Wondering why your cash to close looks bigger than your down payment? In Palm Beach County, closing costs stack up on both the buyer and seller sides, and condos or townhomes in Delray Beach often add HOA items that catch people off guard. You want to budget confidently and avoid last‑minute surprises. Here, you’ll learn what closing costs include, who typically pays what, and realistic ranges for Delray Beach condo and townhome deals, with Pineapple Grove in mind. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaid items you and the other party pay to complete the sale. They are separate from your down payment.
Key categories
- Title and escrow fees: title search and exam, closing or settlement fee, and title insurance (owner and lender policies). Premiums follow Florida’s regulated rate schedule, so the cost depends on price.
- Lender fees: origination, underwriting, processing, credit report, appraisal, flood certification, and any discount points.
- Prepaids and escrows: prepaid interest from funding to month end, first-year homeowner’s insurance, prorated property taxes, and initial escrow deposits for taxes and insurance.
- Third-party fees: survey if required, inspections, HOA estoppel and transfer fees, attorney fees if used, and recording fees.
- Government taxes: recording fees and Florida documentary stamp taxes and the intangible tax on new mortgages. Responsibility for these depends on local custom and your contract.
Who typically pays in Palm Beach County
- Seller: real estate commission (usually the largest seller cost), often the owner’s title insurance policy by local custom, plus seller-side payoffs and curing costs. Sellers may also cover documentary stamps and HOA estoppel or transfer demands if assigned in the contract.
- Buyer: lender-related fees, appraisal and inspections, lender’s title policy, recording fees for the mortgage, intangible tax on the new mortgage, homeowner’s insurance, and escrow deposits for taxes and insurance. Taxes and HOA dues are prorated at closing.
- Negotiable: who pays the owner’s title policy, specific HOA fees, seller credits toward buyer costs, and who pays documentary stamp or transfer taxes. Always confirm in your signed contract and your title company’s preliminary quote.
Typical ranges in Delray Beach
Every deal is unique, but these guidelines reflect common Palm Beach County practice for condos and townhomes.
Buyer cost overview
- Expected range: about 2% to 4% of the purchase price, not including your down payment.
- Lower end: cash purchases or minimal third-party reports.
- Higher end: when you pay discount points, multiple inspections, and larger prepaid escrows.
Seller cost overview
- Expected range: about 6% to 9% of the purchase price. The commission (commonly around 5% to 6% in total) drives most of this number.
- Higher end: when the seller pays the owner’s title policy and other fees per local custom or negotiation.
Sample scenarios (approximate)
These are rounded, illustrative examples. Always ask your title company and, if you are financing, your lender for an exact estimate.
Modest condo at $300,000
- Buyer closing costs: about $6,000 to $12,000 (2% to 4%). Includes lender fees, appraisal and inspections, lender’s title policy, prepaid interest, insurance, and tax escrows.
- Seller closing costs: about $18,000 to $27,000 (6% to 9%). Mostly commission of roughly $15,000 to $18,000, plus any owner’s title policy, prorations, and payoff of liens or HOA assessments.
Mid-range townhome at $450,000
- Buyer closing costs: about $9,000 to $18,000.
- Seller closing costs: about $27,000 to $40,500.
Condo and HOA fees to expect
Condos and townhomes in Delray Beach often include association requirements that add fees and timing steps.
Estoppel letters explained
An estoppel letter confirms the seller’s standing with the association. It shows current assessments, unpaid dues, and any violations, and it is required to close on a Florida condo. Fees commonly range from about $100 to $400 and may be paid by buyer, seller, or split based on the contract and association rules.
Transfer and application fees
Associations may charge a transfer fee and a move-in or move-out fee. These are often modest, about $50 to $300, but some buildings charge more or add rush fees. Confirm the amount and who pays in your contract and the HOA’s resale package.
Special assessments and reserves
Older South Florida buildings can have pending or planned capital projects. The estoppel and resale package should surface these. Assessments are typically seller liabilities that can be prorated, but confirm terms in writing. Review reserves, budgets, and any planned work early.
Downtown Delray and Pineapple Grove notes
Condos near downtown often have higher HOA dues, which can increase the initial escrow deposit your lender requires. Some lenders apply stricter condo approval criteria for certain buildings. Start HOA document requests early to avoid delays.
Taxes and state fees to verify
Florida has several state-specific items that impact your bottom line.
Documentary stamps and transfer taxes
Florida assesses documentary stamp taxes on deeds and, in some situations, on promissory notes. Who pays can depend on local custom and what your contract says. Confirm responsibility and amounts with your title company.
Intangible tax on mortgages
Florida imposes an intangible tax on new mortgages recorded in the state. Your lender or title company will calculate this based on the loan amount and include it on your Loan Estimate and Closing Disclosure.
Property tax prorations
Property taxes are prorated at closing. Sellers typically pay through the day of closing, and buyers pay from the day after closing forward, subject to your contract.
Lender fees vs. title fees
Knowing the difference helps you review your Loan Estimate and Closing Disclosure with confidence.
What lender fees cover
- Origination or application and processing
- Underwriting
- Credit report
- Appraisal
- Flood certification
- Discount points if chosen
- Lender’s title insurance policy
- Prepaids: initial escrow deposits for taxes and insurance, plus prepaid interest from funding to month end
Your lender must provide a Loan Estimate within three business days of application. Compare it to your Closing Disclosure before signing.
What title fees cover
- Title search and examination
- Closing or settlement fee
- Document preparation and curative work
- Title insurance: owner’s policy and lender’s policy
- Recording of the deed and prorations
In many Palm Beach County deals, sellers pay the owner’s title policy, but this is negotiable. Confirm who pays which items in your contract and your preliminary title quote.
What to confirm and when
- With your lender: verify origination charges, escrow requirements, prepaid interest, and intangible tax on the loan amount. Request a clear comparison of the Loan Estimate and the Closing Disclosure.
- With your title company: request a preliminary title commitment and an itemized closing estimate. Ask who pays the owner’s policy, documentary stamps, and HOA estoppel or transfer fees.
Quick checklist to stay on track
- Request a preliminary title commitment and an itemized estimate. Sellers should also request a seller’s net sheet.
- From your lender, review the Loan Estimate and later the Closing Disclosure line by line.
- Order the HOA estoppel and resale package early. Confirm fees, pending assessments, reserves, rental rules, and required transfer forms.
- Verify contract terms for who pays the owner’s title policy, documentary stamps, and HOA transfer fees.
- Confirm wiring instructions directly by phone using known numbers. Wire fraud is real. Never rely on email-only instructions.
- Ask title to obtain final payoff demands for any seller mortgages or condo liens as soon as possible.
Cost cheat sheet
Use these common ranges to frame your budget. Your actual numbers will vary based on your price point, loan type, and contract.
One-time buyer costs
- Loan origination, underwriting, and processing
- Appraisal: about $450 to $800
- Home inspection: about $300 to $600
- Termite or WDO inspection: about $50 to $150
- Lender’s title insurance policy
- Credit report: about $25 to $50
- Flood certification: about $10 to $30
- Survey if required: about $300 to $800
- Recording fees for the mortgage: typically about $50 to $300 total with deed and mortgage
- Prepaids and escrow deposits: often 1 to 3 months of taxes and insurance, plus prepaid interest to month end
One-time seller costs
- Real estate commission: commonly around 5% to 6% of the sale price
- Owner’s title insurance policy if assigned to seller by local custom or contract
- Documentary stamps or transfer taxes if assigned to seller by contract
- HOA estoppel and transfer demands if assigned to seller
- Payoff of mortgages or liens and any outstanding assessments
- Seller concessions if negotiated
Title and escrow fee notes
- Title search, commitment, and closing fee: often about $200 to $600 depending on complexity
- Title insurance premiums: based on Florida’s regulated schedule. As a rough guide, the owner’s policy is a fraction of a percent up to around 1% of price. Ask title for a quote.
- Courier or wire fee: about $25 to $75
Avoid delays and surprises
- Start HOA documents early. Estoppel letters and resale packages can take time, and rush fees may apply.
- Ask early about assessments. For older buildings or those planning capital projects, confirm whether assessments are pending and how they will be handled.
- Align lender and title timelines. Share HOA requirements with your lender in case condo approval is needed.
- Protect your funds. Verify wiring instructions by phone with the title company using a trusted number. Do not rely on emailed changes.
Get a tailored estimate
Exact closing costs depend on your contract, loan type, condo association, and price point. Ask your lender for a Loan Estimate and your title company for a preliminary closing statement so you can compare line items and plan your cash to close with confidence. If you want help reviewing estimates or negotiating who pays what, connect with Jeffrey Creegan for local guidance in Delray Beach and across Palm Beach County.
FAQs
How much are buyer closing costs in Delray Beach condos?
- Buyers commonly see about 2% to 4% of the purchase price in closing costs, not including the down payment. Your exact total depends on loan type, escrows, and inspections.
How much are seller closing costs for Palm Beach County?
- Sellers often pay about 6% to 9% of the sale price, largely driven by a total commission around 5% to 6%, plus any title policy or transfer items assigned by contract.
Who pays for the owner’s title insurance policy in South Florida?
- In many Palm Beach County deals, sellers pay the owner’s title policy, but it is negotiable. Confirm responsibility in your contract and title quote.
What is a condo estoppel letter in Florida?
- It is a statement from the association showing dues status, assessments, and violations. Expect about $100 to $400, with payment responsibility set by the contract or HOA rules.
What is Florida’s intangible tax on mortgages?
- It is a state tax on new mortgages recorded in Florida, calculated on the loan amount. Your lender or title company will include it in your estimate and closing documents.
Can a seller help pay my buyer closing costs?
- Yes. Seller credits are negotiable and subject to loan program limits. Discuss the amount and how it is applied with your lender and agent before writing your offer.
What documents show my final cash to close?
- For financed purchases, your lender’s Loan Estimate and Closing Disclosure detail lender fees, prepaids, and cash to close. Sellers can request a preliminary closing statement to see net proceeds.