The buyer's closing costs
The following notes relate to buying a privately owned re-sale home. Buying new construction is different.
In Florida, the buyer's closing costs are low for a cash purchase, typically under $1000. These include charges by the title company for the title and lien searches and for administration of the closing. There are also a number of pre-payments that may appear on the closing statement, such as the nexct month's HOA dues, and probably some fees charged by the HOA in relation to the change in ownership. It is possible to give a general guide to these costs, but it is important to bear in mind that these are only approximations, and actual costs may vary.
Annual property taxes will range from under $1,000 for smaller condos up to $5,000 or more for the largest pool homes. As these are paid in arrears the taxes for the current year up to closing will often (except close to the end of the year) appear as a credit to the buyer from the seller. This isn't 'free' money, though. The buyer will have to pay the full year's taxes at the end of the purchase year.
Buyers title insurance is most commonly paid by the seller. Some bank sellers (for example, Fannie Mae) will decline to pay what would otherwise be seller's costs. The cost of title insurance is typically around $600 per $100,000 of the purchase price.
Documentary stamp duty on the deed is calculated on the basis of $7 per $1000 of the contract price. If financing is taken, there is additional duty and tax of $5.50 per $1000 of the mortgage amount. The stamp duty on the deed is usually the responsibility of the seller. The stamp duty on the mortgage loan is paid by the buyer.
Property Taxes: If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer will be occupying the property. Likewise, if the taxes have not yet been paid, the seller typically reimburses the buyer for the period in which the buyer occupied the property.
Homeowner's Insurance: This insurance covers replacement costs for damages caused by fire, wind or other disaster that might affect the value of the property. Typically, the insurance also covers personal liability and theft. This is the buyer's cost.