Florida Seller Closing Costs: The Full Line-Item Picture for a Canadian Seller

Section 01Who pays what at a Florida closing

Florida has no statute that dictates who pays which closing cost. The default allocation comes from two sources: the FAR/BAR contract checkboxes and local county custom. The FAR/BAR Residential Contract has explicit checkboxes that assign the documentary stamp tax, the owner's title insurance, and the choice of closing agent. If those boxes are not actively negotiated, the contract falls back on long-standing county practice, and that practice differs sharply between Florida regions.

In a typical residential resale, the seller customarily pays the documentary stamp tax on the deed in every county. The seller also customarily pays the owner's title insurance premium in 44 of Florida's 67 counties, including Palm Beach, Hillsborough, Orange, Pinellas, and Lee. In a smaller group of counties, including Miami-Dade, Broward, Sarasota, and Collier, the buyer is the customary payor. Monroe County (the Florida Keys) splits internally: Marathon and the Middle Keys follow the seller-pay norm, the Upper Keys follow the buyer-pay norm, and Key West is mixed. The choice matters because in Florida the party who pays for the owner's policy customarily picks the closing agent, which gives that party effective control over the closing logistics.

Section 02The ten line items on a Florida seller's closing statement

The closing statement (form ALTA Settlement Statement, often called the HUD-1 by older practitioners) lists each cost as a separate line. The following ten items capture nearly every dollar a Canadian seller will see deducted from the gross sale price.

1. Real estate commission

The largest single line item is, in almost every case, the commission. Before the August 2024 changes triggered by the National Association of Realtors (NAR) class-action settlement (Burnett v. NAR), Florida sellers customarily paid a total commission of 5 to 6 percent of the sale price, with the listing brokerage and the buyer's brokerage each receiving roughly half. That figure was always negotiable in theory, and is now negotiable in practice as well. Since August 17, 2024, MLS rules across the United States, including the Stellar MLS that covers most of Florida, prohibit any reference to buyer-agent compensation in MLS listings. Buyer-agent fees must be agreed in a written buyer-broker agreement signed before any property tour, and any seller concession toward the buyer's agent must be documented separately, off-MLS.

In practice, most Florida sellers still offer to cover the buyer's agent in 2026, because doing so widens the buyer pool. The mechanics simply moved: instead of a posted MLS offer, the offer now appears as a credit in the purchase contract. The dedicated article Florida Real Estate Commission walks through how to negotiate the commission and how the post-NAR rules reshape the conversation.

2. Florida documentary stamp tax on the deed

The documentary stamp tax (DST) is a state excise tax on documents that transfer Florida real estate. Under Florida Statute section 201.02(1)(a), the rate on deeds outside Miami-Dade County is USD 0.70 per USD 100 of consideration, rounded up to the next USD 100. On a USD 400,000 sale outside Miami-Dade, that is USD 2,800. Inside Miami-Dade, single-family residences pay USD 0.60 per USD 100, and other property types (condominiums, multifamily, commercial) pay USD 0.60 plus a USD 0.45 discretionary surtax, for an effective rate of USD 1.05 per USD 100 on those non-SFR transfers. The seller customarily pays the DST on the deed in every Florida county. The deep-dive article Florida Documentary Stamp Tax §201.02 covers exemptions, the Miami-Dade calculation, and how to verify the line on the closing disclosure.

3. Owner's title insurance premium

Florida is a "promulgated rate" state. Under Rule 69O-186.003 of the Florida Administrative Code and section 627.7825 of the Florida Statutes, the premium for an owner's title insurance policy is set by the Florida Office of Insurance Regulation and is identical at every title company in the state. The current basic premium tier for an original (non-reissue) owner's policy is USD 5.75 per USD 1,000 of price up to USD 100,000, then USD 5.00 per USD 1,000 from USD 100,000 to USD 1,000,000, with lower tiers above USD 1 million.

That mechanical rule means a USD 400,000 owner's policy costs USD 575 (first USD 100,000) plus USD 1,500 (next USD 300,000) for a total of USD 2,075, which is roughly 0.52 percent of price. A USD 1,000,000 policy costs USD 5,075. Reissue rates apply when a prior owner's policy on the same property was issued recently (typically within the last three years) and can reduce the premium materially. In counties where the seller customarily pays the owner's policy, this premium is the second-largest closing-cost line after the commission. The dedicated article Florida Seller's Title Insurance walks through the calculation in detail and the reissue credit.

4. Title search and examination fees

The promulgated premium covers only the policy itself. The title search (the work of pulling the chain of title from the county recorder), the title examination (the lawyer's review), and the binder are separately billed market-priced fees. Together they typically run USD 200 to USD 500 in a residential closing. Florida law requires that these service fees be itemized separately from the promulgated premium on the settlement statement, so the buyer or seller can verify they were not bundled.

5. Closing or settlement fee

The title company or closing attorney charges a settlement fee for actually conducting the closing: holding escrow, preparing the closing disclosure, recording documents, disbursing funds. This fee is also market-priced (not promulgated) and typically runs USD 350 to USD 700 in a residential transaction. In counties where the seller selects the closing agent (the seller-pays-title norm), the seller's listing agent often has a standing relationship with one or two title companies, and the rate is predictable.

6. HOA estoppel letter and association fees

If the property is in a homeowners or condominium association, the seller must obtain an "estoppel letter" from the association certifying that all dues, assessments, and fees are current. The cost is statutorily capped at USD 299 for a routine letter under Florida Statutes section 720.30851 (HOA) and section 718.116(8) (condominium), with higher fees permitted for delinquent accounts or expedited service. The seller customarily pays this charge. The dedicated article Estoppel Letter: HOA and Condo Sales covers what the estoppel must disclose, how to challenge errors, and the timing rules.

7. Property tax prorations

Florida real property taxes are billed in arrears for the calendar year, with the bill issued on November 1 and discounts available for early payment. At closing, the seller is debited for the portion of the year already elapsed, calculated on a per-day basis. On a USD 400,000 home with an annual tax bill of USD 6,500 and a closing on May 15, the seller would be debited approximately USD 2,400 for January 1 to May 14. The buyer then receives the November tax bill and pays the full year. The dedicated article Closing Prorations: Taxes, HOA, Utilities covers the daily calculation and the November discount math.

8. Recording fees, courier, wire fees

The county clerk charges a recording fee for each document filed: typically USD 10 for the first page of a deed and USD 8.50 for each additional page, plus USD 10 per page for the satisfaction of mortgage and any other recordable instrument. Wire fees (USD 25 to USD 50 per outgoing wire), courier and overnight fees (USD 30 to USD 75), and notary fees if any are also billed at the line. These items are individually small but accumulate to USD 150 to USD 400 in total.

9. Mortgage payoff and prepayment penalty

If the seller has an outstanding US mortgage, the lender's payoff amount (principal balance plus accrued interest to the funding date plus any per-diem charges) is paid out of closing proceeds. US conforming residential mortgages issued after January 10, 2014 generally do not carry prepayment penalties under federal Qualified Mortgage rules, but older mortgages, foreign-national mortgages held by some Florida banks, and commercial mortgages may include yield-maintenance or step-down prepayment provisions. Canadian sellers carrying a US mortgage should request a written payoff statement at least two weeks before closing.

10. FIRPTA withholding (this is the line that surprises Canadian sellers)

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) requires the buyer to withhold 15 percent of the gross sale price (the "amount realized," not the gain) when the seller is a "foreign person" under US tax law (Internal Revenue Code section 1445). Almost every Canadian who is not a US green card holder is a foreign person. The buyer is the legal withholding agent. In practice, the closing agent (title company) calculates the withholding, deducts it from the seller's proceeds, and remits it to the IRS using Form 8288 within 20 days of closing. Two reduced rates apply when the buyer signs a personal-residence affidavit: 0 percent if the price is USD 300,000 or less and the buyer will use the property as a residence, and 10 percent if the price is between USD 300,001 and USD 1,000,000 and the buyer will use it as a residence. Above USD 1,000,000, the rate is always 15 percent regardless of buyer use.

This is a temporary withholding, not a final tax. The Canadian seller files a US non-resident return (Form 1040-NR) the following year, computes the actual capital gains tax under the Canada-US Treaty, and either receives a refund of the difference or pays additional tax. To shorten the cash-flow gap, the seller can apply for a withholding certificate on Form 8288-B before or at closing, which can release the withholding to actual estimated tax due. The full FIRPTA mechanism is documented at FIRPTA explained: the 15% withholding when a Canadian sells Florida real estate, the USD 300,000 personal-residence exception, and Form 8288-B FIRPTA early refund.

Section 03Canada to Florida: a side-by-side comparison of seller closing costs

The Canadian (Quebec reference) and Florida sale processes share the same logical structure (commission, transfer tax, legal/title work, prorations, mortgage payoff) but differ in who pays each item, which level of government collects the tax, and how the closing is mechanically conducted. The following table is a Quebec-vs-Florida reference. Equivalent comparisons for Ontario, British Columbia, Alberta, and other provinces are forthcoming.

The decisive Canada-to-Florida deltas to internalize: FIRPTA exists in the US and has no Canadian analogue, the transfer tax is paid by opposite parties in the two systems (seller in Florida, buyer in Quebec), and Florida closings do not require a notary because the title-company-plus-attorney-review model substitutes for civil-law notarial oversight.

Section 04Worked example: Canadian seller, Broward County condominium, USD 425,000

Marie, a Quebec resident with no US green card, sells a Pompano Beach condominium for USD 425,000 in June 2026. Mortgage paid off three years prior. Property tax bill USD 4,200 per year. Annual HOA dues USD 6,000. Buyer is a US resident who will not occupy the unit (investment purchase). All numbers in USD.

Marie then files Form 1040-NR for tax year 2026 in early 2027. Suppose her actual long-term capital gain is USD 120,000 with a US federal tax of USD 18,000 (15 percent rate on the gain). She receives a refund of USD 45,750 from the IRS once the return is processed (typically 6 to 12 months after filing). The withholding was a temporary cash drain, not a permanent cost.

Section 05Common mistakes

1. Treating FIRPTA withholding as the final tax. The 15 percent is a deposit against the actual gain. The actual federal tax on the gain is computed when the seller files Form 1040-NR. Apply for Form 8288-B before closing if the gain is small relative to the gross price.
2. Assuming the seller pays the owner's title insurance. True in 44 of 67 counties. False in Miami-Dade, Broward, Sarasota, and Collier. Check the FAR/BAR contract Section 9 checkboxes, not the listing-agent assumption.
3. Forgetting the Miami-Dade surtax. A non-SFR property transferred in Miami-Dade pays USD 1.05 per USD 100, not USD 0.70. On a USD 600,000 condominium, that is USD 6,300 instead of USD 4,200. The dedicated article on the documentary stamp tax explains the surtax structure.
4. Quoting the title-insurance premium as 0.21 percent of price. That figure is not the Florida promulgated rate. The actual rate is USD 5.75 per USD 1,000 first USD 100K, then USD 5.00 per USD 1,000, which is approximately 0.5 to 0.6 percent for a typical residential property. Always compute against the regulated tier table.
5. Signing a listing agreement without negotiating the commission. Post-NAR-settlement, every percentage point is on the table. A Canadian seller without a Florida network should ask at least three brokers to bid the listing.
6. Ignoring the HOA estoppel timeline. The statute caps the fee, but the response time runs up to ten business days. A delayed estoppel letter pushes back the closing date and risks per-diem mortgage interest costs.
7. Repatriating funds at the closing-day spot rate without a plan. A USD-to-CAD conversion of USD 330,000 at a retail bank can cost 1.5 to 2.5 percent in spread (USD 5,000 to USD 8,000). The dedicated article Repatriating Funds After Sale: USD to CAD covers FX brokers and timing.

Section 06Actionable checklist for a Canadian seller

1. Sixty days before listing: pull the deed and the prior closing statement to confirm purchase basis (for the eventual capital gains computation).
2. Forty-five days before listing: interview at least two listing brokers, request written commission proposals.
3. At listing: confirm with the broker which county custom applies for owner's title insurance, and whether the FAR/BAR Section 9 checkboxes will follow custom or be negotiated.
4. Within seven days of contract acceptance: order the HOA estoppel letter (if applicable). Confirm whether the buyer will use the property as a residence (FIRPTA rate determination).
5. Twenty days before closing: obtain a written payoff statement from any US mortgage lender. If the gain on sale is small relative to the gross price, retain a US cross-border tax professional and apply for Form 8288-B.
6. Ten days before closing: review the draft closing disclosure (settlement statement). Verify each of the ten line items above. Confirm the documentary stamp tax math and the title-insurance premium against the promulgated table.
7. Closing day: confirm the FIRPTA withholding amount on the closing disclosure, and that the closing agent will file Form 8288 within 20 days.
8. Ninety days post-closing: confirm the closing agent has filed Form 8288 and that the IRS has issued the stamped Form 8288-A confirmation. That stamped copy is mandatory to claim the withholding as a credit on Form 1040-NR.
9. By April 15 of the following year: file Form 1040-NR with the stamped Form 8288-A attached, plus the Canadian T1 reporting the foreign capital gain under the Canada-US Treaty Article XIII.

Section 07FAQ

Are real estate commissions in Florida really negotiable in 2026? Yes. The NAR settlement of August 17, 2024 made the negotiability explicit and legally documented. Listing agreements must now include a "conspicuous statement that broker fees and commissions are fully negotiable and not set by law." The 5 to 6 percent figure is a custom, not a rule.

Can a Canadian seller be fully exempt from FIRPTA? Only in narrow cases: the buyer signs a personal-residence affidavit AND the price is USD 300,000 or less (0 percent rate), or the seller obtains an IRS withholding certificate on Form 8288-B that reduces the rate to the actual estimated tax. Most Florida sales above USD 300,000 to non-resident-using buyers are subject to the full 15 percent.

Does Florida have a state-level capital gains tax on the sale? No. Florida has no state personal income tax. The seller's US tax exposure is federal only (Form 1040-NR), under IRC §1, computed on the actual gain. Florida-sourced gain therefore avoids the second layer that California, New York, or Ontario sellers would face on their own home transactions.

Does the Canadian seller still pay Canadian capital gains tax on the same sale? Yes. Canada taxes its residents on worldwide income. The Canada-US Treaty (Article XIII and Article XXIV) avoids double taxation by allowing a foreign tax credit in Canada for US federal tax paid. The dedicated articles Canada-US Treaty Article XIII: Real Estate Capital Gains and Canadian Capital Gains: 50% Inclusion Rate explain the mechanics.

What is the practical closing-day cash result for a Canadian seller? On a typical USD 400,000 to USD 500,000 sale outside Miami-Dade, the seller receives roughly 76 to 78 percent of the gross price in cash at closing, with the balance composed of commission, documentary stamp tax, title costs, prorations, and FIRPTA withholding. The FIRPTA portion is recoverable via the next-year tax return.

Editorial team

CanadaFlorida Editorial Team. Research drawn from primary public sources cited at the bottom of every guide: U.S. and Florida statutes, U.S. and Canadian federal agencies, official Florida county and state authorities, and Canadian provincial bodies where applicable. Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed below. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.

Essential disclaimer

Educational purpose only. This document is reference information. It is not legal, tax, accounting, real estate, immigration, medical, or financial advice and does not create a client-professional relationship. Before any concrete decision, consult a licensed professional in the relevant jurisdiction: a Florida-licensed attorney, a cross-border tax professional, a Florida-licensed insurance broker, or your physician, depending on the question at hand. Treat this content as a research starting point, not as professional advice. A consultation with a licensed professional in the relevant jurisdiction is indispensable before any decision.