Tax Closing Costs

Property Taxes
This is the one closing cost that is often prorated between the buyer and seller. If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer will be occupying the property. Likewise, if the taxes have not yet been paid, the seller typically reimburses the buyer for the period in which the buyer occupies the property.

Transfer Taxes and Recording Fees
This is the cost for transferring ownership of the property and recording the purchase documents. The fee is often calculated as a percentage of the sales price. If you purchase a Fannie Mae or Freddie Mac property they may not pay these taxes, even if it is normal and customary for the seller. In Florida the documentary stamps on the deed are normally paid by the seller, but Freddie and Fannie cannot pay this. Currently, the documenary stamps are 70 cents per $100 of value. So, a $100,000 home sale will have documentary stamps of $700.