Guide
Commercial Closing Costs in Florida: Who Pays What
Closing a commercial property costs more than the price, on both sides. Florida's documentary stamp tax on the deed, title insurance, the survey, the lender's costs, the due-diligence reports and the prorations add up, and who pays which is negotiated in the contract rather than fixed by custom. The closing agent and your attorney confirm the figures for your deal.
Ask a Commercial Specialist · (786) 914-1017
Seller Costs
Documentary stamp tax on the deed, charged by the state on the price; the owner's title insurance policy in most Florida counties (the contract can shift it); the real estate commission, as agreed in the listing agreement; the payoff of any mortgage and its release; prorated property taxes and any assessments to the closing date; the seller's attorney; and tenant deposits and prepaid rents credited to the buyer. A 1031 exchange adds the intermediary's fee.
Buyer Costs
The lender's title policy and endorsements, the appraisal, the environmental assessment, the survey, the inspections, documentary stamp tax and intangible tax on the mortgage, recording fees, loan origination and processing fees, the buyer's attorney, and prorated taxes and operating costs from closing. An SBA loan adds the guarantee and CDC fees. Budget two to four percent of the price beyond the down payment, more with a loan; consult your lender and closing agent.
Prorations and Credits
Property taxes (paid in arrears in Florida), rents, CAM collections, deposits and service contracts are prorated to the closing date. A buyer of a leased building receives the tenants' deposits and any prepaid rent as a credit; the rent roll and the estoppel certificates fix the figures.
Due Diligence Is a Cost Too
The Phase I, the survey, the inspections, the lease review and the appraisal are spent whether or not the deal closes, which is why a buyer negotiates a due-diligence period before spending them, and why a seller who prepares the building and its documents in advance attracts buyers who will spend them.
Ask a Commercial Specialist
Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.
Frequently Asked Questions
- Who pays title insurance on a commercial sale in Florida?
- Custom varies by county (in most the seller pays the owner's policy; in Miami-Dade and a few others the buyer usually does), and the contract can set it either way. The buyer pays the lender's policy.
- How much is documentary stamp tax?
- A state tax on the deed at a rate per hundred dollars of price, paid by the seller by custom, plus a separate stamp and intangible tax on any new mortgage, paid by the borrower. The closing agent calculates the exact figures; Miami-Dade has a surtax on some transfers.
- Are commercial commissions fixed?
- No. The brokerage commission is negotiable and agreed in writing in the listing agreement before marketing. On the buy side it is usually paid from the seller's side under that agreement.
Commercial Services
Calculators
Commercial Guides
- Gross, Modified Gross and Triple-Net Leases
- CAM Charges Explained
- Tenant Improvement Allowance
- Personal Guarantees
- From Letter of Intent to Lease
- Zoning and the Certificate of Use
- Phase I Environmental Site Assessment
- SBA 504 Loans for Owner-Users
- Opportunity Zones in Florida
- The Live Local Act for Owners
- Commercial Property Tax in Florida
- Lease or Buy Your Business's Space?
- How Commercial Property Is Valued