“Closing costs” is often considered a vague and general term that generates quite a few questions from buyers and sellers. Different parties to a residential real estate deal may identify transaction costs in different ways, so it is very important to have an accurate and complete picture of what is involved in closing the sale of a home or condo in Florida and how much it will cost.

Closing, also called settlement, is the final step in a real estate transaction. At closing, the buyer (and mortgage lender when used) pays the money to the seller, the property is legally transferred from the seller to the buyer, various transaction fees and charges are paid, and the documents related to the sale and mortgage are recorded with the local county.

This phrase refers to charges and fees that buyers and sellers pay either out of pocket or as a debit from the settlement statement that are NOT included in the purchase price, deposit, down payment or mortgage loan amount.

As you read this article, keep in mind that whether a transaction-related cost is overtly called a Closing Cost or not, any charges or fees outside of the contract sale price are still additional money that the buyer or seller must pay.