Settlement Service Fees

Federally related mortgage loan transactions involve three basic categories of services and related charges in order to close escrow. These charges appear on the Uniform Settlement Statements (as defined in 12 U.S.C. § 2603) and include:

(1) title insurance charges in connection with establishing and transferring ownership (i.e., title search and examination fees, premiums charged in connection with issuing a lender’s title insurance policy (including endorsements), and the costs associated with conducting the closing)

(2) amounts paid to the city and/or state and/or local governments for establishing and transferring ownership (i.e., documentary stamp and intangible taxes on both the note and mortgage, including all fees associated with recording the mortgagee’s interest in the property).

Documentary stamp tax is levied at the rate of $.70 per $100 (or portion thereof) on documents that transfer interest in Florida real property, such as warranty deeds and quit claim deeds. (The Miami-Dade County rate is $.60 on all documents plus $.45 surtax on documents transferring anything other than a single-family residence). This tax is usually paid to the Clerk of Court when the document is recorded. See Department of Revenue

Documentary stamp tax is also levied at the rate of $.35 per $100 (or portion thereof) on documents that are executed or delivered in Florida, for example:

  • Notes and other written obligations to pay.
  • Certain renewal notes.
  • Bonds (original issuance).
  • Mortgages.
  • Liens.

The Clerks of Court send the money to the Florida Department of Revenue and the Department distributes the funds according to law, and

(3) fees associated with originating the loan (i.e., survey fees, appraisal fees, tax service fees, credit check fees, loan document preparation fees, notary charges, loan origination fees, loan commitment fees, loan processing fees, hazard insurance fees, flood certification fees, interest prepayments, and lender inspection fees). The majority of these services, however, will not be provided and performed until closing.