Closing Costs In Broward County Explained

Buying or selling in Hollywood, Fort Lauderdale, Pompano Beach, or Deerfield Beach and wondering what closing costs you should plan for? You are not alone. The line items can feel overwhelming, and some are unique to Broward’s condo and HOA landscape. In this guide, you will learn what typical buyer and seller closing costs include, who usually pays what in our market, how condo and HOA fees factor in, and where to get exact numbers for your situation. Let’s dive in.

Closing costs in Broward: what is included

Closing costs cover the services and taxes required to transfer property and, if you are financing, to set up your loan. Many items are customary, but your contract can change who pays them. Below is a clear look at common costs for buyers and sellers in Broward County.

Buyer costs: what you will likely see

• Lender fees: loan origination, processing, underwriting, application or administration. Your lender lists these on the Loan Estimate.
• Third-party loan charges: appraisal, credit report, flood certification, lender’s title search, and the lender’s title insurance policy.
• Title and closing: closing agent fee, title search, document prep, recording your mortgage, and optional owner’s title insurance.
• Prepaids and reserves: first year of homeowner’s insurance, prepaid mortgage interest, impound or escrow deposits for future taxes and insurance, and property tax prorations.
• HOA or condo items: estoppel letter, transfer or application fees, and prorated dues depending on the closing date.
• Inspections and reports: general home inspection, termite or WDO inspection, survey if required, and septic or well inspections if applicable. These are often paid before closing.

Seller costs: what you will likely see

• Real estate commission. This is usually the largest seller cost and is commonly negotiated as a percent of the sale price.
• Title and closing items you agree to pay. In many South Florida deals the seller pays the owner’s title policy premium, but this depends on local custom and your contract.
• Recording and payoff related: payoff of your mortgage or liens, release recording, prorated property taxes, and any unpaid HOA or condo assessments.
• Government taxes and stamps: documentary stamps on the deed are commonly a seller cost in Florida, subject to your contract.
• Credits and concessions: contributions toward buyer closing costs, interest rate buydowns, or repair credits if negotiated.

Who pays what in Broward

Local customs help set expectations, but your contract controls the final allocation. Here are typical patterns in Broward County and greater South Florida.

What buyers commonly pay

• Loan-related fees, appraisal, credit report, and lender-required title policy.
• Homeowner’s insurance for the first year and prepaid mortgage interest.
• Recording related to the new mortgage, and the intangible tax on the mortgage.
• Inspections and surveys.

What sellers commonly pay

• Real estate commissions, often the biggest single cost for sellers.
• Payoff of existing mortgages and liens, prorated property taxes, and HOA or condo assessments owed at closing.
• In many transactions, the owner’s title insurance premium. This is customary in parts of South Florida but is negotiable.
• Documentary stamp tax on the deed, as is common in Florida, subject to the contract.

Shared and negotiable items

• Closing or escrow agent fees and recording fees can be split or assigned based on local practice and your agreement.
• Condo and HOA transfer or estoppel fees sometimes fall to the seller, sometimes to the buyer. Buyers often cover application fees, while sellers often cover estoppel letters. Always confirm in writing.

Condo and HOA costs to plan for

Broward has a high number of condominiums and planned communities, so association fees can affect both your budget and your timeline.

• Estoppel letters: title companies need this to confirm dues, assessments, and violations. These fees are typically modest, often in the $100 to $400 range, but can be higher in some associations. Turnaround time varies and can delay closing if not ordered early.
• Transfer and application fees: many associations charge a flat transfer fee and a buyer application fee for approval.
• Capital contributions or reserves: some communities require a one-time contribution from buyer or seller. Check the bylaws.
• Special assessments: sellers usually pay what is owed up to closing. Billing methods vary, so a current estoppel is essential.
• Certificates and leasing restrictions: associations may charge to issue certificates tied to rental history or approvals.

Title insurance and state taxes in Florida

Florida regulates title insurance premiums, which helps make this cost predictable by price band. Buyers usually pay for the lender’s policy when financing, and an owner’s policy is optional but commonly purchased. In parts of South Florida, it is common for sellers to pay the owner’s policy premium as part of local custom, but the contract controls. To understand how premiums are set, review information from the Florida Office of Insurance Regulation and the Florida Department of Financial Services.

Florida also applies documentary stamp taxes on deeds and state taxes on mortgages. In many transactions, the seller pays doc stamps on the deed and the buyer pays intangible and mortgage taxes when recording a new loan. For current guidance, consult the Florida Department of Revenue.

Recording fees for deeds, mortgages, and releases are part of closing and are generally modest per-page amounts. For local processes, the Broward County Clerk of Courts provides recording information and links to records resources.

What it might cost: two quick examples

These scenarios are illustrative. Your costs will depend on your loan, property type, association, and contract terms. Always request a Loan Estimate from your lender and an itemized title quote for binding figures.

Example A: Hollywood condo at $300,000

• Buyer: loan charges such as appraisal and origination, lender’s title policy, first year of homeowner’s insurance, prepaid interest, and association estoppel or transfer fees. Typical buyer closing costs, excluding down payment, often land around 2 to 4 percent of the price in similar scenarios.
• Seller: commission is the largest line item, plus prorated taxes and HOA dues, any mortgage payoff, and possibly the owner’s title policy if customary or negotiated.

Example B: Single-family home at $600,000 in Greater Fort Lauderdale

• Buyer: lender fees, lender’s title policy, first year of homeowner’s insurance, property tax prorations, survey and inspections, and escrow deposits. A typical range of 2 to 5 percent of the price is common for buyer closing costs, depending on loan size and reserves.
• Seller: commission often represents the majority of seller-side costs, along with mortgage payoff amounts, prorated taxes, and any agreed credits.

How to get exact numbers

Estimates are helpful for planning, but only your lender and title company can provide binding figures for your address and contract. Here is how to dial in your numbers.

• Ask your lender for a Loan Estimate within days of going under contract. It breaks out loan fees, prepaids, and escrow requirements.
• Request an itemized title and closing estimate from your title or escrow company, including owner and lender title policies, recording, and settlement fees.
• For tax prorations and assessed values, check the Broward County Property Appraiser.
• For documentary stamp and mortgage tax guidance, use the Florida Department of Revenue.
• For title insurance premium rules, review the Florida Office of Insurance Regulation and the Florida Department of Financial Services.
• For insights on market customs and contracts, consult resources from Florida Realtors and speak with your agent.

Timeline tips for smooth closings

Broward closings commonly take 30 to 60 days. Association documents and lender underwriting can extend this, so build in buffer time.

• Early steps, once you are under contract:
  • Buyers: schedule inspections, order the Loan Estimate, and request condo documents or estoppel early.
  • Sellers: request your HOA or condo estoppel if not ordered by the title company, and obtain mortgage payoff statements.
• Two weeks before closing:
  • Buyers: secure your homeowner’s insurance binder, review the Closing Disclosure, and verify any wiring instructions by phone before sending funds.
  • Sellers: confirm payoff amounts and review your settlement statement.
• Day of closing:
  • The title or escrow company disburses funds, records the deed and mortgage, and issues title policies and releases.
• After closing:
  • Buyers: transfer utilities and HOA accounts, then check your recorded deed for accuracy.
  • Sellers: confirm your mortgage release was recorded and that you received final net proceeds.

Planning your closing costs is about clarity and timing. With the right estimates and a careful eye on association requirements, you can avoid surprises and keep your closing on track.

If you would like a local walkthrough of your expected costs and strategies to reduce them, connect with Gregory Pereira, PA to review your numbers and plan your next move.

FAQs

What are typical buyer closing costs in Broward County?

• Buyers often see closing costs, excluding the down payment, in the 2 to 5 percent range of the purchase price, including lender fees, title, prepaids, and any HOA or condo charges.

Who usually pays documentary stamp tax on the deed in Florida?

• It is common for the seller to pay doc stamps on the deed, while the buyer pays mortgage and intangible taxes on a new loan, but your contract controls the final allocation.

How do condo and HOA estoppel fees affect Broward closings?

• Estoppel letters confirm balances and assessments and are required by title; fees are typically modest but vary, and turnaround time can delay closing if ordered late.

Can a seller in Broward pay some of a buyer’s closing costs?

• Yes, seller concessions can cover items like loan costs or prepaids, subject to lender limits and the terms negotiated in your purchase contract.

Where can I find official guidance on Florida title premiums and taxes?

• For title insurance, check the Florida Office of Insurance Regulation and the Florida Department of Financial Services; for documentary stamp and mortgage taxes, use the Florida Department of Revenue.