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Tax & Buying Costs in Florida
With the Dollar at an 11-year record low against the Pound and in a
weak position against many other currencies around the world, there
is no better time to buy your dream home in the Sunshine State. As
well as the favourable exchange rate, for those relocating to
Florida there are also the advantages of having no VAT to pay on the
purchase price of your home or any personal income tax, inheritance
tax or gift taxes to pay! But before you start celebrating, take a
look below at the buying costs and other tax liabilities you'll have
when you make the move.
Buying Costs
Realtor/Estate Agent Fees - When buying a property through a real
estate agent or realtor expect to pay them between 3 - 6% of the
value of the property.
Legal Costs - Real estate transactions in Florida are normally
handled by Title Companies as opposed to lawyers/solicitors. They
often charge a set fee of somewhere between $150-$400, depending
upon the complexity of the purchase. They also arrange Title
Insurance, which protects homeowner (and lender) against any defects
on the Title. This could be as much as 1% of the property value.
Closing Costs - You'll be required to pay between $500 - $1,000 in
fees for recording of mortgage and deeds, property valuation,
termite inspection and a survey (the last 3 of which will normally
be required by your lender).
Taxes - At closing, you'll be liable to pay the State of Florida two
types of tax if you are buying property using a mortgage. These are
Documentary Stamps - 35 cents for every $100 of your mortgage
Intangible Tax - 0.002 cents for every $1 of your mortgage
Please note: 1st-for-florida-property.co.uk and its affiliates are
not qualified to offer professional tax advice. Before you purchase
your property please seek expert counsel.
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