Quick Answers on WPB Closing Costs
- Buyers typically pay 2 to 5% of the purchase price in closing costs, depending on loan type, property type, and whether buying with financing or cash.
- Sellers typically pay 6 to 8% of the sale price, with real estate agent commissions historically the largest line item (this is shifting after the 2024 NAR settlement).
- Florida's documentary stamps on the deed are $0.70 per $100 of sale price, paid by the seller by Palm Beach County custom. On a $500,000 sale, that's $3,500.
- Florida documentary stamps on the mortgage note are $0.35 per $100 of mortgage amount, paid by the buyer. Plus Florida intangible tax of $0.002 per dollar of mortgage.
- Owner's title insurance in Palm Beach County is customarily paid by the seller. This is the opposite of many other states.
- Lender's title insurance is required by mortgage lenders and is paid by the buyer (or rolled into closing).
- HOA and condo association estoppel fees are paid by the seller. WPB and Palm Beach County associations charge regulated maximum amounts.
Closing a Property in West Palm Beach?
We handle West Palm Beach and Palm Beach County real estate closings, including title insurance, title examination, and curative work. Direct agents for The Fund and Westcor.
What buyers actually pay at closing in West Palm Beach
Buyer-side closing costs in WPB typically run 2 to 5% of the purchase price. The actual percentage depends on whether the buyer is financing (loan-related fees add substantially) or paying cash, plus the property type (condo and HOA properties add estoppel costs), plus whether the buyer is local or relocating from out of state.
| Buyer cost | Typical amount | Notes |
|---|---|---|
| Lender's title insurance | ~$500 to $2,500 | Required by mortgage lenders. Premium scales with loan amount. |
| Loan origination and underwriting fees | 0.5% to 1% of loan amount | Lender-specific. Often disclosed in the Loan Estimate. |
| Appraisal fee | $500 to $1,000 | Required by most lenders. Paid before closing. |
| Property inspection | $400 to $800 | Optional but strongly recommended. Paid before closing. |
| Florida documentary stamps on mortgage note | $0.35 per $100 of mortgage | State tax. On a $400,000 loan, that's $1,400. |
| Florida intangible tax on mortgage | $0.002 per dollar of mortgage | State tax. On a $400,000 loan, that's $800. |
| Recording fees | $50 to $200 | Palm Beach County Clerk fees for recording the deed and mortgage. |
| Survey (if required) | $300 to $600 | Some title policies and lenders require a current survey. |
| Municipal lien search | $150 to $300 | Standard practice in PBC to ensure no unrecorded liens. |
| HOA / condo application and approval fees | $100 to $500 | Variable by association. Some buildings charge transfer fees up to thousands. |
| Property tax proration | Variable | Buyer reimburses seller for prepaid taxes covering buyer's ownership period. |
| Prepaid items (insurance, HOA dues, taxes) | 1 to 12 months | Lender-required reserves and prepaid coverage. |
What sellers actually pay at closing in West Palm Beach
Seller-side closing costs in Palm Beach County typically run 6 to 8% of the sale price, with real estate agent commissions historically the largest single line item.
| Seller cost | Typical amount | Notes |
|---|---|---|
| Real estate agent commissions | 5 to 6% of sale price | Historically 5 to 6% split between buyer's and seller's agents. After the 2024 NAR settlement, commission structures are renegotiating. |
| Florida documentary stamps on deed | $0.70 per $100 of sale price | State tax. On a $500,000 sale, that's $3,500. Highest in the nation outside Miami-Dade County. |
| Owner's title insurance | ~$0.005 to $0.0058 per dollar | Per the Florida promulgated rate schedule. On a $500,000 sale, around $2,575. Customarily paid by seller in PBC. |
| HOA / condo estoppel fees | ~$250 to $500 | Regulated maximum in Florida. Required to clear association balance at closing. |
| Title search and examination | $100 to $400 | Included in title insurance pricing in many cases. |
| Property tax proration | Variable | Seller reimburses buyer for unpaid taxes covering seller's ownership period. |
| Mortgage payoff and satisfaction recording | Mortgage balance + $50 recording | If seller has an outstanding mortgage. |
| Documentary and miscellaneous closing fees | $300 to $700 | Wire fees, courier, document prep, attorney closing fees. |
Our piece on whether the buyer or seller pays title insurance covers the customary allocation in detail. Allocation is negotiable and frequently shifts based on market conditions.
Buying or selling property in West Palm Beach?
We handle the full closing process, from contract review through recording. Direct agents for The Fund and Westcor Land Title Insurance Company. Call (561) 672-1161 or submit through the contact form.
Florida documentary stamps: the tax most out-of-state buyers and sellers don't expect
Florida's documentary stamp taxes are among the highest real estate transfer taxes in the United States, and they often surprise buyers and sellers relocating from states without them.
Two separate documentary stamps apply to Florida real estate transactions:
Documentary stamps on the deed. Paid by the seller in Palm Beach County by local custom (though legally negotiable). Rate: $0.70 per $100 of sale price. A $500,000 sale produces $3,500 in deed doc stamps; a $1 million sale produces $7,000.
Documentary stamps on the mortgage note. Paid by the buyer. Rate: $0.35 per $100 of mortgage amount. A $400,000 mortgage produces $1,400 in note doc stamps.
Plus the Florida intangible tax on mortgages: $0.002 per dollar of mortgage, paid by the buyer. A $400,000 mortgage produces $800 in intangible tax.
None of these are negotiable as to amount (the rates are set by state statute), but the allocation between buyer and seller can be modified by contract. The local custom in Palm Beach County, however, is very consistent.
Owner's title insurance in Palm Beach County
Title insurance is a one-time premium paid at closing that protects against loss from defects in title that existed at the time of the policy. Two policies typically issue at closing:
Owner's title insurance policy. Protects the buyer (new owner) for as long as they own the property. In Palm Beach County, the seller customarily pays for the owner's policy as part of closing. This is the opposite of many other states.
Lender's title insurance policy. Protects the mortgage lender for the loan amount. The buyer customarily pays for the lender's policy when financing.
Florida title insurance rates are set by the state and follow a promulgated schedule. The premium is calculated as a sliding-scale percentage of the policy amount. Approximate calculations for a $500,000 property:
- Owner's policy on $500,000: approximately $2,575
- Lender's policy add-on (simultaneous issue): approximately $25 to $100
For higher-value properties (which is common in Palm Beach County, especially in Palm Beach proper, Manalapan, and Jupiter Island), the marginal rate decreases. Our piece on title insurance generally and title insurance in Palm Beach County covers the underwriting, coverage, and curative work in detail.
HOA and condo association estoppel fees
For Palm Beach County properties within an HOA or condominium association, the association must issue an estoppel certificate at closing showing the seller's account balance, any pending assessments, and any other association obligations. This is required before title can transfer cleanly.
Florida law caps the maximum estoppel fee at approximately $299 (or $499 for an expedited estoppel within 3 business days). Some associations attempt to charge more, but the statutory cap applies.
The estoppel is paid by the seller at closing. The associated balance owed to the association (unpaid assessments, special assessments, fines) must be cleared at closing or the buyer assumes responsibility.
The single largest "surprise" cost in Palm Beach County closings is the combined effect of Florida documentary stamps on the deed PLUS owner's title insurance, both customarily paid by the seller. On a $500,000 sale, that's $3,500 in doc stamps plus approximately $2,575 in owner's title insurance, totaling about $6,075 in seller costs before agent commissions. On a $1 million sale, the comparable total is roughly $11,800. Out-of-state sellers relocating from states with lower transfer taxes (or no transfer taxes at all) are often unprepared.
For buyers, the corresponding surprise is the combined effect of Florida documentary stamps on the mortgage note PLUS Florida intangible tax on the mortgage, both paid by the buyer. On a $400,000 mortgage, that's $1,400 in note doc stamps plus $800 in intangible tax, totaling $2,200 in state taxes alone, beyond the lender's title insurance, appraisal, and other closing costs. Cash buyers avoid these mortgage-specific taxes entirely, which is one reason cash offers are increasingly common in higher-value Palm Beach County transactions. For buyers planning to use significant financing, calculating these state taxes into the cash-to-close estimate from the start avoids the surprise at closing.
How property tax proration works in Palm Beach County
Florida property taxes are paid in arrears (after the fact). Tax bills are issued in November for the calendar year ending the prior December. At any given closing during the year, taxes for the current year haven't been billed yet.
At closing, the parties prorate the taxes based on the closing date:
- If the seller has prepaid taxes covering the buyer's future ownership period, the buyer reimburses the seller for that prepaid portion
- If the seller has not yet paid taxes for their ownership period (most common case), the seller credits the buyer for the taxes that will eventually be due covering the seller's ownership period
The closing statement shows the proration calculation. For Palm Beach County, the proration uses the most recent prior year's actual tax bill as the base, with a year-over-year adjustment built in.
The 2024 NAR settlement and changes to real estate commissions
In 2024, the National Association of Realtors settled a series of lawsuits over commission structures. The settlement, effective August 2024, changed how buyer's agent commissions are negotiated and disclosed.
Key changes that affect WPB closings:
- Buyer's agent compensation is no longer required to be offered through MLS listings
- Buyers must enter written agreements with their agents specifying compensation before touring properties
- Sellers can still pay buyer's agent commissions, but it's a separately negotiated term
- Commission structures vary more by market and individual transaction
The practical effect: total commission may shift between parties, but the total transaction cost is similar. Sellers may pay less in commissions if buyers cover their own agent's fee. Some buyers are negotiating reduced offers to account for paying their own agent. Market practices in West Palm Beach are still settling into a new equilibrium.
Cash closings vs. financed closings: cost comparison
| Cost | Cash buyer | Financed buyer |
|---|---|---|
| Loan origination, underwriting | None | 0.5 to 1% of loan |
| Appraisal | None (optional) | $500 to $1,000 (lender required) |
| FL doc stamps on note | None | $0.35 per $100 of mortgage |
| FL intangible tax on mortgage | None | $0.002 per dollar of mortgage |
| Lender's title insurance | None | ~$500 to $2,500 |
| Prepaid lender reserves | None | 1 to 12 months |
| Inspection | Optional | Strongly recommended |
| Survey | Optional | Often required by lender |
On a $500,000 purchase with $400,000 in financing, a financed buyer typically pays $4,000 to $7,000 more in closing costs than a cash buyer for the same property, before accounting for ongoing mortgage interest. This is one reason cash offers carry significant negotiating power in competitive South Florida markets.
Why work with Kelley, Grant & Tanis, P.A.
The firm handles West Palm Beach and Palm Beach County real estate closings as direct agents for The Fund (Attorneys' Title Fund Services) and Westcor Land Title Insurance Company. We coordinate title search, examination, lien searches, HOA/condo estoppel, curative work, and closing logistics for both buyers and sellers. Our practice integrates with the firm's title insurance, real estate law, and association law practices.
Our offices are in West Palm Beach (1645 Palm Beach Lakes Blvd, Suite #1200-3) and Boca Raton (370 Camino Gardens Blvd., Suite #301). In-person and remote closings are available.
Frequently Asked Questions
How much are closing costs in West Palm Beach?
Buyers typically pay 2 to 5% of the purchase price in closing costs, depending on whether financing or paying cash and on property type. Sellers typically pay 6 to 8% of the sale price, with real estate agent commissions historically the largest line item.
Who pays Florida documentary stamps on the deed?
The seller customarily pays Florida documentary stamps on the deed in Palm Beach County. The rate is $0.70 per $100 of sale price. On a $500,000 sale, that's $3,500. The allocation is legally negotiable but the local custom is consistent.
Who pays Florida documentary stamps on the mortgage note?
The buyer pays Florida documentary stamps on the mortgage note. The rate is $0.35 per $100 of mortgage amount. Plus Florida intangible tax of $0.002 per dollar of mortgage. On a $400,000 mortgage, that's $1,400 in note doc stamps plus $800 in intangible tax.
Who pays for title insurance in West Palm Beach?
In Palm Beach County, the seller customarily pays for the owner's title insurance policy. The buyer pays for the lender's title insurance policy when financing. This is the opposite of many other states, where buyers typically pay for owner's title insurance. The allocation is negotiable.
How much does title insurance cost in Florida?
Florida title insurance rates are set by the state and follow a promulgated schedule. An owner's policy on a $500,000 property is approximately $2,575. The lender's policy issued simultaneously is significantly less, typically $25 to $100 additional. Rates decrease as a percentage for higher-value properties.
What is the Florida intangible tax on mortgages?
Florida intangible tax is a one-time state tax of $0.002 per dollar of mortgage amount, paid by the buyer at closing. It's separate from Florida documentary stamps on the note. On a $400,000 mortgage, the intangible tax is $800.
How much do HOA estoppel fees cost?
Florida law caps the maximum estoppel fee at approximately $299 standard, or $499 for an expedited estoppel within 3 business days. The estoppel is paid by the seller at closing. The associated account balance owed to the association must be cleared at closing.
How does property tax proration work?
Florida property taxes are paid in arrears. At closing, the parties prorate taxes based on the closing date. If the seller has not yet paid taxes for their ownership period (most common case), the seller credits the buyer for the taxes that will eventually be due covering the seller's ownership period. The proration uses the most recent prior year's actual tax bill as the base.
Closing a Property in West Palm Beach?
We handle West Palm Beach and Palm Beach County real estate closings as direct agents for The Fund and Westcor. Buyer-side, seller-side, residential and commercial.