In Florida, who pays which closing costs is not fixed by statute. It is negotiated and set by the purchase contract, and local customs vary by county. A real estate closing attorney reviews that contract, the title commitment and the deed, explains your obligations, and makes sure the deed is signed and recorded correctly.
Most of the decisions that shape a closing are made weeks earlier, when the purchase contract is signed. The contract sets the price and deposit, the deadlines for inspections and financing, who chooses and pays for title insurance, how taxes and association dues are prorated and what happens if a deadline is missed. By closing day the paperwork mostly carries out what the contract already says. That is why our closing work, part of our real estate law practice, starts with the contract.
Contract review before you sign
Many Florida transactions use standard form contracts with blanks and checkboxes. Those choices matter. Before you sign we look at:
- The deposit amount, who holds it and when it becomes non refundable.
- Inspection and financing periods, and exactly how and when you must give notice to cancel.
- Title provisions: how long the buyer has to object to title defects and what the seller must do about them.
- Who pays for the owner's title policy, documentary stamp taxes, survey, association estoppel letters and other charges.
- Prorations of property taxes, rents and association assessments.
- Any addenda, such as condominium or homeowners' association disclosures, or an "as is" provision.
Who pays closing costs in Florida?
There is no Florida statute that assigns every closing cost to the buyer or the seller. The purchase contract decides, and the parties can negotiate it. Local custom, which differs from county to county, often shapes the default choices printed in a form contract, but custom is not a rule and can be changed by agreement. If you want a particular allocation, for example a seller credit toward the buyer's costs, it needs to be written into the contract. We read the contract with you so there are no surprises on the closing statement.
Title search, title commitment and title insurance
Before a title insurer can issue a commitment or policy, section 627.7845 requires it to determine that the title is insurable based on a reasonable search and examination of title and other necessary information. The result is a title commitment, which lists the requirements that must be met before closing, such as paying off an existing mortgage or recording a corrective document, and the exceptions the policy will not cover, such as recorded easements or restrictions.
We review the commitment with you, explain each exception in plain language and follow up on requirements. An owner's title policy protects the buyer against covered title defects. A lender's policy protects only the lender, even though the buyer often pays for it.
If you have a contract in hand or a closing date coming up, ask for a free consultation and send us the contract and title commitment.
The deed and recording
Florida has firm requirements for deeds. Under section 689.01, a deed conveying real estate must be signed in the presence of two subscribing witnesses. Section 695.26 adds requirements for recording, including each signer's and witness's name printed beneath the signature with a post office address, the name and address of the person who prepared the document, the grantee's name and address, and blank space at the top of the pages for the recording office.
Where the deed is recorded depends on the county. In Broward County, deeds are recorded by the county's Records, Taxes and Treasury Division. In Orange County, the Orange County Comptroller's Official Records Department records them, and it notes that a deed recorded without two subscribing witnesses may not be recognized by the Property Appraiser for ownership changes. Families transferring property among themselves should also read our guide to quitclaim deeds in Florida. A deed that is rejected or recorded with defects can create a title problem that surfaces years later, sometimes requiring real estate litigation such as a quiet title action to fix.
Condominium and association properties
Buying into a condominium or a community with a homeowners' association adds documents to review. The association typically issues an estoppel certificate confirming what the seller owes in assessments and other charges, so those amounts can be settled at closing. Some associations must approve a new owner or tenant under their governing documents, which can affect the closing date. The declaration, bylaws and rules also control what you can do with the property, from rentals to pets to renovations, so we review them with you during the contract period rather than after you own the unit.
Attorney or title company?
Florida does not require an attorney for every closing, and many closings are handled by title agents. The question is what you need. A title agent's role is to close the transaction and issue title insurance. An attorney you hire represents you: we can advise you on the contract, negotiate changes, explain the title exceptions, and spot problems such as an estate sale where the seller's authority depends on a probate order, a property titled in a trust or a company, or a deed from a prior owner that was never properly recorded.
After closing
If the property will be your permanent home, remember the homestead property tax exemption. It is applied for through the county property appraiser, and under section 196.011 the application is due on or before March 1 of the tax year. The exemption does not transfer automatically from the prior owner.
Commercial closings
Commercial purchases add layers such as due diligence periods, existing leases and tenant estoppel certificates, zoning review and entity ownership. Our commercial real estate page explains those steps. Clients in Broward County can meet with us at our Fort Lauderdale office.
