Surprised by how many fees show up at closing in Miami? You are not alone. Between state taxes, title charges, lender fees, and condo association items, the final number can feel confusing. This guide breaks down what buyers and sellers in Downtown Miami typically pay, what is negotiable, and how to plan your cash needs with confidence. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and adjustments you pay when a property transfers and records. They include taxes, title and closing fees, lender charges, prepaid items like taxes and insurance, and prorations for things like property taxes and HOA dues.
In Miami-Dade, typical ranges are a helpful starting point. Buyers who finance usually pay about 2% to 5% of the purchase price in closing costs, not including the down payment. Sellers often pay about 7% to 10% of the sale price, with commission as the largest line item. Condo sales in Downtown Miami can include added association fees that shift totals, so always confirm the building’s requirements.
Buyer costs in Downtown Miami
If you are buying a Downtown Miami condo or home, you will likely see these items on your Closing Disclosure:
- Lender fees if financing. Origination can be 0.5% to 1% of the loan, with underwriting and processing as flat fees. These vary by lender.
- Appraisal, credit, and verification fees. Condo appraisals often run $400 to $900.
- Lender’s title insurance. Protects the lender and is based on the loan amount.
- Owner’s title insurance. In Florida it is customary for the seller to pay the owner’s policy, but it is negotiable. Ask your agent to confirm who pays in your contract.
- State mortgage taxes. Florida charges a documentary stamp tax of $0.35 per $100 of the mortgage amount and an intangible tax of 0.2% of the loan amount. You can confirm these rates with the Florida Department of Revenue’s documentary stamp guidance and intangible tax overview.
- Recording fees. The Miami-Dade Clerk sets deed and mortgage recording fees. Check the Miami-Dade Clerk of Courts fees page for current amounts.
- Prepaid items and escrows. Lenders often collect 1 to 3 months of property taxes and insurance, plus daily interest from closing to month end.
- Property tax proration. Taxes are assessed in arrears in Miami-Dade. Based on your closing date, you will either reimburse the seller for prepaid taxes or receive a credit if taxes are owed. See the Miami-Dade Property Appraiser for local tax timelines and details.
- HOA and condo association fees. Expect an estoppel certificate, transfer or application fees, and possible move-in deposits. Estoppel fees commonly range from $150 to $500 and can be higher in some buildings.
Downtown condo notes for buyers
- Association transfer items. Many Downtown towers charge transfer fees or capital contributions at closing. These can be flat fees or a percent. Always verify the building’s resale package early.
- Move-in logistics. You may see elevator deposits, move-in fees, or mandatory orientation. These are set by the association.
- Flood and wind coverage. Most high-rises carry a master insurance policy. Your lender will confirm if any additional coverage is required based on FEMA maps and building policy.
Seller costs in Downtown Miami
If you are selling, your largest costs are usually commission and the state tax on the deed. Here is what to expect:
- Real estate commission. Often 5% to 6% of the sale price in South Florida, split between listing and buyer agents. Commission is negotiable.
- State tax on deed. Florida charges documentary stamps on deeds at $0.70 per $100 of the sale price, which equals 0.7% of the price. It is customary for the seller to pay this tax in Florida. You can confirm the rate with the Florida Department of Revenue’s documentary stamp guidance.
- Owner’s title insurance premium. In many Miami-Dade deals the seller pays for the buyer’s owner’s title policy. Check your listing agreement and contract.
- Mortgage payoff and release. Your remaining loan balance, any interest due, and small recording fees for the release get paid from your proceeds.
- HOA estoppel and transfer items. Sellers often order and pay for the estoppel certificate that shows dues and assessments. Some associations also charge seller transfer or admin fees.
- Prorations and utilities. You will credit the buyer for any prepaid taxes or HOA dues beyond the closing date.
Downtown condo notes for sellers
- Estoppels and rush fees. Associations have set timelines to deliver estoppels. If you need it fast, a rush fee often applies. Florida’s Condominium Act outlines requirements for associations and estoppels. Review Chapter 718 in the Florida Condominium Act for context.
- Foreign seller withholding. If you are not a U.S. resident for tax purposes, FIRPTA may require withholding 10% to 15% of the gross sale price at closing. Title companies handle the mechanics, but you should review the IRS guidance on FIRPTA withholding with your tax advisor.
Who typically pays what
Here is the common breakdown in Miami-Dade. Your contract controls the final answer.
- Seller usually pays: owner’s title insurance premium, documentary stamp tax on the deed, real estate commission, HOA estoppel, and transfer documents required on the seller side.
- Buyer usually pays: lender fees, appraisal and credit reports, lender’s title insurance policy, documentary stamps and intangible tax on the mortgage, mortgage recording fees, prepaids and escrow reserves, and most move-in or application fees.
- Negotiable items: who pays the owner’s title policy, seller credits to the buyer for closing costs, and sometimes which side covers specific recording or association transfer fees.
Real examples to estimate your cash
Use these illustrations for a quick sense of typical totals in Downtown Miami. Your lender quote, closing date, and building fees will change the final figures.
Example A: Downtown condo purchase at $450,000 with 20% down
- Loan amount: $360,000
- Lender and appraisal fees: about $1,700
- Mortgage doc stamp tax: $1,260 at 0.35% of the loan amount
- Intangible tax: $720 at 0.2% of the loan amount
- Lender’s title policy and recording: about $1,300
- Prepaid interest and escrows: about $2,000
- HOA estoppel and move-in items: $200 to $800
- Estimated buyer closing costs, excluding down payment: about $7,000 to $9,000 which is roughly 1.6% to 2.0% of price
Example B: Downtown condo purchase at $1,200,000 with 20% down
- Loan amount: $960,000
- Mortgage doc stamp tax: $3,360
- Intangible tax: $1,920
- Lender, title, appraisal, and recording: $4,000 to $6,000
- Prepaids and escrows: $6,000 to $12,000
- HOA estoppel and transfer: $250 to $1,000
- Estimated buyer closing costs, excluding down payment: about $15,000 to $25,000 which is roughly 1.25% to 2.1%
Example C: Downtown condo sale at $450,000
- Commission at 6%: $27,000
- Deed doc stamp tax at 0.7%: $3,150
- Owner’s title premium and closing fee: about $1,800
- HOA estoppel and admin: about $300
- Total seller closing costs before mortgage payoff: about $32,000 to $33,000 which is about 7.1% of the sale price
Example D: Downtown condo sale at $1,500,000
- Commission at 5.5%: $82,500
- Deed doc stamp tax at 0.7%: $10,500
- Title and estoppels: $3,000 to $6,000
- Total seller closing costs before payoff: about $96,000 to $102,000 which is about 6.4% to 6.8%
Condo association costs to watch
Downtown Miami buildings can have strong association rules that affect your bottom line. Ask for the full resale package early and read the fine print.
- Estoppel certificate. Shows monthly dues, reserves, assessments, and violations. It carries a fee and can take time to produce.
- Transfer or capital contribution. Some buildings collect a contribution to reserves or a set transfer fee at closing.
- Move-in and move-out. You may see elevator deposits, scheduling rules, and cleaning fees.
- Special assessments. Review the estoppel and meeting minutes for any pending or approved assessments that may be due at or after closing.
What you can negotiate
You cannot avoid statutory taxes, but you can often shift who pays some fees or offset costs with credits. Talk through these options before you sign the contract.
- Commission on the listing side.
- Who pays the owner’s title insurance premium.
- A seller credit to the buyer to cover part of lender fees or prepaids.
- Which party pays specific recording or courier fees.
- Certain association transfer fees that allow payer flexibility per the condo docs.
Quick checklists
Buyer checklist
- Ask your lender for an early Loan Estimate and review the Closing Disclosure before you sign.
- Confirm in writing who pays the owner’s title policy and association transfer fees.
- Budget for state mortgage taxes, lender fees, and prepaids. Verify rates with the Florida Department of Revenue.
- Request the HOA estoppel and resale documents as soon as you go under contract.
- Check the Miami-Dade Clerk recording fees for current recording costs.
Seller checklist
- Order your mortgage payoff statement early and ask about any prepayment penalties.
- Budget for commission, the 0.7% deed doc stamp tax, and the owner’s title policy if customary in your deal.
- Order the HOA estoppel early to avoid rush fees and delays.
- If you are a foreign seller, review IRS FIRPTA rules with your CPA well before closing.
Local taxes and recording at a glance
Miami-Dade does not add a separate county transfer tax beyond Florida’s documentary stamps. Recording fees are set by the Clerk and change from time to time. Always confirm the current fee schedule with the Miami-Dade Clerk of Courts and check property tax timing with the Miami-Dade Property Appraiser.
Ready to get a clear estimate tailored to your move and your building? Let’s talk through your numbers, timing, and strategy so you can close with confidence. Connect with Rebecca Sundel to request your custom estimate or to get started on your Downtown Miami purchase or sale.
FAQs
What are typical buyer closing costs in Downtown Miami?
- Buyers who finance usually pay about 2% to 5% of the purchase price, which covers lender fees, mortgage taxes, title, recording, prepaids, and association items.
Who pays Florida documentary stamp tax on the deed?
- It is customary in Florida for the seller to pay the deed documentary stamp tax at 0.7% of the sale price, though parties can negotiate in the contract.
How much are condo HOA estoppel and transfer fees in Miami?
- Estoppel fees commonly range from $150 to $500 and some buildings add transfer or capital contribution fees, so confirm the amounts with the association early.
What mortgage taxes do Florida buyers pay at closing?
- Buyers who finance typically pay the mortgage documentary stamp tax at $0.35 per $100 of the loan amount and the intangible tax at 0.2% of the loan amount.
How are Miami-Dade property taxes prorated at closing?
- Taxes are assessed in arrears and prorated to the closing date, which means either the buyer reimburses the seller for prepaid taxes or the seller credits the buyer if taxes are due.
Do Downtown Miami condo buyers need flood insurance?
- Many high-rises carry a master policy that includes flood or wind coverage, but your lender will confirm if any additional coverage is required for your unit.
Can a seller pay a buyer’s closing costs in Miami?
- Yes, a seller can credit a buyer toward closing costs and prepaids, which is negotiated in the purchase contract and subject to lender limits.
Are surveys required for Downtown Miami condos?
- Surveys are rarely required for high-rise condos, though they are common in single-family purchases and typically cost a few hundred dollars.
