Closing Costs in Palm Beach County Explained

Buying or selling in Palm Beach County and unsure what you will actually pay at closing? You are not alone. Closing costs can feel confusing, and last‑minute surprises are never fun. The good news is you can anticipate most line items with a simple plan and the right local checks. In this guide, you will learn what closing costs include, who typically pays what in Palm Beach County, and how to estimate your all‑in number early so you can move forward with confidence. Let’s dive in.

What closing costs include

Closing costs are the third‑party fees, prepaid items, prorations, and taxes that settle when the deed and any mortgage are recorded. Some costs are set by law or third parties. Others depend on your lender, title company, and the terms of your contract.

You will see these major categories:

• Transaction fees: title search, title insurance, closing or escrow fee, recording, courier, and notary.
• Lender fees: origination, underwriting, processing, points, appraisal, and a credit report fee.
• Prepaid items: the first year of homeowner’s insurance, initial escrow deposits for taxes and insurance, and prepaid interest.
• Prorations: property taxes, HOA dues, and other recurring charges split based on the closing date.
• Government charges: state documentary stamp taxes, intangible taxes on mortgages, and county recording fees.
• Seller costs: commission, payoff of any mortgage, prorated taxes, and any repairs or credits agreed in the contract.

Who pays what in Palm Beach County

Payment responsibilities are guided by local custom and your contract. Buyers usually pay lender fees, appraisal and credit report, inspections, the lender’s title policy, recording of the mortgage, and prepaid escrows. Sellers commonly pay the commission, mortgage payoff, and their share of prorations.

In many Florida transactions, the seller pays for the owner’s title insurance policy, but this can vary by city, neighborhood, and contract terms. Always confirm what is typical for your specific deal with your title company and agent.

Buyer closing costs to expect

Lender and appraisal fees

• Loan Estimate and Closing Disclosure: After you apply, your lender must provide a Loan Estimate within three business days. You receive the final Closing Disclosure at least three business days before you sign the loan. Use these to track fees and compare options.
• Appraisal and credit report: Lenders order an appraisal to verify value and pull your credit report. You usually pay these.

Title and recording

• Title search and insurance: You will typically pay for the lender’s title policy. The owner’s policy is a contractual point and may be paid by the seller. Title insurance premiums in Florida follow filed rates that scale with the purchase price. Your title company will quote accurate numbers.
• Closing or escrow fee: The title company manages paperwork and money movement. This fee may be split or paid by one party depending on the contract.
• Recording fees: Palm Beach County charges to record the deed and mortgage. Your title company will estimate based on page counts and document types.

Insurance, escrows, and prepaid interest

• Homeowner’s insurance: Lenders require hazard insurance. You either prepay the first year or fund an escrow at closing.
• Flood insurance: If the property is in a required flood zone, lenders will require coverage. Premiums depend on zone and elevation, so confirm early.
• Prepaid interest: Covers interest from the day you close to month‑end. Your lender will calculate this based on your rate and closing date.
• Initial escrow deposit: Lenders often collect several months of taxes and insurance to set up your escrow account.

HOA and inspections

• Inspections: General home inspection and any specialty checks, like termite or WDO, roof, pool, septic, or sewer. Most buyers order these.
• HOA and condo fees: Estoppel, transfer, and document fees may apply if the home is in an association. These are required to verify dues and move ownership records.

Taxes and state charges

• Documentary stamp and intangible taxes: Florida imposes state documentary stamp taxes and an intangible tax on mortgages. Your title company and lender apply current rules to your loan and contract.

Prorations

• Property taxes and HOA dues: These are prorated based on the closing date. Your title company uses tax history and association data to compute the split.

Seller closing costs to expect

Commission and mortgage payoff

• Commission: This is the largest seller cost in many sales. Commission is negotiable. Local norms exist and may vary.
• Payoff: Your mortgage payoff includes principal, daily interest, and any lender fees. Request a payoff statement early so the title company can verify the exact amount.

Title, taxes, and transfer items

• Owner’s title policy: In many Florida deals, sellers pay the owner’s title policy, but this depends on your contract and local practice.
• Prorations: You owe your share of property taxes and HOA dues up to the closing date.
• Closing or settlement fee: This may be split or assigned per your contract.
• State taxes: Documentary stamps on the deed and other transfer items follow Florida rules. Your title company will allocate based on the contract.

Credits, repairs, and association requirements

• Repairs or credits: Any inspection‑related items you agree to complete or credit will affect net proceeds.
• HOA obligations: Associations may charge estoppel and transfer fees or require reserves. Clear these early to avoid delays.

Palm Beach County specifics to watch

• Recording and clerk fees: Palm Beach County Clerk and Comptroller sets per‑page recording and administrative charges. Your title company will compute exact amounts based on documents.
• Property taxes and prorations: Use the Palm Beach County Property Appraiser’s data for assessed values, exemptions, millage history, and any special assessments. Title companies rely on this to calculate fair prorations.
• State documentary stamps and intangible tax: Florida Department of Revenue rules determine the taxes on deeds and mortgages. Your title and lender teams apply the current formulas.
• Flood zones and insurance: Many Palm Beach properties sit in coastal or low‑lying areas. Verify the FEMA flood zone and get quotes early because coverage can materially affect monthly payments and closing funds.
• HOA and condo estoppels: Estoppel letters confirm dues, special assessments, and violations. Turnaround times and fees vary by association. This is a common source of last‑minute adjustments, so start early.
• Municipal and special assessments: Some areas levy assessments for items like drainage or solid waste. Confirm status in county and association records to avoid surprises.

Estimate your all‑in number early

Here is the practical, step‑by‑step process to get accurate numbers up front.

1. Gather the contract basics

• Purchase price, closing date, financing or cash, and any negotiated credits or concessions.

2. Pull public data

• Look up the property with the Palm Beach County Property Appraiser to confirm recent tax amounts, exemptions, and parcel details.
• Check typical county recording fees for deeds and mortgages.

3. Call the title company

• Request an estimated title insurance premium for both lender and owner policies using Florida filed rates. Ask for their closing and search fees.
• If there is an HOA or condo, request the estoppel and transfer fee schedule.

4. Get lender inputs

• If you are financing, your lender provides a Loan Estimate with fees, appraisal, credit report, and projected escrow deposits.
• Confirm whether flood insurance is required and what coverage amount they will need.

5. Estimate third‑party services

• Price the appraisal, home inspection, survey, and any specialty inspections based on typical local vendors.

6. Compute prorations

• Use the Property Appraiser’s tax history and your closing date to compute property tax prorations.
• Prorate HOA dues and any assessments using association data.

7. Add prepaid items

• Include homeowner’s insurance, potential flood insurance, prepaid interest, and the initial escrow deposit required by the lender.

8. Build both sides of the sheet

• For sellers, add commission, payoff estimates, prorations, and any title or transfer fees assigned by the contract.
• For buyers, list down payment, closing costs, and prepaid items to get a clear cash‑to‑close number.

9. Review and update

• Reconcile your draft with the title company and the lender’s Closing Disclosure before final sign‑off.

Quick checklists

Buyer checklist

• Lender preapproval and Loan Estimate
• Signed contract and proposed closing date
• Title company fee quote and title insurance premiums
• Property Appraiser tax history for prorations
• Insurance quotes, including flood if required
• Inspection and survey orders
• HOA or condo estoppel and transfer fees

Seller checklist

• Mortgage payoff request to current lender
• Recent property tax bill and HOA contact info
• Clarify who pays owner’s title policy in your contract
• Confirm any special assessments or association reserves
• Review commission agreement and marketing timeline
• Order estoppel and any required municipal lien or compliance searches

Short glossary

• Title insurance: Protects owners and lenders against certain title defects. Policies are priced using Florida filed rates.
• Escrow account: Lender‑held account for taxes and insurance, funded at closing and with monthly payments.
• Prorations: A split of recurring costs based on the closing date so each party pays their portion.
• Estoppel letter: HOA or condo statement listing dues, assessments, and violations needed for closing.
• Documentary stamp and intangible taxes: Florida state taxes on deeds and mortgages.

Your next step

You do not need to guess at closing costs. With the right documents and a few local checks, you can pin down your cash‑to‑close or net proceeds early and avoid surprises. If you want a tailored buyer or seller net sheet for a Palm Beach property, reach out and we will map it out together.

Lean On Me. Connect with Erik Ginsberg, Premier Group for a personalized closing cost estimate and a clear plan from offer to close.

FAQs

How much should I budget for closing costs in Palm Beach County?

• It depends on your loan type, title fees, and prepaid items. Ask your lender for a Loan Estimate and your title company for exact title and recording charges, then build a buyer or seller net sheet with your agent.

Who typically pays for title insurance in Palm Beach County?

• Practices vary. In many Florida deals, sellers pay for the owner’s title policy, while buyers pay for the lender’s policy. Your contract controls, so confirm with your title company.

Are real estate commissions fixed for home sales?

• No. Commissions are negotiable between you and the listing brokerage. Local norms exist, but terms vary by property and service level.

What taxes and prorations will show up at closing?

• Property taxes and HOA dues are prorated based on the closing date. Title companies use Palm Beach County Property Appraiser data and association records to compute your share.

Will I need flood insurance for a Palm Beach home?

• Possibly. Many areas are in flood zones that trigger lender requirements. Check FEMA flood maps and get quotes early to understand coverage and cost.

Can I roll buyer closing costs into my mortgage?

• Sometimes. It depends on loan type, lender policies, and whether your contract includes seller credits. Your loan officer can confirm what is allowed.

When will I see my final closing numbers?

• For financed purchases, lenders must deliver the Closing Disclosure at least three business days before closing. The title company’s settlement statement will match final payoffs, taxes, and fees at signing.