Buying in Boca Raton should feel exciting, not confusing. Yet many buyers are surprised by the number of line items due at closing. If you know what to expect in Palm Beach County, you can budget with confidence and avoid last‑minute stress. In this guide, you’ll learn what buyer closing costs include, who typically pays what locally, how condos differ from single‑family homes, realistic cost ranges, and smart ways to save. Let’s dive in.
What closing costs include
Closing costs are the one‑time expenses you pay to finalize your purchase. They are separate from your down payment. Here is a simple checklist of what you may see in Boca Raton:
- Lender and loan costs (for financed buyers)
- Origination or points
- Underwriting, processing, application, and credit report fees
- Appraisal fee
- Flood certification and tax service fees
- Lender’s title insurance premium and mortgage recording
- Prepaid interest and any mortgage insurance items
- Title and closing fees
- Title search and settlement fee
- Lender’s title insurance policy
- Recording fees for the mortgage and deed
- Government and transfer charges
- Documentary stamp taxes, intangible taxes, and county recording costs
- Prorations and prepaids
- Property tax prorations
- Homeowner’s insurance prepayment and escrow deposits for taxes and insurance
- Inspections, surveys, and reports
- Home inspection, termite or WDO, wind mitigation, and 4‑point inspection
- Survey when required
- HOA or condo association charges
- Estoppel letter, transfer fee, and application or move‑in fees
- Miscellaneous
- Courier, wire, and notary fees, plus any negotiated credits
Who pays what in Palm Beach County
Local customs help set expectations, but your contract controls who pays each item. In South Florida, including Boca Raton and greater Palm Beach County, these are the typical patterns:
- Seller customarily pays the owner’s title insurance policy. This is a common local practice and can be a valuable concession for buyers. It is still negotiable.
- You, the buyer, typically pay all lender‑related charges, the lender’s title insurance policy, and recording fees tied to the mortgage. You also fund escrow deposits for taxes and insurance if you have a loan.
- Sellers commonly cover documentary stamp tax on the deed in many Florida transactions. Practices vary, so confirm with your title company and contract.
- HOA and condo fees like estoppel and transfer charges can be paid by either party. Many associations charge the seller, but this is often negotiated in the contract.
If you are unsure, ask for a written estimate from your lender and title company and review your contract language closely.
Condo vs single‑family: key differences
If you are buying a condo in Boca Raton, plan for a few extra steps and costs compared with a single‑family home:
- Association documents and estoppel letter. The association issues an estoppel that confirms dues, assessments, and balances. The fee often ranges from modest to several hundred dollars. Payer is negotiable.
- Application and transfer fees. Many condos require a buyer application, background checks, and move‑in or transfer fees. These add time and cost.
- Insurance considerations. Condos usually have a master policy for the building. You will still need an HO‑6 policy for interior coverage, personal property, liability, and any gaps or deductibles in the master policy.
- Financing review. Lenders look at association reserves, owner‑occupancy levels, litigation, and budgets. Weak reserves or pending litigation can affect loan eligibility and timing.
- Timing. Allow extra time for association approvals and document processing so your closing does not get delayed.
What it costs: realistic ranges
Every deal is different, but you can plan with these general ranges in Boca Raton:
- Financed buyers: budget roughly 2% to 5% of the purchase price for closing costs, not including your down payment.
- Cash buyers: budget roughly 1% to 3% since there are no lender fees or lender’s title insurance.
Here are common line item ranges to help you sketch a budget:
- Appraisal: $450 to $900
- Home inspection: $300 to $700; termite or WDO: $75 to $250
- Title search and settlement fee: $400 to $900
- Lender fees and origination: 0.5% to 1.5% of the loan amount, or a flat fee
- Recording and county charges: typically in the low hundreds
- Escrow deposits for taxes and insurance: often $500 to $5,000+ depending on timing
- HOA or condo estoppel and transfer fees: $100 to $500+
- Owner’s title insurance: a one‑time premium based on price; customarily paid by the seller locally
Actual amounts depend on your purchase price, loan type, lender, title company, and negotiated terms. Always request a Loan Estimate from your lender and a closing estimate from your title company for precise numbers.
Example: Single‑family, $700,000 financed
- Estimated buyer closing costs: 2.0% to 4.0%, or about $14,000 to $28,000.
- Assumes seller pays the owner’s title policy, which is customary in South Florida.
Example: Condo, $400,000 financed
- Estimated buyer closing costs: 2.5% to 5.0%, or about $10,000 to $20,000.
- Range accounts for association application fees, estoppel fees, and sometimes larger escrow requirements.
Example: Cash, $700,000 single‑family
- Estimated buyer closing costs: 1% to 2%, or about $7,000 to $14,000.
- No lender fees or lender’s title policy, but you still cover recording, inspections, and any HOA costs.
Timeline and documents you will get
Staying on schedule starts with understanding your key documents and when they arrive.
- Loan Estimate. Your lender must provide this within 3 business days of your loan application. Use it to compare rates, fees, and total costs across lenders.
- Title commitment. Review this as soon as it is available to understand coverage and any title issues that must be cleared before closing.
- Association documents and estoppel. Request these early. Processing can take time and may impact your closing date.
- Insurance quotes. In Boca Raton, wind and hurricane coverage can affect your premium. Order inspections early and get quotes in advance.
- Closing Disclosure. Your lender must provide this at least 3 business days before closing. Compare it to your Loan Estimate and ask questions about any differences.
- Funds to close. You will need certified funds or a wire for your final amount. Wire fraud is a real risk. Always confirm wiring instructions by calling the title company at a known number and never rely solely on email instructions.
Smart negotiation tips in Boca Raton
A few thoughtful moves can lower your cash to close or reduce risk.
- Leverage the local title custom. It is customary for the seller to pay the owner’s title policy in Palm Beach County. Keep this in place or negotiate an equivalent credit if the seller asks you to assume it.
- Request seller credits when helpful. In a buyer‑friendly negotiation, you can ask the seller to contribute toward your closing costs or offer a credit for repairs. Document these in the contract.
- Shop lenders and title companies. Interest rates, fees, and credits vary. Compare multiple Loan Estimates and ask for written fee sheets from the title company.
- Time your closing. Closing late in the month or near tax cycles can affect prepaid interest and escrow deposits. Ask your lender to model different dates.
- Do thorough condo due diligence. Review reserves, budgets, minutes, and litigation. Issues here can impact loan approval and future assessments.
Quick pre‑closing checklist
- Get pre‑approval and request a Loan Estimate from at least two lenders
- Order inspections early and ask about wind mitigation for possible insurance savings
- Request title and association documents as soon as you are under contract
- Obtain homeowner’s insurance quotes and finalize coverage
- Review your Closing Disclosure carefully and confirm closing funds and wiring procedures
- Bring government‑issued ID to closing and keep all wire confirmations and receipts
Ready to buy in Boca Raton?
When you understand closing costs, you can focus on what matters most: choosing the right home and lifestyle. With the right plan, there are very few surprises on closing day. If you would like a clear estimate tailored to your price point and property type, I can connect you with trusted lenders and title partners and walk you through each step.
For concierge guidance from contract to keys, connect with Michelle Sadownick to Schedule a Private Consultation.
FAQs
Who pays the owner’s title insurance in Boca Raton?
- In South Florida, including Palm Beach County, the seller customarily pays the owner’s title insurance policy, but it is negotiable and your contract controls.
How much should a Boca Raton buyer budget for closing costs?
- If you are financing, plan for about 2% to 5% of the purchase price, plus your down payment; if you are paying cash, plan for about 1% to 3%.
Are condo closing costs higher than single‑family homes?
- Often yes. Condos can include estoppel fees, association application and transfer charges, and extra lender reviews that add both time and cost.
What is an HOA estoppel letter in Palm Beach County?
- It is a document from the association that confirms dues, assessments, and account status. The fee is common and the payer is negotiable, so check your contract.
When will I see my final closing numbers?
- Your lender must provide a Closing Disclosure at least 3 business days before closing. Review it against your Loan Estimate and ask questions about any changes.
Can I ask a seller to help with my closing costs?
- Yes. You can request seller credits toward your closing costs or prepaid items. Credit amounts and allowable uses depend on the loan program and your contract.
