Real Estate Closings
A closing is a sequence. Each step depends on the one before it, and most delays trace back to a step that was skipped.
The steps
Contract signed
The agreement between buyer and seller is executed.
Deposit
The deposit is placed into escrow and held.
Inspections and financing
Inspections are completed and financing is finalized.
Title commitment
We issue the commitment and set out what must be cleared.
Clear to close
All conditions are satisfied and the file is ready.
Final walk-through
The buyer confirms condition and completed repairs.
Closing day
Documents are signed, funds are received, ownership transfers.
Keys delivered
The buyer becomes the owner of record.
Who pays what in a Miami closing
Local customFlorida has no statewide rule allocating closing costs. Custom varies by county and the contract controls.
Customarily paid by the seller
- Real estate commission
- Documentary stamp tax on the deed
- Satisfaction of the seller's existing mortgage
- A property tax credit to the buyer, since Florida taxes are paid in arrears
- HOA or condominium estoppel fees
Customarily paid by the buyer
- Documentary stamp tax on the note and the intangible tax, where there is financing
- The lender's title policy
- Inspections and appraisal
- Recording fees on the deed and mortgage
And the one that depends on where you are
The owner's title policy. Across most of Florida the seller pays. In Miami-Dade, Broward, Sarasota and Collier the buyer customarily pays, and the party who pays generally selects the closing agent.
Buyers who have closed in Orlando or Tampa arrive expecting the seller to cover it. In Miami they are usually the ones paying. It is worth knowing before the closing statement arrives rather than at it.
Miami-Dade documentary stamps
Deed taxThe documentary stamp rate on the deed is different here from the rest of Florida.
| Where and what | Applies to | Rate |
|---|---|---|
| Florida, statewide | All property | $0.70 |
| Miami-Dade | Single family residence | $0.60 |
| Miami-Dade surtax | Anything that is not a single family residence | $0.45 |
| Miami-Dade, combined | Commercial and multi-family | $1.05 |
So a single family home in Miami-Dade is taxed at a lower rate than the rest of the state, and a commercial building or a multi-family property is taxed higher. The tax is calculated on the total consideration, which includes any mortgage the buyer assumes. Where a buyer takes on an existing lien as part of the deal, the stamps are calculated on the whole figure, not on the cash.
Three things delay closings
Where time is lostTitle problems
Liens, ownership defects, a probate that was never completed, an old mortgage that was paid but never satisfied of record.
All of these take time to clear, and all of them are found in the search rather than on closing day. The earlier the search starts, the more room there is.
Missing documents
Corporate authority, powers of attorney, estoppel letters, lien searches, surveys.
Each has a lead time and each is capable of stopping a closing on its own.
Late financing changes
A lender's condition that surfaces late, a rate lock expiring, or an underwriting change after the clear to close.
All three are avoidable with the right team and enough lead time. None of them are avoidable in the last forty-eight hours.
Closing from outside the United States
Florida permits remote online notarization, which allows documents to be signed and notarized over a live video connection with a commissioned Florida online notary. For a buyer or seller in Bogotá, São Paulo or Madrid, that means no consulate appointment and no apostille for the signing itself.
The practical points are these. Identity verification is required and takes longer than an in-person signing. International wires need more lead time than domestic ones, particularly where a correspondent bank is involved. And where a foreign seller is disposing of the property, FIRPTA withholding has to be settled before the closing date rather than at it.
We work in English, Spanish and Portuguese, and a substantial part of our closing practice is conducted with parties who never enter the country.
Where we act
ScopeEscrow and settlement. Title commitment and clearing. Preparation and review of closing documents. Disbursement. Remote online notarization. Coordination with lenders, realtors, associations and the other side's counsel.
Tell us what you're closing.
Give us the property, the parties, and the date you need to close. We will tell you what the transaction requires and what it will cost.