@Anonymous wrote:
Okay folks. I know some of you are Realtors in Florida and some of you are Mortgage lenders in Florida, so I would appreciate your answers. Is there a State law which specifies who pays the closing costs in a purchase of a house or Condo in Florida--the seller or the buyer, or a combination of the two? I know from my experiences with previous buying of homes who pays is up between the two parties involved. I had someone ask me and I did not know how to answer. She thought she had read somewhere that the law in Fl. says the seller pays closing costs. Are the closing costs paid differently if you are using the VA for lending? Thanks.
^^^No state law determines this. It is in your contract and is negotiated. The "standard" state contract (AS IS version) details who pays what in paragraph 9. If you are using another contract form look for the paragraph labeled "Closing Costs, Fees and Charges"
Both parties pay closing costs. There are seller costs and buyers costs. In general the seller costs are based on the sales price and the buyer's costs are based on the loan amount. The provision listed above is very specific as to who pays what, but you can easily change that by specifying that the seller pay $X toward your closing costs and pre-paid expenses in your offer.
Years ago the seller had to pay certain expenses for the buyer for a VA loan. Now it is very, very few expenses that are required. Usually just the Tax Service Fee (if any) and it runs less than $100 and the WDO report, which also is usually less than $100. Some sellers have a big misconception on this part, they think they have to pay all of buyers closing costs and reject VA offers because of it. Read the FHA/VA addendum for specifics so you understand completely.
