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Florida Closing Costs Explained: Who Pays What Under the Florida Realtors®/Florida Bar AS IS Contract?

Understanding Closing Costs Under Florida’s AS IS Residential Contract

One of the most common questions buyers and sellers ask during a real estate transaction is:

“Who pays for what at closing?”

Under the Florida Realtors®/Florida Bar AS IS Residential Contract for Sale and Purchase, many closing costs are allocated between the buyer and seller, although most items remain negotiable during contract negotiations. Understanding these costs before reaching the closing table can help prevent surprises and allow both parties to better prepare financially.

What Are Closing Costs?

Closing costs are the fees, taxes, insurance premiums, and other expenses required to complete a real estate transaction. In Florida, both buyers and sellers typically have closing costs, but the specific expenses paid by each party depend on the contract, local customs, financing terms, and negotiated concessions.

Common Buyer Closing Costs

Under many Florida transactions, buyers may be responsible for:

Loan origination fees
Appraisal fees
Credit report fees
Survey costs (if required)
Lender’s title insurance policy
Homeowners insurance premiums
Prepaid property taxes
Escrow deposits
Recording fees
Mortgage documentary stamp tax
Intangible tax on the mortgage

For financed purchases, buyers often incur the majority of mortgage-related closing costs.

Common Seller Closing Costs

Sellers often pay expenses related to transferring ownership of the property, including:

Documentary stamp tax on the deed
Mortgage payoff amounts
HOA estoppel fees
Prorated property taxes
Agreed-upon seller concessions
Owner’s title insurance policy (depending on contract terms and local custom)

The seller’s exact costs can vary based on the county, contract negotiations, and whether concessions are offered to the buyer.

Who Pays for Title Insurance Under the AS IS Contract?

One of the most misunderstood portions of the AS IS Contract involves title insurance and closing services.

The Florida Realtors®/Florida Bar AS IS Contract allows the parties to determine who will select the closing agent and who will pay for the owner’s title insurance policy and related title charges. The party responsible for the owner’s title policy often has the ability to select the title company handling the transaction.

These title-related charges may include:

Owner’s title insurance premium
Title search
Municipal lien search
Settlement or closing fee
Other title-related services

While county customs may influence negotiations, the contract terms ultimately control who pays these expenses.

Are Closing Costs Negotiable?

Yes.

Many closing costs can be negotiated between the buyer and seller during the contract period. In some transactions, sellers may agree to contribute toward buyer closing costs through seller concessions. In other situations, buyers may agree to absorb additional costs to strengthen their offer.

Every transaction is unique, and buyers and sellers should review their contract carefully with their real estate professionals.

Why Understanding Closing Costs Matters

Closing costs can have a significant impact on the total amount of cash required to close. Buyers should understand that closing expenses extend beyond the down payment, while sellers should account for transfer taxes, title-related costs, and any negotiated concessions when estimating their net proceeds.

Understanding these expenses early in the transaction helps create a smoother closing experience and reduces the likelihood of unexpected costs.

Save Money with Sol Title’s $0 Settlement Fee

At Sol Title, we believe buyers and sellers deserve transparency when it comes to closing costs.

That’s why Sol Title proudly offers a $0 settlement fee while continuing to provide professional title insurance, escrow services, and real estate closings throughout Central Florida.

Whether you’re buying, selling, refinancing, or investing, our team is committed to helping make your closing experience as smooth and efficient as possible.

Related Resources

Contact Sol Title

Sol Title

1635 E. Highway 50
Clermont, Florida 34711

Orders@SolTitle.com

(352) 978-3199

This article is provided for informational purposes only and should not be considered legal, tax, or financial advice. Buyers and sellers should consult their own Realtor, attorney, lender, CPA, or other qualified professionals regarding their specific transaction.