A real estate agent is a qualified individual who works with both buyers and sellers to buy or sell real estate. Clients receive assistance with property searches, market research, offer negotiation, and transaction management. The majority of the time, real estate agents are paid a commission based on the sale price.
A closing agent, sometimes referred to as an escrow agent or settlement agent, is an impartial third party who manages the transaction’s final steps. Their principal duty is to make sure that the transaction is carried out in line with the terms of the contract and any relevant laws. They handle the transfer of money and title, prepare the closing papers, work with the lender. It’s vital to keep in mind that in some places, like Florida, the same person can serve in two capacities simultaneously: as the closing agent and as the real estate agent. However, they must declare this dual function to all parties engaged in the transaction.
The price of title insurance in Florida varies depending on the insurer and the value of the property. The premium rates, which are determined by the property value, are capped by the state of Florida. For a property worth $100,000, for instance, the premium rate is $5.75 for every $1,000 of value, for a total premium of $575.
Documentary stamp tax, sometimes referred to as transfer tax in Florida, is imposed on the price paid for the transfer of real estate. For Miami-Dade County, the cost is $0.60 per $100 of consideration, or $0.70 per $100 overall. For instance, the transfer tax would be $2,100 if the property’s sale price was $300,000.
In Florida, a title company will issue a title commitment outlining the terms and circumstances under which they will provide title insurance. A summary of the title search, any problems or flaws discovered, and any conditions that must be satisfied before the insurance may be issued are all included.
In Florida, title insurance normally remains in effect for the duration of the owner’s or the owner’s heirs’ ownership interest in the property. This indicates that the protection does not end with the sale of the property and offers defense against any potential future flaws or claims.
In conclusion, despite the fact that they serve different purposes in the real estate transaction process, closing agents and real estate agents are not interchangeable. It is crucial to understand the costs of title insurance and transfer tax, as well as the details of the title commitment and the duration of the title insurance, whether purchasing or selling a property in Florida.