Buying or selling a home in Palm Beach County comes with more than a sale price. Closing costs can be a surprise if you do not know what they cover or who pays them. You want a clear, accurate picture before you sign so you can budget with confidence and negotiate smart.
This guide breaks down what closing costs include for buyers and sellers, what is typical in Florida and Palm Beach County, and how to keep your numbers under control. You will also find example scenarios, a practical checklist, and trusted sources for exact fees. Let’s dive in.
What closing costs include
Closing costs are the one-time fees, taxes, and prorations you pay at the completion of a real estate transaction. They are separate from your down payment and purchase price. Common categories include:
- Lender charges such as origination, underwriting, and discount points when financing.
- Title services and title insurance policies.
- State taxes on the deed or mortgage and county recording fees.
- Inspections, survey, and appraisal.
- Prepaid items and escrow set-up for taxes and insurance.
- Prorated property taxes and HOA assessments.
- Seller expenses such as commissions, owner’s title policy, and payoffs.
Exact totals depend on your loan program, negotiated terms, and local customs. In Florida many items are negotiable in the contract.
Who pays what in Palm Beach County
Florida custom often guides who pays specific items, though the contract controls. A few common practices:
- Sellers often pay for the owner’s title insurance premium, but this is negotiable.
- Buyers usually pay lender-related fees and the lender’s title policy when financing.
- State documentary stamp taxes and intangible taxes apply to deeds and new mortgages. Who pays can be negotiated, though sellers often pay the deed stamps.
- Recording fees for the deed and mortgage are paid at closing and are typically divided based on what is being recorded.
When in doubt, check your signed contract and ask the closing agent to confirm the split in writing.
Buyer closing costs: what to expect
If you are financing, plan for roughly 2 to 5 percent of the purchase price in closing costs, excluding your down payment. Here is what usually appears on your side in Palm Beach County:
Loan and lender fees
- Origination, processing, and underwriting fees, shown on your Loan Estimate and Closing Disclosure.
- Discount points if you choose to buy down your interest rate.
- Appraisal, credit report, flood certification, and tax service fees.
- Lender’s title insurance policy, required when you have a mortgage.
For a plain-English overview of your loan disclosures, review the Consumer Financial Protection Bureau’s guide to the Loan Estimate and Closing Disclosure.
Title and settlement charges
- Title search and examination.
- Settlement or closing fee charged by the title company or closing attorney.
- Owner’s title insurance is commonly paid by the seller in Florida, but verify your contract.
Government fees and state taxes
- County recording fees for the deed and mortgage. For current recording charges, visit the Palm Beach County Clerk & Comptroller.
- Florida documentary stamp and intangible taxes that apply to deeds and mortgages. For current rules and rates, consult the Florida Department of Revenue.
Inspections, survey, and prepaids
- Home inspection and termite or WDO inspection as needed.
- Boundary survey if required by your lender or requested by you.
- Prepaid homeowner’s insurance and initial escrow deposits for taxes and insurance if your lender requires an escrow account.
Property tax proration
Florida property taxes are paid in arrears and are prorated at closing. You will receive a credit or charge based on the closing date. For current assessments and exemptions, check the Palm Beach County Property Appraiser, and for billing schedules review the Palm Beach County Tax Collector.
HOA and condo items
Many Palm Beach County homes are in associations. Expect estoppel letters, transfer fees, and document fees. Estoppel fees can be several hundred dollars and timelines matter, so order early. Your ongoing dues after closing are separate from closing costs.
Seller closing costs: what to expect
Sellers cover several key items that are deducted from sale proceeds:
- Real estate commission negotiated in your listing agreement. A common total is about 5 to 6 percent of the sale price, split between brokerages.
- Owner’s title insurance premium is commonly a seller expense in Florida, though it can be negotiated.
- Documentary stamp tax on the deed, per Florida state rules and local custom.
- Payoff of existing mortgages, liens, or judgments, including any prepayment penalties.
- Prorated property taxes and HOA assessments tied to the closing date.
- Settlement or attorney fees for your side of the closing.
- Repairs or credits negotiated in the contract.
Many sellers find their total costs land around 6 to 10 percent of the sale price, with commission being the largest line item. Your exact number depends on your negotiated terms and any payoffs.
Government taxes and recording in Palm Beach County
Florida imposes state-level taxes on property transfers and new mortgages. You will generally see:
- Documentary stamp tax on the deed and, when applicable, on the mortgage.
- Intangible tax on new mortgages.
Rates and rules are set by the state. For current calculations and exemptions, consult the Florida Department of Revenue. Local recording fees for deeds, mortgages, and other instruments are posted by the Palm Beach County Clerk & Comptroller.
HOA and condo fees to expect
Association-managed properties often require:
- Estoppel certificate showing any outstanding assessments.
- Transfer or move-in fees.
- Payoff of any association liens.
Who pays which fee depends on your contract. Ask your agent or closing company to request estoppel and transfer requirements early to avoid delays.
How your totals are disclosed
If you are financing, federal rules require your lender to give you a Loan Estimate early in the process and a Closing Disclosure at least three business days before closing. These documents itemize your loan costs, prepaid items, and other closing charges. Review and compare line by line. The CFPB explains both forms clearly: Loan Estimate and Closing Disclosure.
If you are selling, you will receive a settlement statement summarizing commissions, payoffs, taxes, and your net proceeds. In Florida, the title or closing company prepares and balances the final statements for both sides.
Example closing cost scenarios
Below are simple, illustrative examples. Your actual figures will vary based on your contract, lender, and property specifics.
Buyer example at 300,000 purchase price
- Typical buyer closing costs at 2 to 5 percent: about 6,000 to 15,000.
- This range often covers lender fees, appraisal, inspections, lender’s title policy, recording fees, state taxes on the mortgage, and your initial escrow deposits.
Buyer example at 800,000 purchase price
- Typical buyer closing costs at 2 to 5 percent: about 16,000 to 40,000.
- Higher-priced homes can see larger title premiums and escrows. If you pay discount points to lower your rate, your costs increase.
Seller example at 300,000 sale price
- Commission at about 5 to 6 percent: 15,000 to 18,000.
- Add owner’s title policy, deed stamps per Florida rules, prorated taxes, and closing fees. Total seller costs may land around 6 to 10 percent depending on payoffs and negotiated items.
Seller example at 800,000 sale price
- Commission at about 5 to 6 percent: 40,000 to 48,000.
- Add owner’s title policy, deed stamps, prorations, and settlement fees. Large mortgage payoffs or agreed credits can change your net significantly.
How to lower your closing costs
Negotiate the split. In Florida, many items are negotiable. Address title policy, deed stamps, and transfer fees in your initial offer.
Shop your loan. Compare Loan Estimates from multiple lenders for interest rate, points, and fees.
Ask about credits. Seller-paid concessions can offset buyer closing costs. Time these with lender rules.
Confirm title charges. Some title service fees are fixed, while others vary. Ask the closing agent for a fee sheet early.
Order HOA estoppels early. Rush fees are avoidable when you plan ahead.
Palm Beach County closing checklist
Use this quick list to stay ahead of deadlines.
For both parties
- Confirm your government-issued ID and how you will sign, in person or remotely.
- Review your Closing Disclosure or settlement statement at least one day before closing.
- Verify wiring instructions directly with the title company using a known phone number. Do not rely on email alone.
- Confirm insurance binders and HOA transfer requirements with your lender and title company.
For buyers
- Secure a homeowner’s insurance binder effective on or before closing.
- Arrange certified funds or a wire for the amount due at closing and verify bank cut-off times.
- Review the title commitment and any required survey. Resolve exceptions before closing.
For sellers
- Order mortgage payoff statements well in advance and confirm any prepayment penalties.
- Disclose or clear outstanding assessments, code violations, or liens.
- Bring keys, remotes, gate fobs, and available manuals or warranties to closing.
Final word
Closing costs in Palm Beach County combine lender fees, title and recording expenses, state-level taxes, prorations, and any negotiated credits. The best approach is to confirm who pays each line item in your contract, verify county and state fees through trusted offices, and review your disclosures early so you can adjust before closing. If you want a precise estimate for your property and timing, partner with a local advisor who will itemize every detail and help you negotiate the smartest split for your goals.
If you are planning a purchase or sale, and you want an exact, property-specific closing cost breakdown, connect with Donald W. Lilly, P.A.. Schedule a Free Consultation and get concierge-level guidance tailored to your timeline.
FAQs
What do closing costs include in Palm Beach County?
- Closing costs include lender fees, title and settlement charges, state documentary stamp and intangible taxes, county recording fees, inspections and survey, prepaids and escrows, prorated taxes and HOA dues, and seller items such as commissions and payoffs.
Who typically pays for owner’s title insurance in Palm Beach County?
- Florida custom often has the seller pay the owner’s title insurance premium, but it is fully negotiable and should be specified in your contract.
What state taxes apply at closing in Florida?
- Expect documentary stamp taxes on deeds and mortgages and an intangible tax on new mortgages, with current rates and rules published by the Florida Department of Revenue.
How are property taxes handled at closing in Palm Beach County?
- Property taxes are prorated based on your closing date because Florida taxes are paid in arrears, using the most recent figures from the county Property Appraiser and Tax Collector.
How much should a buyer budget for closing costs?
- A practical planning range is about 2 to 5 percent of the purchase price for buyer closing costs, excluding the down payment and any optional discount points.
How much should a seller budget for closing costs?
- Many sellers see total costs around 6 to 10 percent of the sale price, driven mostly by commission, plus owner’s title policy, deed stamps, prorations, and any payoffs.
What HOA or condo fees affect closing in Palm Beach County?
- Associations often charge estoppel and transfer fees, and they provide payoff or compliance letters; fees vary and can be several hundred dollars, so request them early.
How can I reduce my closing costs without derailing the deal?
- Negotiate who pays key items in the offer, shop lenders for competitive fees and rates, request seller credits where allowed, and confirm title and HOA charges as early as possible.
How do I protect against wire fraud at closing?
- Always verify wiring instructions with the title company using a trusted phone number before sending funds, and never rely solely on emailed instructions.
