July 13, 2026

Florida Real Estate Closing Costs: What the Exam Expects You to Know

Master Florida closing costs for the sales associate exam: doc stamps, intangible tax, prorations, and who pays what. Study smarter with AhaPrep.

Why Closing Costs Are a Guaranteed Exam Topic

Closing costs questions appear on virtually every Florida Real Estate Sales Associate exam. The state wants to confirm you understand how funds flow at closing, who is responsible for specific charges, and how to calculate figures that show up on a Closing Disclosure. This is not material you can skim. The exam will give you a purchase price, a loan amount, or a proration scenario and expect a specific dollar answer. Study the rules, learn the formulas, and practice the math.

Think you know this topic? Put it to the test.

Try 15 questions free →

For a broader look at every category the exam covers, see the 19 exam topics overview.

Documentary Stamp Taxes

Documentary stamp taxes are state taxes on written documents that transfer property or evidence a debt. Two separate doc stamp taxes appear on Florida closings, and the exam tests both.

Doc Stamps on the Deed

When real property changes hands, the deed is taxed at $0.70 per $100 of consideration (or any fraction thereof). The tax is based on the full sale price, not the loan amount.

Example: A property sells for $350,000. Divide by 100, then multiply by $0.70: 3,500 × $0.70 = $2,450.

Miami-Dade County is the one exception every candidate must memorize:

  • Single-family residences: $0.60 per $100 (no surtax)
  • All other property types: $0.60 per $100 + $0.45 per $100 surtax = $1.05 per $100 total

Doc stamps on the deed are customarily paid by the seller in most Florida counties, though this can be negotiated. In Miami-Dade and Broward counties local custom sometimes shifts the obligation, so read the fact pattern carefully on exam day.

Doc Stamps on Promissory Notes and Mortgages

When a buyer signs a promissory note to finance the purchase, that document is taxed at $0.35 per $100 of the note amount. This charge falls on the buyer because the buyer is the one executing the note.

Example: A buyer borrows $280,000. Divide by 100, then multiply by $0.35: 2,800 × $0.35 = $980.

Intangible Tax on New Mortgages

Florida imposes an intangible tax on new mortgages at a rate of $0.002 per $1 of the mortgage amount — that is 0.2%. Like the doc stamp on the note, this is the buyer's expense.

Example: On that same $280,000 mortgage: $280,000 × 0.002 = $560.

A quick way to keep these straight: if a document involves the deed, think seller and $0.70. If a document involves the loan, think buyer, doc stamps at $0.35, and intangible tax at 0.2%. Bookmark the formula sheet to drill these until the calculation is automatic.

Prorations: Taxes, Rent, and HOA Fees

Prorations split ongoing expenses between the seller and buyer based on the closing date. The exam loves proration problems because they require you to know both the rule and the arithmetic.

Property Tax Prorations

Florida property taxes are paid in arrears — meaning the bill for the current year is not due until November of that same year. At closing, the seller owes the buyer a credit for every day the seller owned the property during the current tax year, because the buyer will eventually pay the full year's tax bill.

The standard calculation uses a 365-day year (or 360-day banker's year, depending on contract terms — the exam will specify which to use). The closing day itself is typically credited to the buyer.

Example (365-day year): Annual taxes are $3,650. Closing is July 1. The seller owned the property for 181 days (January 1 through June 30). Daily rate: $3,650 ÷ 365 = $10/day. Seller's credit to buyer: 181 × $10 = $1,810.

Rent Prorations

When a property has tenants, rent is paid in advance. If the seller collected rent for the full month and closing happens mid-month, the buyer is entitled to the rent for the remaining days the buyer will own the property during that month. This appears as a credit to the buyer and a debit to the seller on the Closing Disclosure.

HOA Fee Prorations

Homeowners association fees are also typically paid in advance. The same logic applies: if the seller prepaid fees that cover a period extending past closing, the buyer owes the seller a credit for the unused days.

Who Pays What: A Quick-Reference Summary

  • Seller typically pays: Documentary stamp tax on the deed, real estate commission, title search, and any outstanding liens
  • Buyer typically pays: Documentary stamp tax on the promissory note, intangible tax on the new mortgage, lender fees, and title insurance (varies by county)
  • Both parties share: Prorated property taxes, rent, and HOA fees based on the closing date

These customs can be modified by contract, so on the exam always defer to what the question states the parties agreed to.

Reading the Closing Disclosure

The Closing Disclosure replaced the HUD-1 Settlement Statement for most residential transactions under the TRID rules effective October 2015. The exam may still reference both documents, so know that the Closing Disclosure organizes charges into sections for loan costs, other costs, and cash to close. Debits reduce a party's proceeds; credits increase them. Prorations that favor the buyer show as a buyer credit and a seller debit. Understanding this layout lets you quickly verify that a transaction balances.

For definitions of terms like consideration, proration, and escrow, the glossary is a useful reference while you study these concepts. Once you feel confident with the rules, test yourself with practice questions focused on closing cost calculations — timed repetition is what converts formula knowledge into exam-day accuracy.

Study These Numbers Until They Are Automatic

Closing cost questions reward candidates who have internalized the rates and the proration method, not just memorized that these taxes exist. Write out the calculations by hand, work through different purchase prices and loan amounts, and verify your logic against the correct answer before moving on.

AhaPrep at ahaprep.com is built specifically for Florida Sales Associate candidates and includes topic-by-topic practice questions, a formula reference, and full-length timed exams that mirror the format and difficulty of the actual Pearson VUE test. If closing costs or any other section needs more reinforcement, AhaPrep lets you target exactly those areas without wading through material you have already mastered.

See how well you know this material

15 free questions, no account needed. Covers all 19 Florida RE exam topics.

Try 15 questions free →

Join the free study group

Ask questions, share tips, and study with others preparing for the Florida RE exam.

Join on Facebook

AhaPrep is not affiliated with Pearson VUE, DBPR, or FREC.

support@ahaprep.com