Key takeaways
- In Miami-Dade, sellers customarily pay the Documentary Stamp tax on the deed: $0.60 per $100 for a single-family home and $1.05 per $100 for other property types.
- Other common seller costs are the mortgage payoff, commissions, prorated property taxes, association estoppels and dues, and clearing municipal liens or open permits.
- Foreign sellers are generally subject to 15% FIRPTA withholding at closing, with reduced rates or exemptions in some cases.
When you sell a home in Miami, your proceeds are the sale price minus a set of costs that appear on your settlement statement. Here’s what those costs usually are in Miami-Dade, line by line, and how to estimate them.
1. Documentary Stamp tax on the deed
Florida taxes the transfer of real estate through Documentary Stamps on the deed, and in Miami-Dade the seller customarily pays them. For a single-family residence, the rate is $0.60 per $100 of the price. For other property types, such as condominiums held as investments, commercial property or vacant land, a $0.45 surtax applies, for a total of $1.05 per $100.
2. Mortgage payoff
If you have a mortgage, it’s paid off from your proceeds. We request a payoff letter from your lender showing the principal balance, interest through the payoff date and any fees. Home equity lines must be paid off and closed, too.
3. Real estate commissions
Commissions are set by your listing agreement and any agreement to compensate the buyer’s agent. They are negotiable and appear on the settlement statement exactly as agreed.
4. Prorated property taxes
Florida property taxes are paid in arrears, so at closing you credit the buyer for the taxes from January 1 through the day before closing. If the current year’s bill isn’t out yet, the proration is usually based on last year’s taxes with the maximum early-payment discount.
5. Association estoppels and dues
If the property is in a condominium or HOA, the association issues an estoppel certificate showing what’s owed. Any unpaid assessments are paid from your proceeds, and the estoppel fee is often charged to the seller.
6. Municipal lien search and title clearing
A municipal lien search reveals open or expired permits, code violations and utility liens. Clearing them, such as closing an old permit or paying a code fine, is usually the seller’s responsibility under the contract.
7. FIRPTA withholding for foreign sellers
If the seller is a foreign person for U.S. tax purposes, federal law generally requires the buyer to withhold 15% of the amount realized at closing and send it to the IRS. Reduced rates or exemptions apply in some cases, for example when the price is $300,000 or less and the buyer will live in the home. Foreign sellers should speak with a tax advisor early; we coordinate the withholding at closing.
An example
A Miami-Dade single-family home sells for $650,000, with a $300,000 mortgage balance:
| Item | Amount |
|---|---|
| Sale price | $650,000.00 |
| Doc Stamps on deed ($0.60 per $100) | −$3,900.00 |
| Mortgage payoff (example) | −$300,000.00 |
| Commissions | Per your agreements |
| Prorated taxes, estoppel and lien search | Varies by property |
Your settlement statement will show the exact figures before you sign anything.
Know your net before you list
Advance Partners Title prepares quotes at a moment’s notice, including Documentary Stamps and recording fees. Request a quote or call 305-273-6510 to estimate your net proceeds.
Frequently asked questions
How much are Documentary Stamps on the deed for a Miami-Dade seller?
For a single-family residence the rate is $0.60 per $100 of the price, so a $650,000 sale owes $3,900. Other property types, such as investment condos, commercial property and vacant land, pay $1.05 per $100, which includes a $0.45 surtax.
How are property taxes prorated when selling a home in Florida?
Florida property taxes are paid in arrears, so the seller credits the buyer for taxes from January 1 through the day before closing. If the current bill isn't out yet, the proration usually uses last year's taxes with the maximum early-payment discount.
What is FIRPTA withholding?
If the seller is a foreign person for U.S. tax purposes, federal law generally requires the buyer to withhold 15% of the amount realized and send it to the IRS. Reduced rates or exemptions apply in some cases, for example when the price is $300,000 or less and the buyer will live in the home.
Who pays the HOA or condo estoppel fee in Miami?
The estoppel fee is often charged to the seller, and any unpaid association assessments shown on the estoppel certificate are paid from the seller's proceeds.
This article is general informationEvery transaction is different. For advice on your situation, talk to our team or your attorney.