February 18, 2026

Florida Transaction Guide: How Closings Work

Q: Who pays for title insurance in Florida?

This is where Florida gets complicated. In most of the state, the seller pays for the owner's title insurance policy. However, in Miami-Dade, Broward, Sarasota, and Collier counties, the buyer customarily pays for the owner's title policy. This catches out-of-state investors off guard — always confirm the local custom before estimating closing costs on a Florida deal.

Q: How long is the inspection period in Florida?

The standard inspection period in Florida residential contracts (FAR/BAR contract) is 15 days. During this time, the buyer can conduct inspections and terminate the contract if unsatisfied. This is longer than the 10-day period common in many other states. Investment deals typically waive the inspection period with non-refundable earnest money from day one.

Q: How long does a closing take in Florida?

Retail financed closings in Florida typically take 30-45 days. Cash investor deals can close in 7-14 days if the title is clean. Florida title companies in major markets like Miami, Orlando, Tampa, and Jacksonville handle high volumes of investor transactions and are generally efficient. HOA and condo association estoppel letters can add 10-15 days to the timeline.

Florida is the largest wholesale real estate market in the country and operates as a title company state with some important county-level variations that trip up out-of-state investors. The documentary stamp tax on deeds is a meaningful cost. Who pays for title insurance changes depending on which county you are in. And while Florida has no wholesale-specific statute, the sheer volume of wholesale activity in the state means title companies and investors are highly experienced with assignment and double close structures. If you are doing deals in Florida — or even one deal — understanding the county-by-county nuances is what separates professionals from beginners.

This guide covers how closings work for both retail and investment transactions. For Florida-specific wholesaling compliance considerations, see our Florida compliance guide.

How Closings Work in Florida

Florida is a title company state. Title companies (also called closing agents or settlement companies) handle the title search, issue title commitments, prepare closing documents, hold escrow funds, coordinate signings, and record deeds. No attorney is required at the closing table, though many buyers and sellers choose to have one present — and some title companies in Florida are attorney-owned or have in-house attorneys who supervise closings.

The standard process: the title company opens a file, orders a title search (typically through a title plant or abstracting service), and issues a title commitment listing the conditions for insurance and any Schedule B exceptions. The closing agent prepares the settlement statement (ALTA or HUD-1), coordinates document review with the lender and realtors (if applicable), and schedules the closing.

Florida closings typically take place at the title company's office. Both parties sign at the same appointment in most transactions, though separate closings, mail-away packages, and remote online notarization (RON) are all available and common. Florida was an early adopter of RON, and many title companies offer fully remote closings for out-of-state investors.

After signing, the title company records the deed at the county comptroller's office (in most counties), disburses funds, and issues the title insurance policies. Recording times vary by county — large counties like Miami-Dade, Broward, and Orange (Orlando) have electronic recording and process quickly. Smaller rural counties may take longer.

The Florida Association of Realtors (FAR) and The Florida Bar publish the standard residential contract forms used in most transactions. The FAR/BAR "As-Is" contract is particularly common for investment deals, as it eliminates repair obligations and places the property condition burden on the buyer.

Termination Rights and Due Diligence

Retail / Owner-Occupant Deals

Florida uses an inspection period as the primary buyer due diligence mechanism. The standard FAR/BAR residential contract includes an inspection period of 15 days — longer than the 10-day period common in many other states. During this period, the buyer can conduct inspections (home, pest, roof, sewer, mold, wind mitigation, four-point) and decide how to proceed.

If the buyer is not satisfied with the inspection results, they can request repairs, negotiate a credit, or terminate the contract. If the buyer terminates within the inspection period, the earnest money is returned. The Florida inspection contingency is tied to the inspection findings — it is not an unrestricted termination right like the Texas option period or Georgia due diligence period.

The FAR/BAR "As-Is" contract variant is commonly used even in retail transactions. Under the as-is contract, the seller makes no representations about property condition, but the buyer still has an inspection period during which they can terminate for any reason. The as-is language means the seller has no obligation to make repairs — the buyer's remedy is to terminate, not to demand fixes.

Financed buyers have a financing contingency and appraisal contingency. Florida's insurance market also creates a unique dynamic: securing homeowners insurance (particularly wind coverage) can be difficult and expensive, and some contracts include an insurance contingency allowing the buyer to terminate if they cannot obtain acceptable coverage.

Investment / Wholesale Deals

Off-market investment deals in Florida follow the national pattern: no inspection period, non-refundable earnest money from day one, as-is condition. The FAR/BAR As-Is contract is the standard form for these transactions because it already eliminates repair obligations — the key modification for investment deals is removing or shortening the inspection period and making the deposit non-refundable.

Florida's investor market is the most active in the country. South Florida (Miami-Dade, Broward, Palm Beach), Central Florida (Orlando, Tampa), and Jacksonville all have large, experienced investor communities. Title companies in these markets process wholesale transactions daily and are familiar with every deal structure. The volume and experience in Florida mean fewer surprises at the closing table compared to less active markets.

On the buy side, wholesalers may keep the inspection period in their contract with the seller as a safety valve, typically 14-21 days. This gives them time to market the deal and find a buyer before their deposit goes hard.

Earnest Money

Retail Deals

Earnest money on retail transactions in Florida is typically 1-3% of the purchase price. Florida's market is competitive, particularly in South Florida and the Tampa/Orlando corridor, so earnest money amounts tend to be on the higher end (2-3%) in strong seller's markets. On a $400,000 home, expect $4,000 to $12,000 in earnest money.

The earnest money is deposited with the title company or listing broker's escrow account within the timeframe specified in the contract (usually 3 business days of acceptance under the FAR/BAR contract). The deposit is held in escrow until closing, at which point it is credited toward the purchase price.

If the buyer terminates within the inspection period, the earnest money is returned. After the inspection period, the deposit is at risk. Florida has specific escrow dispute procedures — if the buyer and seller disagree about who is entitled to the earnest money, the escrow holder may interplead the funds (deposit them with the court) and let a judge decide.

Investment and Wholesale Deals

On the buy side, wholesalers in Florida typically deposit $500 to $2,500 in earnest money with the title company. Florida's competitive market and high deal volume mean that some sellers and listing agents expect higher deposits even from investors.

On the sell side, end buyers put up $2,000 to $10,000 in non-refundable earnest money. The higher end of this range reflects the higher price points in South Florida. The deposit is at risk from day one. Title companies hold the deposit in most transactions.

In Florida's wholesale community, some wholesalers hold the end buyer's deposit directly. This is more common in Florida than in other states due to the volume of wholesale transactions and the established relationships between repeat players. However, this practice carries risk, and disputes over directly-held deposits are a source of litigation. Best practice is to use the title company as a neutral escrow holder. See our earnest money in wholesale deals guide for more.

Who Pays for What

Retail Transaction Customs

Owner's title policy: This is the most important county-specific variation in Florida. In most of the state, the seller pays for the owner's title policy. However, in Miami-Dade, Broward, Sarasota, and Collier counties, the buyer customarily pays. This is not a minor difference — on a $400,000 property, the owner's title policy can cost $2,000-$3,000+. If you are used to the seller paying (as in most of the state) and you buy in Broward County, you have an unexpected closing cost. Always confirm the local custom before estimating your numbers.
Lender's title policy: Buyer pays (if financing).
Documentary stamp tax: Florida charges doc stamps on deeds at $0.70 per $100 of consideration ($7.00 per $1,000). On a $300,000 property, that is $2,100. Miami-Dade County adds a county surtax of $0.45 per $100 on top of the state rate for a combined rate of $1.15 per $100 ($11.50 per $1,000). The seller customarily pays the doc stamps on the deed.
Documentary stamps on notes/mortgages: $0.35 per $100 on the mortgage note. The buyer pays this (since the buyer is taking out the mortgage). Cash buyers avoid this cost.
Intangibles tax on mortgages: $2.00 per $1,000 of the new mortgage amount. Paid by the buyer. On a $240,000 mortgage, that is $480. Cash buyers avoid this.
Recording fees: Charged by the county comptroller. Fees are modest — typically $10 per page for the first page and $8.50 for each additional page.
Closing fee: Title company settlement fee, typically $300-$700. Usually split between buyer and seller.
Agent commissions: Seller pays (5-6% total customary).
Tax prorations: Florida property taxes are prorated to the date of closing. Taxes in Florida are paid in arrears, so the seller owes a credit to the buyer. Florida offers a discount for early property tax payment (up to 4% if paid in November), which can affect the proration calculation.
HOA/condo estoppel: If the property is in an HOA or condo association, an estoppel letter is required. This confirms the current balance, any assessments, and any violations. The cost of the estoppel letter (typically $100-$500) is usually paid by the seller.

Investment Transaction Customs

No agent commissions on off-market deals. Documentary stamp tax applies to all deed transfers — there is no exemption for investment transactions. The county-specific title insurance custom still applies (buyer pays in Miami-Dade and Broward; seller pays in most other counties). Cash investors avoid the mortgage documentary stamps and intangibles tax, which is a significant savings.

Florida's closing costs are among the highest of the title company states due to the documentary stamp tax. On a $300,000 property, the doc stamps alone are $2,100 (or $3,450 in Miami-Dade). This materially affects deal economics, especially on double closes where you pay the tax twice. For a cost comparison, see our closing costs by state guide.

Title Work and Insurance

Florida title companies conduct the title search through title plants or abstracting services. The search typically goes back at least 30 years. The title commitment lists the conditions for insurance and any Schedule B exceptions.

Owner's title policy: Protects the buyer against title defects. Who pays depends on the county (seller in most of the state; buyer in Miami-Dade, Broward, Sarasota, and Collier).

Lender's title policy: Required by the mortgage lender. The buyer always pays.

Title insurance rates: Florida title insurance rates are promulgated (set by the state). The rate is the same regardless of which title company you use, similar to Texas. This means you shop for service and efficiency, not rate.

Common title issues in Florida: HOA and condo association liens are extremely common — Florida has more HOA-governed properties than any other state. Delinquent assessments, special assessments, and violations all create liens that must be cleared. Property tax liens with accumulated interest and penalties are frequent on distressed properties. Code enforcement liens from municipalities (especially in Miami-Dade and Broward) can be substantial. Unreleased mortgages are common on properties that went through the 2008-2012 foreclosure crisis. Lis pendens (pending litigation notices) on properties with unresolved legal disputes cloud title and must be resolved before insurance can be issued. Foreign ownership issues (FIRPTA withholding requirements) arise frequently in South Florida due to the large international buyer and seller population.

For more on title insurance, see our title insurance guide.

Wholesale-Specific Closing Notes

No wholesale-specific statute: As of early 2026, Florida does not have a state law specifically regulating wholesale real estate transactions like Texas SB 1577 or Oklahoma SB 1075. Contract assignments are governed by general contract law principles. This means there are no state-mandated disclosure forms or specific compliance requirements unique to wholesaling. However, general principles of transparency, fraud prevention, and good faith still apply. For Florida-specific compliance considerations, see our Florida compliance guide.

Assignment deals: Contract assignments are common and well-understood in Florida. The assignment fee appears on the settlement statement. Florida title companies in major markets process assignment closings daily. The lack of a wholesale-specific statute means fewer compliance hoops, but it also means the rules are less clearly defined — operating transparently is the best protection.

Double closes: Florida title companies widely support double closings. In South Florida, where deal values are higher and assignment fees may be proportionally larger, double closes are more common because they keep the spread private. Transactional funding is readily available from multiple Florida-based and national providers.

Documentary stamps on double closes: You pay doc stamps on both transactions. On a $150,000 A-to-B and a $185,000 B-to-C in a standard Florida county, that is $1,050 + $1,295 = $2,345 in doc stamps. In Miami-Dade, it would be $1,725 + $2,128 = $3,853. These costs are significant and can eat into your spread on smaller deals. An assignment avoids the double tax but exposes your fee.

Investor-friendly title companies: Florida has more investor-friendly title companies than any other state due to the volume of wholesale activity. In Miami, Fort Lauderdale, Orlando, Tampa, and Jacksonville, you will find title companies that specialize exclusively in investor transactions. They handle assignments, double closes, transactional funding, and cash-to-cash purchases all day long. Ask any Florida wholesaler for three title company recommendations and you will have a strong starting list. See our investor-friendly title company guide.

HOA/condo estoppel delays: If the property is in an HOA or condo association, the title company will order an estoppel letter. Florida law allows associations up to 15 business days to respond (with certain expedited options at additional cost). This can be a bottleneck on fast-closing investor deals. Budget this timeline into your deal and request the estoppel as early as possible.

FIRPTA withholding: If the seller is a foreign person or entity, the buyer may be required to withhold 15% of the purchase price for IRS tax purposes under FIRPTA (Foreign Investment in Real Property Tax Act). This is more common in South Florida than anywhere else in the country. If you are buying from a foreign seller, the title company will handle the withholding, but it can complicate the deal and reduce the seller's net proceeds. Make sure this is addressed early in the transaction.

Typical Closing Timeline

Retail (financed): 30-45 days. The 15-day inspection period, appraisal, lender underwriting, and title work run concurrently. Insurance procurement can add time in some areas, particularly after hurricane events.

Cash investor: 7-14 days with clean title. Florida title companies are fast and experienced. If the property is in an HOA or condo association, the estoppel letter can add 10-15 business days unless you pay for expedited processing. Code enforcement liens in Miami-Dade and Broward can take time to resolve.

What affects timeline in Florida: HOA/condo estoppel letters are the most common delay on Florida closings. Code enforcement liens in urban counties can take weeks to clear. FIRPTA withholding on foreign-seller transactions adds complexity. Insurance procurement (especially wind coverage) can delay financed closings. Florida's high volume of transactions means title companies are efficient, but backlogs can occur during peak buying seasons (Q1 and Q4). Properties that went through the 2008-2012 foreclosure crisis may still have title issues from that era.

Key Differences from Other States

County-specific title insurance customs: Florida is virtually unique in having the title insurance payment obligation vary by county. Most of the state follows the seller-pays convention, but Miami-Dade, Broward, Sarasota, and Collier counties shift it to the buyer. No other state on this guide has this degree of intra-state variation.
Documentary stamp tax: Florida's doc stamps ($7/$1,000 statewide, $11.50/$1,000 in Miami-Dade) are among the highest in the country. Texas has no transfer tax. Indiana has no transfer tax. Ohio's conveyance fee ($1-$4/$1,000) is lower. Only states like New York and Connecticut have comparable or higher transfer taxes.
No wholesale-specific statute: Florida is the largest wholesale market without a dedicated wholesale law. Texas has SB 1577, Oklahoma has SB 1075, and several other states have enacted wholesale-specific legislation. Florida's approach relies on general contract law, which provides flexibility but less regulatory certainty.
15-day inspection period: Florida's standard inspection period is longer than the 10-day standard in most other states. This gives buyers more time but also means a longer period of uncertainty for sellers and wholesalers.

Frequently Asked Questions

How do documentary stamps work in Florida?

Florida charges documentary stamp tax on deeds at a rate of $0.70 per $100 ($7.00 per $1,000). Miami-Dade County adds a surtax for a combined rate of $1.15 per $100. On a $300,000 property, that is $2,100 statewide or $3,450 in Miami-Dade. The seller customarily pays the doc stamps on the deed.

Who pays for title insurance in Florida?

It depends on the county. In most of Florida, the seller pays for the owner's title policy. In Miami-Dade, Broward, Sarasota, and Collier counties, the buyer pays. This catches out-of-state investors off guard. Always confirm the local custom before estimating closing costs. See our title insurance guide for more.

How long is the inspection period in Florida?

The standard inspection period in FAR/BAR contracts is 15 days — longer than the 10-day period common in many other states. Investment deals typically waive the inspection period with non-refundable earnest money from day one.

Does Florida have a wholesale-specific statute?

No. As of early 2026, Florida does not have a state law specifically regulating wholesale real estate transactions. Contract assignments are governed by general contract law. Florida is the largest wholesale market without a dedicated wholesale statute. See our Florida compliance guide for best practices.

How long does a closing take in Florida?

Retail financed closings typically take 30-45 days. Cash investor deals can close in 7-14 days if the title is clean. HOA and condo estoppel letters can add 10-15 business days. Florida title companies in major markets handle high volumes and are generally efficient.

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Transaction customs vary significantly by county within Florida, particularly regarding who pays for title insurance. Documentary stamp tax rates are set by state statute but Miami-Dade has an additional county surtax. Consult a licensed real estate attorney or experienced title professional in Florida before relying on any information presented here. For Florida-specific wholesaling compliance, see our Florida compliance guide.