Real estate transaction costs vary by state. Here in Florida, there are a number of closing costs for Buyers that may differ from those you’ve experienced in other states. For example, in Palm Beach County, if you are buying an existing home it is customary for the Seller to pay for title insurance. However, if you are buying a new construction home, you are responsible for the title insurance. Read on to learn about other unique Buyer’s costs that will appear on the closing statement for your Florida home.
A State Documentary Stamp Tax on Notes is the payment of a tax on all notes and promises to pay money. The tax rate is calculated at $3.50 per $1,000 of the mortgage and is payable on all new and assumed mortgage notes. If you are assuming the Seller’s loan, you owe this tax on the unpaid balance of the loan. At the closing, this tax is shown as a debit on your statement.
A State Intangible Tax on new mortgages only is figured at .002 times the amount of the mortgage. If you assume a mortgage which was previously recorded in a county record book, you need not pay the intangible tax, as it should have been paid by the original holder of the loan. This tax is reflected as a debit on your closing statement.
As your real estate agent, I will make sure that you are aware of every closing cost and review your HUD statement prior to closing for accuracy. If you have any questions about these Buyer’s taxes that are unique to Florida, please contact me at laura@FloridaOnYourMind.com or call me at 561.352.5214.
Click on the lifestyle photo representing your luxury lifestyle and important information on each Northern Palm Beach community is available. Or you can always choose the "Quick Search" feature...
Please note: I understand the importance of protecting your contact information. My team will never share or sell your private contact information with a third party. Click here to view our privacy policy.
