Ever wonder what you’ll actually pay at the closing table in Surfside? If you’re buying or selling on our barrier island, you face condo documents, association fees, insurance questions, and state taxes that can be confusing. You deserve a clear, local breakdown so you can budget with confidence and avoid last‑minute surprises. This guide explains who pays what, typical cost ranges, condo and HOA specifics, key timelines, and practical tips to keep your closing smooth. Let’s dive in.
What closing costs cover
Closing costs are the one‑time fees, taxes, insurance premiums, and prepaid items you pay to third parties to complete a real estate sale. They are separate from your down payment and regular monthly expenses. As a rule of thumb, buyers typically spend about 2% to 5% of the purchase price on closing costs, and sellers often spend about 6% to 10% of the sale price when broker commissions are included. Your actual total depends on your financing, negotiations, and the property type.
Who pays what in Surfside
Many items are customary, and many are negotiable. Your contract and title company will confirm the final split.
Typical buyer costs
- Lender fees such as origination, underwriting, or processing. These may be quoted as points or flat fees.
- Appraisal, usually higher for complex or high‑value properties.
- Credit report fee.
- Title search, closing, and escrow fees charged by the title company.
- Title insurance policies. Lenders require a lender’s policy; an owner’s policy is optional but common. Who pays for the owner’s policy varies by local practice and negotiation.
- Recording fees to file the deed and mortgage with Miami‑Dade County.
- Inspections, including general home, plus any specialized checks such as pest, roof, pool, or engineering.
- Survey, if required by the lender or contract. Condos often do not require one.
- Prepaid items and reserves, such as a portion of property taxes and insurance collected at closing.
- First‑year homeowner or condo (HO‑6) insurance. Flood insurance may also be required if the property is in a FEMA flood zone and you have a federally backed mortgage.
- HOA or condo estoppel and status letter fees to confirm dues and assessments.
- Wire and cashier’s check fees for settlement funds.
Typical seller costs
- Real estate broker commission. This is often the largest line item and is commonly around 5% to 6% of the sale price in many markets, but every listing is negotiated.
- Existing mortgage payoff and related payoff service fees.
- Documentary stamp tax on the deed is commonly paid by the seller in many Florida transactions, but this is negotiable and should be confirmed with the title company.
- Owner’s title insurance policy for the buyer in some Florida markets. In others, the buyer pays. Confirm local custom for your Surfside deal.
- Required payoffs for municipal liens, code violations, condo special assessments, or association balances.
- Seller credits or concessions negotiated during inspections or financing.
Condo and HOA costs to expect
Surfside is primarily a condominium market, so HOA and condo line items are common and time‑sensitive:
- Estoppel certificate. Associations charge a fee to verify dues status and any outstanding assessments. This is often a buyer expense and is typically several hundred dollars. Estoppels often expire after a short window, so timing matters.
- Condo documents and resale certificate. Florida law requires delivery of association documents. Preparation fees apply and are frequently paid by the seller unless negotiated otherwise.
- Special assessments. Review board minutes and reserve studies early. Any unpaid special assessments may need to be settled at closing.
- Master insurance and deductibles. Oceanfront buildings can have substantial hurricane deductibles. Understand what the master policy covers and what your HO‑6 must cover.
Taxes, recording, title, and insurance
Florida applies documentary stamp taxes and an intangible tax on mortgages. Miami‑Dade also has specific recording fees. These are statutory and calculated at closing. Who pays the deed tax, note tax, and other items can depend on negotiation and local custom. Your title company will confirm the current rates and allocate them on the settlement statement.
Title insurance premiums in Florida follow state‑regulated schedules. You will typically see two policies: a lender’s policy and, if purchased, an owner’s policy. The buyer’s lender will require the lender’s policy for financed purchases. Whether the buyer or seller pays for the owner’s policy varies by area and is negotiable.
Insurance costs can be higher in South Florida due to wind and hurricane exposure. If the property is in a FEMA flood zone and the purchase uses a federally backed loan, flood insurance will be required. For condos, confirm what the building’s master policy covers versus what you must insure with your HO‑6 policy.
Budget ranges you can use
While every file is different, these quick ranges help you plan:
- Buyers: plan for about 2% to 5% of the purchase price in closing costs, separate from your down payment. Condos may add HOA estoppels and document fees, plus the first year of HO‑6 insurance and possible flood insurance.
- Sellers: plan for about 6% to 10% of the sale price when you include broker commissions. Add any mortgage payoffs, documentary stamp tax on the deed if applicable, and any agreed concessions or special assessment payoffs.
If you want a personalized estimate tailored to your building and financing, ask your lender for a Loan Estimate and request a preliminary title fee quote early.
Timeline and disclosures
- Loan Estimate. If you are financing, your lender will send a Loan Estimate within three business days of your loan application. It outlines expected closing costs.
- Closing Disclosure. You must receive a final Closing Disclosure at least three business days before you sign your loan, giving you time to review figures.
- Settlement statement. The title company prepares a final statement showing all prorations, payoffs, taxes, and fees for both sides. Numbers can shift slightly right up to funding, so review carefully and confirm the amount and method for your final wire.
- Seller payoffs. If you are selling, request mortgage payoff statements early. Payoffs are date‑sensitive and need time to process.
Property tax proration basics
Florida property taxes are assessed yearly and typically paid in arrears. At closing, taxes are prorated based on the closing date, so each party pays a fair share for the year. If you have or are transferring a homestead exemption, assessed value changes can affect your tax liability. Your title company will reflect the proration on the settlement statement and can explain the timing.
Prevent surprises and delays
A few proactive steps can protect your timeline and your wallet:
- Get early quotes. Ask for lender, title, HOA estoppel, and insurance quotes right after you go under contract.
- Order inspections quickly. Use the inspection period fully and resolve repair or credit requests early.
- Verify flood and insurance needs. For coastal and low‑lying areas, get flood zone and policy quotes immediately.
- Review HOA documents and minutes. Look for reserve studies and any pending or recent special assessments.
- Ask for a preliminary settlement statement. Review it several days before closing so you can verify payoffs, prorations, and wire amounts.
- Protect your funds. Wire fraud is a known risk. Only use wiring instructions provided directly by the title company and confirm them by calling a verified phone number.
Cash to bring to closing
If you are a buyer, plan to wire your down payment and closing costs to the title company, minus any lender credits or seller concessions. The title company will provide the exact figure and acceptable payment methods. Bring current identification and proof of insurance as required by your lender. If you are remote, ask about secure remote notarization or mobile notary options.
Special situations: investors and foreign sellers
Short‑term rental properties or buildings with a high share of investor units can trigger extra underwriting review or HOA approval steps. Non‑resident foreign sellers may face additional withholding requirements at closing. For these situations, involve your CPA and a real‑estate attorney early so requirements do not delay funding.
How Rafael helps you plan
Surfside closings involve condos, associations, coastal insurance, and state taxes that can shift your bottom line. With senior‑level representation and hands‑on coordination, you get clear estimates early, reliable vendor introductions, and on‑time execution. If you would like a tailored closing‑cost worksheet and a net proceeds or cash‑to‑close review for your address or building, connect with Rafael Szydlowski. Request a Free Home Valuation and a custom buyer or seller plan.
FAQs
What are closing costs in Surfside and how much are they?
- Buyers often see about 2% to 5% of the purchase price in closing costs, while sellers commonly see about 6% to 10% including commissions, with specifics set by your deal.
Who typically pays owner’s title insurance in Surfside?
- It is negotiable; in some Florida markets sellers pay the owner’s policy and in others buyers do, so confirm local custom with your title company.
How do Florida documentary stamp and intangible taxes affect me?
- Florida charges documentary stamp taxes and an intangible tax on mortgages; allocations vary by custom and negotiation, so your title company will confirm who pays what.
What are HOA estoppel and condo document fees and who pays them?
- Associations charge for estoppels to verify dues and assessments (often a buyer expense), while condo document preparation fees are frequently paid by the seller unless negotiated otherwise.
Do I need flood insurance to buy in Surfside?
- If your property is in a FEMA flood zone and you have a federally backed mortgage, flood insurance will be required and the first year’s premium may be collected at closing.
How are Florida property taxes prorated at closing?
- Taxes are typically paid in arrears and prorated based on the closing date; homestead status and assessed value changes can affect the final amount.
How can I avoid wire fraud when sending closing funds?
- Only use wiring instructions from the title company and confirm them by calling a known phone number; never rely solely on email instructions.
Can a seller pay a buyer’s closing costs in Surfside?
- Yes, seller concessions are negotiable and can cover some buyer costs or rate buydowns, but they affect the seller’s net and must fit loan guidelines.
When should I order inspections and insurance quotes?
- Immediately after going under contract; early inspections and insurance quotes prevent delays and help you negotiate repairs or credits in time.
Are there extra costs for non‑resident foreign sellers?
- There may be additional withholding or reporting requirements; involve a CPA and real‑estate attorney early to plan for timing and amounts.
