Buying or selling in Key West and wondering what the final number will look like at the closing table? You are not alone. Closing costs in the Keys include state taxes, title and lender fees, insurance prepaids, and a few local items that can surprise first-timers. In this guide, you will see what buyers and sellers typically pay in Monroe County, how much to budget, and the local factors that can move your bottom line. Let’s dive in.

What closing costs cover in Key West

Closing costs are the one-time expenses you pay at settlement to transfer ownership and finalize a mortgage. In Florida, buyers commonly spend about 2% to 5% of the purchase price in closing costs, not including the down payment. Sellers often cover 6% to 9% of the sale price when you include real estate commissions. These ranges vary based on the contract, financing, and property type.

Most items are negotiable. Florida custom, including Monroe County, often has the seller pay for the owner’s title insurance and the buyer pay for mortgage-related fees and taxes. For a clear overview of categories and timelines, see the CFPB’s guidance on closing costs and disclosures in the CFPB’s plain-English overview of closing costs.

Typical buyer closing costs (Monroe County)

If you are financing, expect the following line items. If you are paying all cash, your costs are usually lower since there are no lender fees or mortgage taxes.

• Lender fees (application, origination). Typically 0.5% to 1.5% of the loan amount, depending on the lender and loan program.
• Appraisal. Often $400 to $900, based on property size and availability in the Keys.
• Credit, underwriting, and processing. Usually modest flat fees (about $25 to $400 total).
• Lender’s title insurance (if financing). Generally required by the lender. The premium depends on the loan size.
• Owner’s title insurance. In Florida, the seller commonly pays this, but it is negotiable and should be spelled out in your contract.
• Recording fees. The Monroe County Clerk charges per-page fees for recording the mortgage and other documents. Expect a few hundred dollars, depending on document count.
• Florida intangible tax on new mortgages. This is 0.2% of the loan amount (0.002 times the principal). For example, a $300,000 mortgage equals a $600 intangible tax. See the Florida Department of Revenue page on the intangible tax.
• Survey (if required). Often $300 to $1,000+ based on lot size and location.
• General home inspection and specialized inspections. Often $300 to $1,000+ depending on scope. Wind, roof, and termite/WDO inspections are common.
• Flood and elevation documentation. Many Key West homes sit in flood zones. An elevation certificate can be several hundred dollars and may influence your insurance pricing.
• HOA or condo estoppel letter. Expect $100 to $500 or more, particularly common with condos in Key West.
• Prepaid items and escrows. Your lender will collect several months of homeowners insurance and property taxes at closing. In the Keys, wind and hurricane premiums are often higher than inland, which can increase the escrow.
• Title or settlement fee. Typically paid by one party or split, based on local practice and your contract.

Example: On a $600,000 purchase with 20% down and a $480,000 loan, buyer closing costs often total about 2% to 4% of the price, or roughly $12,000 to $24,000. That figure includes lender fees, appraisal, inspections, the intangible tax, title charges, and prepaids.

Typical seller closing costs in Key West

Sellers cover the marketing side and several transfer items. Here is what to expect.

• Real estate commission. Commonly 5% to 6% of the sale price (negotiable and split between listing and buyer’s brokerage).
• Owner’s title insurance. Customarily paid by the seller in Florida, with premiums tied to the purchase price per regulated rate schedules.
• Documentary stamp tax on the deed. Florida’s deed tax is $0.70 per $100 of consideration (0.007 times the sale price). This is often paid by the seller, subject to the contract. See Florida Department of Revenue guidance on documentary stamp tax.
• Prorations. Property taxes, HOA dues, and utilities are settled as of the closing date.
• Payoff and lien-related fees. Any mortgages or liens are paid off at closing, including recording fees to release them. Agreed repairs or credits also show here.

Example: On a $600,000 sale, seller costs often total about 7% to 9% of the sale price, or $42,000 to $54,000. That range includes a 6% commission at $36,000 plus the owner’s title policy, deed tax, and routine prorations or fees.

Key West specifics that affect your bottom line

Flood zones and insurance

Many properties in Key West lie in flood zones. Lenders may require flood insurance if the home is in a Special Flood Hazard Area. Elevation certificates and updated surveys are common requests and can impact flood insurance premiums. Higher wind and hurricane premiums also raise the prepaid escrow you bring to closing.

Condos and HOA estoppel letters

Condos and small associations are common in town. Plan for an estoppel letter fee and request it early to avoid delays. Review the association’s reserves and any pending assessments since these can affect what you need to bring to closing and your near-term expenses.

Title insurance custom

It is common in Monroe County for the seller to pay the owner’s title insurance premium, but this is negotiable. Title insurance rates are regulated in Florida, so two quotes for the same price point should be similar. For background on regulated title rates, consult the Florida Office of Insurance Regulation.

Recording fees and local logistics

Recording fees are set by the Monroe County Clerk based on document type and page count. If your transaction includes a deed, a mortgage, and several releases, the total can rise accordingly. For fee schedules and process notes, visit the Monroe County Clerk of Court & Comptroller.

Market conditions and negotiations

On an island with limited inventory, who pays what often follows market strength. In a seller’s market, buyers may take on more costs to win. In a balanced or buyer-favorable market, sellers may agree to concessions. Your contract controls the final allocation.

How to get a precise estimate

You can move from ballpark figures to a near-final number early in the process by asking for the right documents and quotes.

What to request

• From your lender: A Loan Estimate within three business days of application. After approval, you will receive a Closing Disclosure with final numbers. See the CFPB guide to the Loan Estimate and Closing Disclosure.
• From the title company or settlement agent: An itemized estimate that includes title premiums, deed tax, recording fees, prorations, and any payoffs. Sellers can request a net sheet.
• From the HOA or condo manager: The estoppel letter fee and timing, plus any known assessments.
• From your insurance providers: Homeowners, wind, hurricane, and flood quotes to estimate prepaids and escrows.

Smart questions to ask

• Who is paying the owner’s title insurance in this deal based on local custom and the contract?
• Will the seller pay the deed documentary stamp tax here, or is that negotiated differently?
• What are the exact title premiums for both owner and lender policies at this price point?
• Are there HOA or condo estoppel fees, and who covers them per the contract?
• If I am financing, how many months of insurance and taxes will the lender collect at closing?

Quick steps to get numbers

1. Share the property address, purchase price, target closing date, and whether it is cash or financed with your lender and title company.
2. Ask for an itemized Closing Cost worksheet (buyers) or a Seller Net Sheet (sellers).
3. Confirm state taxes up front. The deed tax rate and the mortgage intangible tax are set by Florida law through the Department of Revenue.
4. If a condo or HOA is involved, order the estoppel right away to avoid rush fees.
5. Get insurance quotes early. In the Keys, premiums can materially change your cash to close.

When you want a smooth, concierge-style path to closing, local guidance matters. If you would like help building a clear, customized estimate and coordinating the right vendors, connect with Holly Ann Burger for a Key West focused plan.

FAQs

How much should a Key West buyer budget for closing costs?

• Buyers commonly budget 2% to 5% of the purchase price for closing costs, not including the down payment. Cash buyers are often on the lower end since there are no lender fees or mortgage taxes.

Who usually pays for the owner’s title insurance in Monroe County?

• It is common for the seller to pay the owner’s title insurance premium in Florida, including Key West, but it is negotiable and should be defined in the contract.

What is Florida’s documentary stamp tax on the deed?

• The deed tax is $0.70 per $100 of consideration. This amount is often paid by the seller, subject to the contract.

Do cash buyers avoid the mortgage intangible tax?

• Yes. The intangible tax applies to new mortgages at 0.2% of the loan amount. Cash purchases do not incur this tax and avoid lender fees.

What is an HOA or condo estoppel letter, and who pays it?

• The estoppel letter confirms association dues and status. In Florida, buyers commonly pay the estoppel fee, though contracts can assign it differently.

Why are prepaids and insurance escrows higher in the Keys?

• Wind, hurricane, and flood coverage often cost more in coastal markets like Key West, which increases the insurance escrow your lender collects at closing.

When will I see my exact cash to close or seller net?

• Buyers receive a Loan Estimate shortly after applying and a final Closing Disclosure before settlement. Sellers can request a detailed net sheet from the title company early in the process.