Real Estate Tips

                        RULES OF THUMB FOR TYPICAL FLORIDA 
                               CLOSING COST RESPONSIBILITIES:

Excerpt from Florida Real Estate Principles, Practices & Law 23^rd Edition

Items Credited to Seller

Total purchase price
Other prepaid items

Items Debited to Seller 

Mortgages Assumed or Paid Off
Mortgages Newly Created – Held By Seller
Prorated Taxes, Interest, Advance Rent*
Security Deposits
State Documentary Stamps on The Deed**
Broker’s Commission
Title Insurance ( Owner’s Policy)
Preparation of Deed -
Attorney's Fees (If Any)

Items Credited to Buyer 

Earnest Money Deposit
Mortgages Assumed
Mortgages Newly Created
Prorated Property Taxes (City and County)*
Prorated Unpaid Interest*
Prorated Advance Rent*
Security Deposits 

Items Debited To Buyer 

Purchase Price
Title Insurance (Mortgagee’s Policy)
State Intangible Tax on the Mortgage****
State Documentary Stamp Tax on the Note***
Recording of the Deed --
Recording of the Mortgage --
Attorney’s Fees ( If Any)
Preparation of Mortgage and Note -

Further Explanations 

*  Property Taxes Are Paid In Arrears (At The End of The Tax Year). 

** State Doc Stamp Tax On Deed is assessed at the rate of  70 cents for each $100 of the full purchase price (or any fraction of $100). Doesn’t matter if purchase was done all 
in cash, etc. It is one-time tax and not paid annually. Law requires seller delivers recordable deed. 

***State Doc Stamp On Notes is $.35 per $100, or fraction thereof, on the face value of 
promissory note. This tax is paid on all new and assumed mortgages. In an assumption, 
the borrower pays the tax on the unpaid balance of the note. The tax is due when the note 
is executed. Buyer’s fee. 

****State Intangible Tax On Mortgages evolves around assumable mortgages. Figuring 
these type of mortages shouldn’t be taxed twice there is a different equation that works 
out to two mills ($.002 or two-tenths of one cent) per dollar of debt. This indicates that 
the mortgage has been recorded and the tax has been paid to either the clerk of the circuit 
court or to the county comptroller. 

- Preparation of Documents are assigned to person that requires documents. For example,
the seller must prep for the deed and the buyer must prep for the mortgage and note. 

-- Recording Fees are assigned to party it benefits. For example, the buyer wants the 
deed recorded even though the seller paid for its preparation. 

Other Points of Interest 

Broker’s commission is usually paid by seller.

Buyers should protect their interest by obtaining owner’s title insurance.

Liens are the responsibility of the seller. At the time of closing, all liens must be satisfied by the seller, or agreement must have been reached between the buyer and the seller regarding disposition of liens.

Note:  These applications were applicable August 3, 2000 and are subject to change thereafter. Always check for up-to-date information with your Title Company.