Wondering how much cash you will need to close on a Boca Raton home or what it will cost to sell? You are not alone. Closing costs can feel confusing, especially with condo and HOA fees in the mix. In this guide, you will learn who typically pays what in Palm Beach County, how much to budget, line‑by‑line items to expect, and how to get exact numbers for your situation. Let’s dive in.
Closing costs, in plain English
Closing costs are the one‑time expenses due at the closing table, separate from your down payment. Both buyers and sellers pay closing costs, and many items are set by your lender, title company, and local or state fees. In Florida, many costs are negotiable and can shift between parties based on the contract. Exact figures come from your lender’s Loan Estimate and Closing Disclosure, plus your title company’s closing statement.
Who pays what in Boca Raton
In Palm Beach County, buyers typically pay their lender fees, mortgage‑related taxes on the loan, the lender’s title policy, inspections, appraisal, and prepaid escrow for taxes and insurance. Sellers commonly pay the brokerage commission and, by local custom in much of South Florida, the owner’s title insurance policy. Who pays specific items is negotiable and set by the purchase contract. Your agent and title company will confirm the norms for your property type and community.
Typical totals at a glance
- Buyers: plan for about 2% to 5% of the purchase price in closing costs, excluding your down payment.
- Sellers: plan for about 6% to 10% of the sale price, which includes agent commissions that are often 5% to 6% of the sale price.
- These are planning ranges. Your lender, title company, and HOA will provide exact figures for your transaction.
Buyer closing costs: line by line
Lender fees
- Loan origination or application fee (sometimes 0% to 1% of the loan). Varies by lender.
- Underwriting, processing, and credit report fees. Often flat amounts.
Mortgage taxes and state fees
- Florida charges documentary stamp tax on recorded mortgages and an intangible tax on notes secured by real property. Lenders usually pass these to the borrower at closing. Confirm current rates with your lender and title company.
Title and escrow
- Lender’s title insurance policy: a one‑time premium required by most lenders.
- Owner’s title insurance: often paid by the seller by local custom, but it is negotiable and should be confirmed in the contract.
- Title search, closing and escrow fee, wiring fees, and recording fees for the mortgage and deed.
Prepaids and escrows
- Prepaid interest based on your closing date.
- Homeowner’s insurance: often the first year premium due at closing or placed in escrow.
- Property tax escrow: lenders commonly collect a few months of reserves.
Inspections and third‑party reports
- General home inspection: commonly around a few hundred dollars depending on size and scope.
- Termite or WDI inspection if applicable.
- Appraisal ordered by the lender.
- Survey if required by the lender or title company.
HOA and condo fees
- Association application or administrative fees. Amounts vary by community.
- Estoppel or resale certificate fees confirming dues and assessments. These are common in Boca Raton’s condo and HOA communities and can range widely.
Other items
- Flood determination or certification fee if required.
- Title endorsements and recording charges. Your title company will list these in your closing package.
Seller closing costs: line by line
Broker and agent commissions
- Typically 5% to 6% of the sale price in many Palm Beach County transactions. This is usually the largest seller cost.
Title and closing
- Owner’s title insurance premium: often seller‑paid by local custom in South Florida, though negotiable.
- Title search, closing fee, documentary stamps on the deed, and recording fees.
- Costs to record the release or satisfaction of your mortgage.
Prorations
- Property taxes and HOA dues prorated to the day of closing.
- Utilities or other recurring charges prorated if applicable.
HOA and condo items
- Estoppel or resale certificate fees are often required. Some associations also charge a transfer fee. Amounts and who pays vary by contract and community.
Loan payoff and other items
- Payoff of existing mortgage(s) and any related recording fees.
- Agreed repairs, credits, or concessions to the buyer if negotiated.
Boca Raton specifics to watch
Documentary stamps and mortgage taxes
Florida imposes documentary stamp tax on deeds and mortgages and an intangible tax on certain notes. In South Florida, sellers often pay deed doc stamps by custom, but the contract controls. Confirm who pays and the current rates with your title company and lender.
County recording fees
Recording charges for deeds, mortgages, and releases are set by the Palm Beach County Clerk & Comptroller. These fees are usually modest but depend on how many pages and instruments are recorded.
HOA and condo realities
Boca Raton has many condo and HOA communities. Lenders and buyers commonly need estoppel or resale certificates, association applications, and sometimes background checks. Estoppel and transfer fees vary by association, and document turnaround can take days to a week or more. Request the fee schedule early to avoid delays.
Property taxes and homestead timing
Florida property taxes are billed annually, and taxes are prorated at closing. Homestead exemption timing can affect net taxes for sellers and buyers after they move in. The Palm Beach County Property Appraiser is the authority on homestead and tax timelines.
Flood zones and insurance
Some Boca Raton properties are in flood zones. If the home is in a special flood hazard area, your lender will require flood insurance. Expect a small flood determination fee at closing and plan for the ongoing insurance cost in your budget.
How to estimate your closing costs
- Ask your lender for a Loan Estimate within three business days of application. This document outlines your projected closing costs, prepaids, and escrow reserves.
- Request a preliminary closing statement from your title company once you are under contract. It will show title premiums, recording charges, and documentary taxes as applicable.
- If you are buying in an HOA or condo, have the seller or listing agent order the estoppel or resale package early. This reveals any association fees and confirms balances and assessments.
- As a seller, ask your agent or title company for a net sheet with different scenarios: standard costs, potential concessions, and any known repairs or credits.
Boca Raton planning examples
Below are simple planning snapshots using conservative assumptions to help you budget. Your actual figures will come from your lender, title company, HOA, and payoff statements.
Example A: Entry‑price condo at $350,000
- Seller costs: commission about $19,250 (5.5%), owner’s title about $1,750 (0.5%), plus about $2,000 for estoppel, recording, and prorations. Total around $23,000 (about 6.6%).
- Buyer costs: about 3% or $10,500, which includes lender fees, title, appraisal, inspections, and prepaids.
Example B: Mid‑market single‑family at $750,000
- Seller costs: commission about $41,250 (5.5%), owner’s title about $3,750 (0.5%), plus around $3,500 for prorations and fees. Total about $48,500 (about 6.47%).
- Buyer costs: about 3% or $22,500. Escrow reserves for taxes and insurance are larger at this price point.
Example C: Luxury property at $2,000,000
- Seller costs: commission about $110,000 (5.5%), owner’s title about $8,000 (rate often declines with price by schedule), plus $5,000 to $10,000 for other items. Total about $123,000 to $128,000 (about 6.15% to 6.4%).
- Buyer costs: about 2.5% to 3% or $50,000 to $60,000.
Timeline and documents for exact numbers
For buyers
- Loan Estimate from your lender after application and a final Closing Disclosure at least three business days before closing.
- Itemized estimate from your title company for title premiums, recording, and documentary taxes.
- HOA or condo estoppel or resale certificate to confirm association fees and assessments.
For sellers
- Seller net sheet from your listing agent or title company with multiple scenarios.
- Official payoff statement from your mortgage servicer with a payoff date and any recording fees to release the lien.
- HOA or condo estoppel or resale package to identify any transfer fees or special assessments.
Avoid surprises: quick tips
- Nail down association fees early. Estoppel and transfer fees vary and can affect your bottom line.
- Confirm who pays owner’s title insurance and deed doc stamps in your contract. Local custom is helpful, but the contract governs.
- Choose a closing date that fits your cash flow. Closing later in the month can reduce prepaid interest for buyers.
- If you are selling, gather your mortgage details, recent tax bill, and any prior survey at the listing stage to speed up your net sheet and closing prep.
Ready to run your numbers?
If you are planning a move in Boca Raton, you deserve a clear, local breakdown before you make your next decision. Our team models buyer and seller scenarios, requests HOA fees early, and coordinates with your lender and title company so you know where every dollar goes. For a personalized estimate and next steps, reach out to AJ Bergman.
FAQs
Who usually pays owner’s title insurance in Boca Raton?
- In much of South Florida, sellers often pay the owner’s title policy by local custom, but it is negotiable and must be confirmed in your purchase contract.
How much are HOA or condo estoppel and transfer fees in Palm Beach County?
- Fees vary by association. Estoppel or resale documents often cost about $100 to $500 or more, and some communities charge a separate transfer fee. Request the fee schedule early.
Are Florida documentary stamp taxes paid by the seller or buyer?
- Documentary stamp taxes apply to deeds and mortgages, and who pays is negotiable in the contract. In South Florida, sellers often pay deed doc stamps by custom, but confirm in your agreement.
Do lenders require escrow for taxes and insurance on Boca Raton homes?
- Most lenders collect upfront escrow reserves for property taxes and homeowner’s insurance, plus prepaid interest. Cash buyers may avoid escrow but still settle prorations and initial insurance.
When can I get exact closing cost numbers for a home in Boca Raton?
- Buyers receive a Loan Estimate after applying and a final Closing Disclosure before closing. Sellers can get a net sheet from their agent or title company and should request a payoff from their lender. HOA estoppels can take several days to produce.
