Are closing costs in Miami Beach catching you off guard? You are not alone. Between state taxes, title insurance, condo fees, and lender charges, it is easy to underestimate what you will owe at the closing table. In this guide, you will learn who typically pays what in Miami-Dade, how the fees work for condos and waterfront homes, and how to estimate your total whether you pay cash or finance. Let’s dive in.
What closing costs include
Closing costs fall into two buckets in Miami-Dade:
- Statutory and recording charges tied to the deed and any mortgage.
- Transaction and service charges like title insurance, lender fees, inspections, HOA items, escrow fees, and prorations.
A few items drive most of the total: real estate commission for sellers, Florida documentary stamp taxes on the deed, mortgage-related taxes if you finance, title insurance, and condo or HOA estoppel and transfer fees.
Who typically pays in Miami Beach
Customs can vary by contract, but here is what you will often see locally:
- Seller often pays the documentary stamp tax on the deed and, in many Miami-Dade transactions, the owner’s title insurance policy.
- Buyer typically pays lender costs, appraisal, inspections, recording of the mortgage, and the mortgage documentary stamp and intangible taxes if financing.
- Condo and HOA estoppels and transfer fees vary by association and can be paid by either party. Many sellers handle estoppels to keep timelines on track.
- Property taxes and HOA dues are prorated between buyer and seller as of the closing date.
Everything is negotiable, so always check what your contract specifies.
Line-by-line cost breakdown
Statutory taxes and recording
Documentary stamp tax on the deed
- Rate: 0.007 times the purchase price. Example: $0.70 per $100.
- Who pays: Often the seller in Miami-Dade, subject to contract.
Documentary stamp tax on the promissory note (if financing)
- Rate: 0.0035 times the mortgage amount.
- Who pays: Typically the buyer.
Intangible tax on the mortgage (if financing)
- Rate: 0.002 times the mortgage amount.
- Who pays: Typically the buyer.
Recording fees
- Deed and mortgage recording fees vary by page and document count.
- Who pays: Deed recording is per contract. Mortgage recording is usually a buyer cost.
Title and title insurance
Title search, exam, and closing or escrow service
- Who pays: Negotiated. In many Miami-Dade deals the seller provides and pays for the owner’s title policy; buyers pay the lender’s policy when financing.
Title insurance premium
- One-time premium regulated in Florida and based on purchase price and policy type. Expect a few thousand dollars for higher priced Miami Beach condos. Get a written quote early.
Lender-related costs for financed deals
Origination, processing, and underwriting fees
- Often a flat fee or a percentage of the loan amount. Paid by the buyer.
Appraisal
- Buyer-paid. Costs can be higher for condos and waterfront properties.
Other lender items
- Credit report, flood certification, tax service, and courier fees.
Closing Disclosure
- Your lender must deliver a Closing Disclosure at least 3 business days before consummation. Review all fees and prepaids carefully.
Inspections and insurance
Home and condo inspections
- Typically buyer-paid. Waterfront homes may also need seawall, piling, or dock inspections.
Flood insurance
- Required by lenders if the property is in a Special Flood Hazard Area. Premiums are often higher for waterfront properties. Cash buyers are not required to buy it, but it is recommended.
Condo and HOA costs
Estoppel certificate
- Shows dues status, delinquencies, and rules. Commonly ranges around $150 to $500 or more depending on the association. Often handled by the seller, but this varies.
Transfer and administrative fees
- Many associations charge transfer, application, board review, and document fees. Amounts vary by building.
Timing
- Estoppels are time sensitive. Delays can postpone closing.
Prorations and prepaids
Property taxes
- Paid in arrears in Florida. Prorations are usually based on prior year taxes.
HOA dues and assessments
- Prorated as of closing. Special assessments are negotiable and should be disclosed.
Utilities and rent (if applicable)
- Prorated per contract.
Common seller costs
Real estate commission
- Frequently the largest seller expense. Many Florida deals see a total commission around 5 to 6 percent of the sale price.
Documentary stamp tax on the deed
- Often a seller expense in Miami-Dade, per contract.
Owner’s title policy
- Seller often pays in local custom, but confirm in writing.
Mortgage payoff and release fees, HOA delinquencies, and any agreed credits
- Handled at closing based on payoff statements and contract terms.
Additional seller considerations
- FIRPTA withholding
- If the seller is a foreign person, federal law may require buyer withholding from the proceeds. Buyers and sellers should consult tax counsel when FIRPTA may apply.
Example estimates you can use
These illustrations apply the Florida formulas. Always confirm your exact numbers with your title company and lender.
Example A: Miami Beach condo, financed
- Sale price: $800,000
- Down payment: 20 percent ($160,000) so loan = $640,000
- Statutory taxes:
- Deed doc stamp: 0.007 × $800,000 = $5,600
- Note doc stamp: 0.0035 × $640,000 = $2,240
- Intangible tax: 0.002 × $640,000 = $1,280
- Subtotal statutory taxes: $9,120
- Other buyer costs to expect:
- Lender fees or points: often 0.5 to 1.0 percent of the loan amount
- Appraisal: varies and can be higher for condos or waterfront
- Lender’s title policy: buyer cost when financing
- Recording and closing fees: several hundred dollars
- Inspections: common range from a few hundred dollars and up
- Condo estoppel: often a few hundred dollars, amounts vary by building
- Takeaway: Your cash to close will include down payment plus several thousand to low five figures in costs. The statutory taxes alone here are $9,120.
Example B: Miami Beach condo, all cash
- Sale price: $1,200,000
- Statutory taxes:
- Deed doc stamp: 0.007 × $1,200,000 = $8,400
- What you avoid by paying cash:
- No mortgage note doc stamp, no intangible mortgage tax, and no lender fees.
- Other common costs:
- Inspections, recording and closing fees, and your share of prorations. Owner’s title policy is often a seller cost locally, but confirm in the contract.
Seller snapshot on an $800,000 sale
- Commission at 6 percent: $48,000
- Deed doc stamp at 0.007: $5,600
- Potential owner’s title premium: often a seller cost in Miami-Dade
- Plus payoff of any mortgages, prorations, and association items per contract
Waterfront and condo add-ons to expect
Waterfront properties often need specialist inspections for seawalls, pilings, and docks, which can add several hundred to several thousand dollars depending on scope. Appraisals for complex condo or waterfront assets may cost more. Flood and wind insurance premiums for waterfront homes or condos tend to be higher than for inland properties. Associations may also levy special assessments for coastal resiliency, seawall work, or capital projects, so review minutes and recent assessment history early.
How to estimate your total with confidence
Use this quick plan to avoid surprises:
Early in the process
- Request a title commitment and written title insurance quote from a Miami-Dade title company.
- Ask the association for estoppel fees, turnaround times, recent meeting minutes, and any approved special assessments.
- Specify in the offer who pays the owner’s title policy and the deed doc stamps.
If you are financing
- Compare lenders using a Loan Estimate and line-item fees.
- Order the appraisal promptly and confirm flood zone status early.
- Expect a Closing Disclosure at least 3 business days before consummation and review it carefully.
Just before closing
- Verify tax and HOA prorations, and confirm seller payoff figures and any release fees.
- Buyers should confirm deed language and that closing instructions match the title commitment.
Watch outs that can delay or add cost
- Slow condo estoppel responses, undisclosed assessments or liens, FIRPTA withholding steps for foreign sellers, and flood zone or elevation surprises.
Negotiation and local custom tips
- Clarify title insurance early. In many Miami-Dade deals the seller provides the owner’s policy, but you should write it into the contract.
- Confirm who pays the deed doc stamps. Local custom leans seller, yet it is negotiable.
- For condos, push for estoppel ordering early to protect your timeline.
- Cash buyers save by avoiding mortgage-related taxes and lender fees. If you are financing, compare total lender costs, not just the rate.
Ready to move forward?
If you want a clear, line-by-line estimate for your Miami Beach condo or waterfront home, we are here to help. The Horizon Team makes complex coastal closings feel simple, including remote coordination for out-of-state and international clients. Connect with Donna Zalter for a personalized closing cost walkthrough and a strategy to negotiate who pays what.
FAQs
What are typical buyer closing costs for a financed Miami Beach condo?
- Expect mortgage documentary stamp and intangible taxes, lender fees, appraisal, inspections, the lender’s title policy, recording, and prepaids, which can total several thousand to low five figures depending on price and loan size.
Who usually pays for owner’s title insurance in Miami-Dade?
- It is often the seller in Miami-Dade, but this is contract specific, so confirm the party paying for both the owner’s and lender’s policies in writing.
How are Florida documentary stamp taxes on the deed calculated?
- The rate is 0.007 times the purchase price, which equals $0.70 per $100 of value, and in many Miami-Dade transactions the seller pays, subject to the contract.
What should I know about condo estoppel and transfer fees in Miami Beach?
- Associations typically charge an estoppel fee often around $150 to $500 or more, plus possible transfer or application fees, and who pays varies by building and contract.
How does paying cash change closing costs in Miami Beach?
- Cash buyers avoid the mortgage note doc stamp, intangible mortgage tax, and lender fees, but still pay for inspections, recording, prorations, and possibly other association or title-related items per contract.
What is the Closing Disclosure timing for a financed purchase?
- Your lender must deliver a Closing Disclosure at least 3 business days before consummation, giving you time to review all charges and prepaids before closing.
