Trending
Mr. Feichthaler:
I have a neighbor and I want to sell my home to him. I have read your column so I know I need to have a contract written and close with a reputable law firm or title company. I am saving the commission, but what other costs should I expect, if any?
-- Carol C.
Dear Carol:
That is great that you have a ready buyer. As noted in prior columns, Realtors can add good value in advising of current value, as well as finding a buyer at a higher price. Prices have in-creased dramatically over the past 6 months, so make sure you have a fair sales price before signing.
Every transfer of property for value is subject to documentary stamps in Florida. This is a transfer tax, for which the rate is 70 cents per $100 in value, or .7 % of the purchase price. This is typically paid for by the seller at closing. As an example, if your house sold for a price of $300,000, the documentary stamps payable upon recording the deed would be $2,100. One of the reasons we Floridians don't have a personal income tax is because of this transfer tax, which brought over $4 billion in revenue to the state in 2021.
The other significant cost is the issuance of an Owner's Policy of Title Insurance to the buyer. In Lee County, the seller customarily pays for this policy, which costs just over .5% of the sales price, or just over $1,500 in the example above. In other counties, like Collier County, the buyer typically pays for this. Like all contract provisions, the division of costs is always negotiable.
You will also have other smaller costs, including closing fees to the closing firm and title search, which should be no more than $700. There could be additional costs when selling a condominium or a property governed by a homeowners association.
Any costs of financing would be paid for by your buyer, unless you agree otherwise in the contract.
As with any property purchase or sale, give careful consideration to the terms of the contract to affirm you are getting the deal you expect.
Eric P. Feichthaler has lived in Cape Coral for over 35 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Museum of History, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.