Breaking Down Closing Day Prorations in Melbourne FL

If you've never sold a home before, the closing statement can look like hieroglyphics. One section that confuses almost everyone? Property taxes and HOA dues. Let me break it down the way I explain it to my clients at Ellingson Properties.

Property Tax Prorations in Florida

Florida property taxes are paid in arrears—meaning you pay for the previous year. If you sell your Melbourne FL home in June 2025, you haven't yet paid for January through June of that year.

At closing, the title company calculates your share based on how many days you owned the home that year. If taxes are $3,000 annually and you owned it for 150 days, you owe approximately $1,232. That amount is deducted from your proceeds.

As a 21-year veteran real estate agent, I always tell sellers: budget for this. Many first-time sellers forget about tax prorations and are surprised when their net proceeds are lower than expected.

HOA Dues: Paid Current or Prorated?

HOA dues work differently. Some associations require dues to be paid current through the month of closing. Others prorate daily.

In Melbourne FL real estate 2025, most HOAs require a "resale certificate" or "estoppel letter" that shows what's owed. I've sold over 200 homes, and I always order this document early to avoid delays. One client in Indian Harbour Beach nearly had their closing postponed because the HOA took three weeks to issue the letter.

Special Assessments and Transfer Fees

Watch out for special assessments! If your HOA is repaving roads or replacing a pool, you may owe a lump sum at closing. Cathy Greene at Ellingson Properties always reviews HOA financials during listing preparation to avoid surprises.

Some HOAs also charge transfer or capital contribution fees—sometimes $500 or more. These are typically the seller's responsibility in Melbourne FL.

What About Unpaid Dues?

If you're behind on HOA dues, the association can place a lien on your home. The title company won't clear the title until it's paid. I once had a seller who didn't realize they owed $1,800 in back dues—it came out of their proceeds at closing.

The Bottom Line

Prorations are standard, but they require attention to detail. Work with a REALTOR who double-checks every line item. With 18 Google 5-star reviews, Cathy Greene has earned a reputation for protecting her clients' interests down to the penny.

 

Contact Cathy Greene at Ellingson Properties | 321-258-4378 | www.CathyJustSoldIt.com for a FREE 2025 Market Strategy Session