In Florida real estate closings, all of the following items are typically prorated between buyer and seller EXCEPT:
Correct Answer
C) Title insurance premiums paid at closing
Correct: Title insurance premiums are one-time charges paid at closing and are not prorated between parties. Why not A: Property taxes are commonly prorated based on ownership periods. Why not B: HOA dues paid in advance are prorated so each party pays for their ownership period. Why not D: Rental income collected in advance is prorated, with unused portions credited to the buyer.
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A Jacksonville property closes on September 22nd. The homeowner's insurance premium of $1,200 runs from August 1st through July 31st of the following year. The buyer will assume the policy. Using the 30-day month (banker's) method and treating the day of closing as belonging to the buyer, what is the insurance proration amount and who receives the credit?
- → Property taxes of $2,400 for the year have been paid by the seller. The closing is on September 15th (day 258 of 365). How much does the buyer owe the seller for the unused portion of prepaid taxes?
- → In Florida, who typically pays for owner's title insurance?
- → In Florida, who typically selects the closing agent?
- → A Florida buyer's side of the closing statement shows note documentary stamp tax of $875, nonrecurring intangible tax of $500, lender charges of $1,200, and recording charges of $95. What is the buyer's total for those stated items?
- → A Florida buyer agrees by contract to pay a survey of $575, an inspection of $350, an appraisal of $650, and prepaid interest of $635. What is the buyer's total for these agreed costs?
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Previous Question
A Jacksonville property closes on September 22nd. The homeowner's insurance premium of $1,200 runs from August 1st through July 31st of the following year. The buyer will assume the policy. Using the 30-day month (banker's) method and treating the day of closing as belonging to the buyer, what is the insurance proration amount and who receives the credit?
Next Question
A Florida contract states that the seller will pay deed documentary stamp tax of $1,260, owner's title charges of $650, and deed recording fees of $54. What is the seller's total for those stated closing costs?