If you are buying or selling in Boynton Beach, closing costs can feel like alphabet soup. You want to know what you will owe, who pays which line items, and how to plan your cash. This simple guide breaks down typical buyer and seller costs in Palm Beach County, what is customary locally, and easy ways to avoid last-minute surprises. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaids needed to transfer a property, separate from your down payment. They include lender charges, title and settlement services, state and county taxes, recording fees, and escrows for insurance and property taxes. In Florida, buyers typically spend about 2% to 5% of the purchase price on closing costs. Sellers often spend 6% to 10% of the sale price, with the commission being the largest line.
Who pays what in Palm Beach County
Local custom in South Florida often has the seller paying for the owner’s title insurance policy and the state documentary stamp tax on the deed. Buyers usually pay lender-related charges and the mortgage taxes tied to a new loan. These practices are common in Palm Beach County, but they are negotiable and should be spelled out in your contract.
In typical MLS sales, the seller pays the real estate commission according to the listing agreement. The total commission is commonly 5% to 6%, though it is negotiable and based on market conditions and the listing agreement.
HOA and condominium fees, like estoppel certificates or transfer charges, vary by community. Your contract should specify who pays these items.
Buyer closing costs: key items
Here are common buyer-side costs and typical ranges to help you budget:
- Lender fees such as origination, underwriting, processing: often $1,000 to $4,000, or about 0.5% to 1% of price depending on program and credits.
- Appraisal: typically $400 to $800 for a single-family home, more for complex properties.
- Credit report: about $25 to $50.
- Title search, closing, and settlement fee: roughly $400 to $1,000.
- Lender’s title insurance policy: required with financing; ranges from several hundred dollars to more than $1,500 based on loan amount.
- Recording fees plus documentary stamp and intangible taxes for the mortgage: amounts depend on your loan and are calculated by the title agent.
- Prepaids and escrows for property taxes, homeowner’s insurance, and interest: commonly 1 to 3 months of insurance plus prorated taxes, depending on closing date.
- HOA or condo fees such as estoppel or transfer charges: often $100 to more than $500, depending on the association.
Cash buyers do not have lender fees, lender’s title insurance, or mortgage taxes, but will still see title, recording, and prepaid items.
Seller closing costs: key items
Seller costs are driven by the commission and Florida transfer items:
- Real estate commission: commonly 5% to 6% total, per listing agreement.
- Documentary stamp tax on the deed: customary for sellers locally, based on the sale price and calculated by the title agent.
- Owner’s title insurance policy: often paid by the seller in South Florida, though negotiable.
- Loan payoff and related processing or courier fees, if you have a mortgage.
- Prorated property taxes up to the day of closing.
- Settlement and recording fees, deed preparation, and miscellaneous title charges.
- HOA or condo estoppel and transfer fees, if applicable.
- Any seller-agreed repairs or credits specified in the contract.
When you combine commission with transfer taxes and routine settlement fees, total seller costs often land in the 6% to 10% range.
Florida taxes and fees you will see
Florida charges state-level taxes that appear on your closing statement:
- Documentary stamp tax on the deed is commonly a seller cost in Palm Beach County and is calculated on the sale price.
- For financed purchases, buyers typically pay documentary stamp tax on the promissory note and the intangible tax on the recorded mortgage. These are based on the loan amount.
- Recording fees are charged by the county for recording the deed and, if applicable, the mortgage. The party recording the document typically pays that fee.
Your title or settlement agent will calculate exact tax and recording amounts for your property and contract.
Prepaids, escrows, and prorations
Buyers often fund escrow accounts for property taxes and homeowner’s insurance at closing. The amount depends on the closing date and the tax cycle. Mortgage interest from funding to your first payment is also collected.
Property taxes in Florida are prorated between buyer and seller at closing. If you close later in the year, the proration amounts will be different than an early-year closing. HOA dues and special assessments may also be prorated as agreed in the contract.
How much to budget: quick scenarios
The numbers below are examples to help you plan. Actual figures vary by lender, title company, price point, and timing.
Example A: Single-family home at $350,000
- Buyer closing costs estimate at 2.5%: about $8,750
- Seller closing costs estimate at 7%: about $24,500
- Commission at 6%: $21,000
- Other seller fees and taxes: about $3,500
Example B: Boynton Beach condo at $450,000
- Buyer closing costs estimate at 3%: about $13,500
- Seller closing costs estimate at 7%: about $31,500
Example C: Higher-priced home at $800,000
- Buyer closing costs estimate at 2% to 3%: about $16,000 to $24,000
- Seller closing costs estimate at 6% to 7%: about $48,000 to $56,000
These are estimates to guide budgeting. Always request written quotes from your lender and title company for precise numbers.
Boynton Beach condo watchouts
Condominium transactions often include extra administrative items. Many associations charge an estoppel fee, and some have buyer application or transfer fees. These can add several hundred dollars and a few days to the timeline.
Your contract should clearly state who pays for the estoppel and any transfer fees. Request association documents and fee schedules early to avoid delays.
Smart ways to avoid surprises
- Get your Loan Estimate early and compare lender fees before you lock.
- Review your Closing Disclosure at least three business days before closing. Verify every line with your lender and title agent.
- Ask the title company for a preliminary quote that shows who pays which items, including title insurance, deed taxes, and recording fees.
- Put local customs in writing. Clarify who pays the owner’s title policy, estoppel fees, and documentary stamp tax on the deed in your contract.
- Shop where you can. Lender fees and title settlement fees can vary by provider.
- Watch your timing. Closing date affects tax and HOA prorations and the amount of escrows.
- Protect against wire fraud. Confirm wiring instructions using a verified phone number before sending funds.
- Confirm payment method. Most title companies require a wire or cashier’s check for your final cash to close.
What to expect on closing day
You will sign final documents, the lender will wire loan funds if you are financing, and the title company will record the deed and any mortgage. Bring a government-issued ID and confirm closing funds are delivered by the required method. Once recording is complete and funds are disbursed, you will receive the keys according to the terms of your contract.
Ready to plan your closing?
You deserve a clear number and a smooth path from offer to keys. If you want help confirming exact figures, aligning your contract with local custom, and coordinating title and HOA steps, connect with Denise Starrantino. Schedule a Consultation and move forward with confidence.
FAQs
What are typical buyer closing costs in Boynton Beach?
- Buyers commonly budget about 2% to 5% of the purchase price for closing costs, excluding any down payment, with the exact amount driven by the loan, timing, and title fees.
Who usually pays owner’s title insurance in Palm Beach County?
- It is common in South Florida for the seller to pay the owner’s title insurance policy, but this is negotiable and should be stated in the contract.
How are Florida documentary stamp and mortgage taxes handled?
- The seller typically pays documentary stamp tax on the deed, while buyers with financing usually pay the mortgage-related documentary stamp and intangible taxes, which are based on the loan amount.
How are Florida property taxes handled at closing?
- Property taxes are prorated between buyer and seller based on the closing date, and buyers often fund an escrow for future tax payments as required by the lender.
What extra fees should Boynton Beach condo buyers expect?
- Condo transactions often include association estoppel and transfer fees, plus possible application charges, which vary by community and should be confirmed early.
Do cash buyers still have closing costs in Palm Beach County?
- Yes, cash buyers skip lender fees and mortgage taxes but still pay items like title and settlement fees, recording fees, and prorated taxes or association amounts.
