Miami Closing Costs Guide

Quick Reference: Miami Buyer Closing Costs at a Glance

• Resale condo (cash): 1-2% of purchase price
• Resale condo (financed): 2-3.5% of purchase price
• New development condo: 3-4.5% of purchase price
• No mansion tax—unlike NYC's 1-3.9% tax on $1M+ purchases
• No mortgage recording tax—unlike NYC's 1.8-1.925% tax
• Attorney optional (but recommended)—unlike NYC's requirement

Understanding Miami Closing Costs

Miami's closing costs are significantly lower than New York's—one of the major financial advantages of buying in South Florida. There's no mansion tax, no mortgage recording tax, and attorney representation is optional (though we recommend it for international buyers and complex transactions).

This guide breaks down every component of Miami buyer closing costs, explains the differences between resale and new development purchases, and provides real-world examples so you know exactly what to budget.

Miami's Closing Cost Advantage: No Mansion Tax

The single biggest difference between Miami and NYC closing costs is the absence of a mansion tax. In New York, buyers pay 1-3.9% of the purchase price on properties over $1 million. In Florida, there's no equivalent tax.

Bottom line: A $5 million purchase in Miami saves $112,500 in mansion tax alone compared to NYC. This is before considering other closing cost differences.

Documentary Stamp Tax (Florida Transfer Tax)

Florida's documentary stamp tax is the state's equivalent of a transfer tax. Unlike NYC where the seller pays transfer taxes on resales, in Florida the allocation varies by county and is often negotiable.

Documentary Stamp Tax Rates

Most Florida counties:

• $0.70 per $100 of purchase price (0.7%)

Miami-Dade County (special rates):

• Single-family homes: $0.60 per $100 (0.6%)
• Condos and other property types: $0.60 + $0.45 surtax = $1.05 per $100 (1.05%)

Example: On a $2 million Miami-Dade condo purchase, documentary stamp tax would be: $2,000,000 x 1.05% = $21,000. On a $2 million condo in Broward or Palm Beach, it would be: $2,000,000 x 0.70% = $14,000.

Who Pays Documentary Stamp Tax?

On resale transactions, the seller typically pays documentary stamp tax. However, on new development purchases, the buyer often pays—adding this to your closing costs. This is always negotiable and should be reviewed in your contract.

Title Insurance

Title insurance protects against claims on the property's ownership. Florida has unique customs about who pays for title insurance depending on the county.

Who Pays for Title Insurance by County

Buyer typically pays:

• Miami-Dade County
• Broward County
• Collier County
• Sarasota County

Seller typically pays:

• Most other Florida counties

Title Insurance Costs

• Owner's title insurance: ~0.5-0.6% of purchase price
• Lender's title insurance (if financing): ~0.3-0.4% of loan amount
• Title search and closing fees: $500-$1,500

Example: On a $3 million Miami condo purchase, owner's title insurance would be approximately $15,000-$18,000.

Lender and Mortgage-Related Fees

If you're financing your purchase, you'll pay various lender fees. Unlike NYC, Florida has no mortgage recording tax—a significant savings.

Typical Lender Fees

• Loan origination fee: 0.5-1% of loan amount
• Appraisal fee: $350-$600
• Credit report fee: $50-$100
• Underwriting fee: $500-$1,000
• Flood certification: $15-$50

Intangible Tax on Mortgages

Florida charges an intangible tax of 0.2% (2 mills) on new mortgages. On a $1.6 million mortgage, this would be $3,200. This is much lower than NYC's mortgage recording tax of 1.8-1.925%.

Documentary stamps on notes: Florida also charges $0.35 per $100 on promissory notes (mortgages). On a $1.6 million mortgage, this would be $5,600.

Attorney Fees

Unlike New York, Florida does not require buyers to have attorney representation for real estate transactions. However, we strongly recommend using an attorney, especially for:

• International buyers navigating FIRPTA and entity structuring
• New development purchases requiring offering plan review
• Complex transactions with unusual terms
• Any purchase over $1 million

Attorney fee ranges:

• Standard resale: $1,500-$2,500
• New development: $2,000-$3,500
• Complex/international: $3,000-$5,000+

HOA and Building Fees

Condo purchases in Miami include various HOA-related fees that should be factored into your closing costs.

• Estoppel fee (HOA payoff letter): $150-$500
• HOA transfer/application fee: $100-$500 per applicant
• Move-in fee: $250-$1,000
• Capital contribution (new development): Often 2 months of HOA fees

Important for 2025: With Florida's new condo safety laws requiring fully funded reserves, some buildings are implementing capital contributions or assessments at the time of sale. Always review the most recent reserve study and ask about pending assessments before closing.

New Development Closing Costs

Purchasing directly from a developer in Miami typically adds 1.5-2% to your closing costs compared to a resale. Buyers often pay costs that sellers would cover in a resale transaction.

Additional New Development Costs

• Documentary stamp tax (buyer pays): 0.6-1.05% in Miami-Dade
• Development fee: 1.25-1.75% of purchase price
• Working capital contribution: 2-3 months of HOA fees
• Utility connection fees: $500-$1,500

Pro tip: "Almost new" resale condos (1-3 years old) often provide excellent value—nearly new finishes without new development closing costs, and documentary stamp taxes paid by the seller rather than buyer.

Real-World Examples: Miami Closing Costs Calculated

Example 1: $1.5 Million Resale Condo in Miami Beach (Cash)

• Purchase price: $1,500,000
• Documentary stamp tax: $0 (seller pays on resale)
• Title insurance (owner's): $8,000
• Title search and closing: $1,000
• Attorney fees: $2,000
• HOA fees (estoppel, transfer, move-in): $1,000
• Recording fees: $300
• Total closing costs: $12,300 (0.8%)

Example 2: $2.5 Million Resale Condo in Brickell (Financed)

• Purchase price: $2,500,000
• Loan amount: $2,000,000 (80% LTV)
• Documentary stamp tax: $0 (seller pays on resale)
• Title insurance (owner's + lender's): $16,000
• Title search and closing: $1,200
• Intangible tax on mortgage (0.2%): $4,000
• Doc stamps on note ($0.35/$100): $7,000
• Loan origination (0.5%): $10,000
• Attorney fees: $2,500
• HOA fees: $1,200
• Appraisal, credit, recording: $1,500
• Total closing costs: $43,400 (1.7%)

Example 3: $5 Million New Development Condo in Surfside (Cash)

• Purchase price: $5,000,000
• Documentary stamp tax (buyer pays): $52,500 (1.05%)
• Development fee (1.5%): $75,000
• Title insurance (owner's): $27,000
• Title search and closing: $1,500
• Attorney fees: $4,000
• Working capital (3 months x $2,500): $7,500
• HOA/move-in fees: $2,000
• Recording fees: $500
• Total closing costs: $170,000 (3.4%)

Miami vs. NYC: Complete Closing Cost Comparison

Let's compare total closing costs for equivalent purchases in both markets.

Frequently Asked Questions

Do I need an attorney to buy a condo in Miami?

Legally, no. Unlike New York, Florida doesn't require attorney representation. However, we strongly recommend using one, especially for international buyers, new development purchases, or any transaction over $1 million. Attorney fees of $1,500-$3,000 are minimal insurance against potentially costly mistakes.

Who pays closing costs in Miami?

Both parties pay their own costs. Buyers pay title insurance (in Miami-Dade), lender fees, and their attorney. Sellers pay documentary stamp tax and their agent commission on resales. On new development, buyers typically pay additional costs including doc stamps and development fees.

Why is Miami-Dade documentary stamp tax different?

Miami-Dade County charges a lower base rate ($0.60 vs $0.70 per $100) but adds a $0.45 surtax on non-single-family properties. For condos, this results in a 1.05% rate—higher than other Florida counties.

Are Miami closing costs tax deductible?

Most closing costs are not directly deductible but can be added to your cost basis, reducing capital gains when you sell. Mortgage interest and property taxes paid at closing may be deductible if you itemize. Consult your tax advisor.

What about HOA special assessments?

Special assessments are not technically closing costs, but you should investigate them before purchasing. Florida's new condo safety laws are resulting in significant assessments in older buildings. Always review the reserve study and ask about pending or anticipated assessments.

Next Steps

Understanding closing costs helps you budget accurately for your Miami purchase. Remember that Miami's closing costs are significantly lower than NYC's—a major financial advantage for buyers considering both markets.

-> Miami Luxury Condo Buying Guide: manhattanmiami.com/miami-luxury-condo-buying-guide

-> Foreign Buyers Guide: manhattanmiami.com/resources/foreign-buyers-guide

-> Miami Neighborhoods Guide: manhattanmiami.com/miami-neighborhoods

-> Pre-Construction Guide: manhattanmiami.com/blog/miami/buying-pre-construction-condo-in-miami

-> NYC Closing Costs Guide (Comparison): manhattanmiami.com/nyc-closing-costs-guide

Manhattan Miami Real Estate

Anthony Guerriero, Licensed Real Estate Broker

Licensed in New York | Florida | California

manhattanmiami.com