the seller is the true owner of the property. A municipal lien search looks for code violations, water and sewer unpaid balances and open or expired permits. In Miami-Dade and Broward counties, it’s customary for the seller to pay for the title and lien searches.
An estoppel letter from the HoA or condo association is a legally binding document that confirms whether the seller is up-to-date with payments, the amount of any outstanding payments, the amount of any special assessments, the current rate of HoA dues or condo common charges and other pertinent information.
Typically $25 to $50, if any, to reimburse the escrow agent for bank fees.
Typically $400 to $600, charged by the Florida closing attorney and different from the settlement or closing fee which is usually paid by the buyer.
An approximately $300 fee charged to both the buyer and the seller, payable to the real estate broker, for document storage and other transaction related services. Can be disputed by the buyer who will usually be surprised by this charge.