Closing Costs In Palm Beach County Explained

Ever wonder why your planned down payment is not the full amount you need to bring to closing? You are not alone. Closing costs in Palm Beach County can feel confusing, especially if you are relocating to Florida or buying for the first time. In this guide, you will learn exactly what buyers and sellers typically pay, how Florida’s documentary stamp taxes work, and a simple way to estimate your cash to close. Let’s dive in.

What closing costs cover in Palm Beach County

Closing costs are the third-party fees and prepaids required to complete a real estate transaction. They are separate from your down payment. These costs include lender charges, title and settlement services, government taxes and recording fees, inspections, HOA items, and escrow prepaids for taxes and insurance.

As a rule of thumb in Palm Beach County, buyers often spend about 2% to 5% of the purchase price on closing costs, not counting the down payment. Sellers typically spend about 6% to 10% of the sale price, largely driven by real estate commissions. Your actual numbers will vary based on loan program, price point, negotiation, and who pays for owner’s title insurance.

Buyer closing costs: what to expect

Lender fees and points

If you finance your purchase, expect lender charges such as an origination or application fee, underwriting and processing fees, and a credit report. Some buyers choose to pay discount points to lower the interest rate. Appraisals are common and usually run a few hundred dollars.

Title and settlement services

Buyers typically pay for the lender’s title insurance policy when using a mortgage. The owner’s title policy is often paid by the seller by local custom, but this can be negotiated in your contract. You will also see a settlement or closing fee and small recording fees for the mortgage.

Government charges and taxes

Florida applies documentary stamp taxes to certain instruments. On the buyer side, these charges commonly apply to the mortgage or promissory note when you are borrowing. The borrower typically covers these mortgage-related doc stamps and any applicable intangible tax, though the contract can allocate costs differently.

Prepaids and escrow deposits

Plan for the first year of homeowner’s insurance and initial escrow deposits for taxes and insurance if required by your lender. You may also reimburse the seller for property taxes already paid for the period after you take ownership. This is part of the standard tax proration at closing.

Inspections and HOA items

Home and pest inspections are usually paid up front by the buyer. If the property is in an HOA or condo, the association may charge an estoppel or resale certificate fee. Contracts vary on who pays this fee; make sure you confirm timing and cost early.

Seller closing costs: what to expect

Real estate commissions

Commissions are typically the largest seller expense and commonly total around 5% to 6% of the sale price. Commission rates are negotiable and outlined in your listing agreement.

Title insurance, doc stamps on deed, and closing fees

In many Florida transactions, including Palm Beach County, sellers commonly pay for the owner’s title insurance policy by local custom. Sellers also often pay the documentary stamp tax on the deed that transfers ownership, though this is negotiable in the contract. Expect a settlement or closing fee on the seller side as well.

Mortgage payoffs and prorations

If you have a mortgage, it will be paid off from your sale proceeds, including any per diem interest to the payoff date. You may also credit the buyer for prorated property taxes and possibly HOA dues or utilities, depending on the contract.

Other seller items

Other potential costs include courier or recording fees, release fees for liens, and any agreed credits for repairs or buyer closing costs. Your net sheet will outline these items so you can plan for your bottom line.

Florida and Palm Beach specifics that matter

Documentary stamp taxes

Florida charges documentary stamp tax on deeds and on certain financing instruments. By custom, sellers often pay doc stamps on the deed and buyers often pay doc stamps on the mortgage, but the contract controls. To understand the tax itself and current statutory guidance, review the Florida Department of Revenue’s page on documentary stamp tax. You can confirm details directly with the Florida Department of Revenue.

Who pays for title insurance

Title insurance premiums in Florida are state regulated and paid once at closing. In much of South Florida, including many Palm Beach County transactions, sellers commonly pay for the owner’s title insurance policy and buyers pay for the lender’s policy. This is a local custom, not a law, so always confirm the allocation in your contract and with the closing agent.

Recording and clerk fees

Palm Beach County charges recording fees for deeds, mortgages, and related documents. These fees are typically modest but required. For current procedures and fee information, check with the Palm Beach County Clerk & Comptroller or your title company.

Property tax timing and prorations

Florida property taxes are paid in arrears. At closing, taxes are prorated so each party pays for their period of ownership during the year. If you plan to apply for homestead, review eligibility and timing with the Palm Beach County Property Appraiser.

HOA and condo estoppel letters

Most associations require an estoppel or resale certificate to confirm account status and fees. The fee amount and turnaround can affect your timeline, so request it early and confirm who pays in your contract.

A simple way to estimate your cash to close

Use this quick framework to get close before you receive official figures.

• Step 1: Identify your purchase price and down payment.
• Step 2: Estimate lender fees and third-party reports if financing.
  • Appraisal usually ranges about $350 to $700.
  • Add credit report, underwriting, and any origination or discount points.
• Step 3: Estimate title and settlement services.
  • Lender’s title policy and closing fee.
  • Confirm who pays the owner’s title policy.
• Step 4: Add prepaids and escrow deposits.
  • First-year homeowner’s insurance.
  • Initial escrow for property taxes and insurance.
  • HOA or condo transfer or estoppel fees if applicable.
• Step 5: Add government charges.
  • Buyer usually pays doc stamps on the mortgage and related recording fees.
  • Seller often pays doc stamps on the deed.
• Step 6: Add a 1% to 2% buffer for unexpected items or prorations.

For precise numbers, ask your lender for a Loan Estimate and your title company for a fee quote.

Example scenarios

• Example A: $300,000 purchase with financing

  • Buyer closing costs often range about $6,000 to $15,000, which is 2% to 5% of the price, plus prepaids and escrow deposits. This excludes the down payment.
  • Seller costs often include commission around 5% to 6% plus title, doc stamps on the deed by custom, and prorations. Total seller costs commonly land near 6% to 8% before any mortgage payoff.

• Example B: $600,000 purchase, all cash

  • Without a loan, buyer closing costs drop significantly, often limited to title and settlement services, transfer and recording fees, and prorations. It is still smart to budget about 1% to 2% of the price for closing-related needs and prepaids.

These are illustrations. Your lender’s Loan Estimate and your final Closing Disclosure will show exact figures.

What to verify before you write an offer

• Get a lender pre-approval and a Loan Estimate so you understand fees and cash to close.
• Confirm who pays the owner’s title policy and the documentary stamp tax on the deed.
• Ask if the property is in an HOA or condo and request estoppel fee amount and timeline.
• Schedule inspections early and budget for pest and general home inspections.
• Ask your title company for a preliminary quote for title, recording, and county fees in Palm Beach County.
• Keep a 1% to 2% contingency buffer in your budget.

Where to get accurate numbers

• For standardized buyer disclosures, see the CFPB’s overview of the Loan Estimate and Closing Disclosure on the Consumer Financial Protection Bureau.
• For documentary stamp tax rules and rate details, consult the Florida Department of Revenue.
• For local recording procedures and fees, refer to the Palm Beach County Clerk & Comptroller.
• For property tax timing, millage, and exemptions, check the Palm Beach County Property Appraiser.
• For title insurance practice and premium basics, see the Florida Land Title Association.

When you want numbers tailored to your address, your loan, and your timeline, we can help you run a clear estimate and negotiate who pays what. Reach out to the team at Power Duo Group for a custom closing cost or seller net review.

FAQs

How much are buyer closing costs in Palm Beach County?

• Buyers often budget about 2% to 5% of the purchase price for closing costs, not including the down payment, plus prepaids and escrow deposits.

Who typically pays for owner’s title insurance in Palm Beach County?

• By local custom, the seller commonly pays for the owner’s title policy and the buyer pays for the lender’s policy, but the contract can negotiate a different allocation.

Can closing costs be rolled into your mortgage?

• Some lender fees and seller-paid concessions can reduce your out-of-pocket costs, subject to loan program limits, but the down payment cannot be financed into a standard conventional mortgage.

What if you buy a home with cash in Palm Beach County?

• You avoid lender-related charges, but you still pay title and settlement fees, recording charges, prorations, and insurance; many cash buyers budget about 1% to 2% of the price.

How are Florida property taxes handled at closing?

• Taxes are paid in arrears and prorated at closing so each party covers their period of ownership, with escrow deposits set up if your lender requires them.

Where do you confirm documentary stamp tax rates in Florida?

• The Florida Department of Revenue is the authoritative source; review its guidance or ask your title company to apply the correct rate to your transaction.