Sticker shock at the closing table is no fun. If you are buying or selling in Davenport, you can avoid surprises by understanding which fees apply in Florida, what is typical in Polk County, and who usually pays. This guide breaks down the key costs, local customs, and simple examples you can adjust to your price point. You will also get a checklist so you can plan your timeline with confidence. Let’s dive in.
What closing costs include
Closing costs are the fees and taxes paid to transfer property and complete your loan. In Davenport and across Florida, they often include:
- State transfer taxes and mortgage taxes
- Recording fees and title services
- Title insurance policies (owner and lender)
- Lender charges, appraisal, credit report
- Prepaid items and escrows for taxes and insurance
- Realtor commissions (typically paid by the seller)
- Prorations for property taxes and association dues
- HOA/CDD estoppel and transfer fees where applicable
Florida taxes to know
Florida charges statewide taxes on most real estate transfers and new mortgages. These are standard formulas that apply in Davenport.
Doc stamps on deed
- State documentary stamp tax on deeds is $0.70 per $100 of the purchase price (0.7%).
- This is commonly paid by the seller in Florida, but it can be negotiated.
Doc stamps on mortgage
- If you take a new mortgage, the documentary stamp tax on the note is $0.35 per $100 of the loan amount (0.35%).
- This is typically a buyer expense.
Intangible tax on mortgage
- Florida charges an intangible tax of 2 mills, or 0.2% of the loan amount, on new mortgages.
- This is also typically paid by the buyer.
Title insurance basics
- Florida uses state-promulgated title insurance rates. The exact premium depends on the price and policy type.
- Who pays the owner’s policy is local custom and negotiable in the contract.
Polk County specifics
Davenport is in Polk County, and a few local practices matter at closing.
Property tax prorations
- Florida property taxes are billed annually, usually in November, and become delinquent on April 1 of the next year.
- Because taxes are paid in arrears, closings typically prorate using the most recent tax bill so the seller covers the period they owned the home.
- Use the actual Polk County tax bill for proration estimates and to confirm any exemptions on the property.
Recording and clerk fees
- The Polk County Clerk & Comptroller sets recording fees by document and page count.
- Your title company will calculate the exact amount and show it on the Closing Disclosure.
HOA and CDD items
- Many Davenport communities have HOAs and Community Development Districts.
- Associations often require an estoppel letter that shows dues status and any transfer fees. Sellers commonly order and pay for the estoppel, but the contract can assign payment.
- Some HOAs or CDDs charge a transfer or capital contribution at closing. Confirm who pays in your contract and review association documents.
Flood insurance checks
- If the home is in a FEMA special flood hazard area and the buyer is getting a mortgage, the lender will usually require flood insurance.
- Some lenders ask for an elevation certificate. Confirm costs during your loan and insurance quotes.
Who pays what
Local custom guides many items, and your contract controls the final allocation.
Seller typically pays
- Realtor commissions
- Documentary stamp tax on the deed (0.7% of sale price)
- Owner’s title insurance policy in many Florida transactions
- Unpaid and prorated property taxes up to the closing date
- HOA/CDD estoppel fees and payoff of any seller-held assessments
- Any agreed seller credits or repairs
Buyer typically pays
- Appraisal, credit report, and lender origination or processing fees
- Documentary stamp tax on the mortgage (0.35% of loan amount)
- Intangible tax on the mortgage (0.2% of loan amount)
- Lender’s title insurance policy and mortgage recording fees
- Prepaid items: first-year homeowner’s insurance, initial escrow deposits, and daily interest
- Inspections, survey, and optional home warranty
Negotiable items
- Owner’s title insurance policy
- HOA transfer or capital contribution
- Settlement or closing fee
- Some recording and courier fees
Davenport cost examples
Below are simple scenarios you can adjust to your price and down payment. These show the Florida tax formulas and common allocations. Other items vary by lender, title company, and association.
Assumptions:
- Buyer puts 10% down
- Seller commission is 5.5% of the sale price
- Owner’s title policy placeholder is 0.5% of price for illustration only
- Recording and miscellaneous county fees vary, often $200 to $600
- Escrows, prepaid insurance, HOA/CDD items, and prorations are variable
Example A: $250,000 purchase
Seller estimates:
- Commission at 5.5%: $13,750
- Doc stamps on deed at 0.7%: $1,750
- Owner’s title policy (assumed 0.5%): $1,250
- Other seller items and prorations: variable
- Estimated seller total baseline: about $16,750 plus prorations and any payoffs
Buyer estimates:
- Loan amount at 10% down: $225,000
- Doc stamps on mortgage at 0.35%: $787.50
- Intangible tax at 0.2%: $450
- Lender fees, appraisal, credit: commonly $1,000 to $3,000
- Initial escrows and insurance: commonly $1,000 to $3,000
- Estimated buyer closing costs, excluding down payment: roughly $4,000 to $8,000 plus the mortgage taxes above
Example B: $400,000 purchase
Seller estimates:
- Commission at 5.5%: $22,000
- Doc stamps on deed at 0.7%: $2,800
- Owner’s title policy (assumed 0.5%): $2,000
- Estimated seller total baseline: about $26,800 plus prorations and payoffs
Buyer estimates:
- Loan amount at 10% down: $360,000
- Doc stamps on mortgage at 0.35%: $1,260
- Intangible tax at 0.2%: $720
- Lender and closing fees, plus escrows: commonly $1,500 to $4,000 or more
- Estimated buyer closing costs, excluding down payment: roughly $4,000 to $10,000
Example C: $600,000 purchase
Seller estimates:
- Commission at 5.5%: $33,000
- Doc stamps on deed at 0.7%: $4,200
- Owner’s title policy (assumed 0.5%): $3,000
- Estimated seller total baseline: about $40,200 plus prorations and payoffs
Buyer estimates:
- Loan amount at 10% down: $540,000
- Doc stamps on mortgage at 0.35%: $1,890
- Intangible tax at 0.2%: $1,080
- Lender and closing fees, plus escrows: commonly $2,000 to $6,000 or more
- Estimated buyer closing costs, excluding down payment: roughly $5,000 to $12,000
Key takeaway: For sellers, commission and deed stamps drive most costs. For buyers, mortgage taxes plus lender fees and escrows make up the bulk.
Checklist and timeline
Use this quick plan to stay ahead of deadlines.
Before you go under contract
- Buyers: secure a lender preapproval and ask for a Loan Estimate with expected closing costs and escrows.
- Sellers: order HOA/CDD estoppel letters early and request mortgage payoff statements.
- Both: pull the latest Polk County tax bill and property record to estimate prorations and confirm exemptions.
During your contingency period
- Buyer: schedule inspections and confirm any flood zone and insurance requirements.
- Buyer: lock your rate if desired and confirm lender-required escrow deposits.
- Title company: order title search to identify liens, CDDs, and HOA items.
- Seller: deliver association documents and estoppels to the buyer.
Three days before closing
- Both: review the Closing Disclosure or settlement statement. Lenders must provide the Closing Disclosure to borrowers at least three business days before consummation.
- Buyer: arrange your wire or certified funds per title company instructions.
- Seller: confirm payoff details and bring valid ID to closing.
Day of closing
- Sign documents, the title company records the deed and mortgage, and funds are disbursed after recording and funding.
Avoid last-minute surprises
- Ask your lender and title company for itemized estimates early, then update them after inspections and association reviews.
- Confirm who pays each HOA/CDD fee in your contract and budget for any transfer or capital contributions.
- Use the real Polk County tax bill for prorations, not a statewide estimate.
- Review the Closing Disclosure line by line and ask questions right away if a number looks off.
When you want a clear estimate tailored to your Davenport address and community, reach out to Ken Burningham for a local breakdown and guidance from contract to keys.
FAQs
Who pays the Florida deed tax on Davenport sales?
- In Florida, the seller customarily pays the documentary stamp tax on the deed at 0.7% of the sale price, but the contract can change this.
What mortgage taxes do Davenport buyers pay?
- Buyers with a new loan typically pay the 0.35% documentary stamp tax on the note and the 0.2% intangible tax on the mortgage.
Do sellers always pay for the owner’s title policy?
- Not always. In many Florida closings the seller pays the owner’s policy, but it is a negotiable contract term.
How are Polk County property taxes handled at closing?
- Taxes are paid in arrears, so closings usually prorate based on the latest bill, with the seller covering their period of ownership and the buyer receiving a credit.
What are HOA and CDD estoppel fees in Davenport?
- Associations often charge an estoppel fee to confirm account status and may charge transfer or capital contribution fees; who pays should be set in the contract.
How much should I budget for buyer closing costs?
- A common planning range is 2% to 5% of the purchase price for closing costs, excluding your down payment, plus any prepaid escrows required by the lender.
