Saturday, January 13, 2007

Documentary Stamps

The purchase or the sale of real estate in Florida is assessed a "Doc" stamp tax. Remembering that Florida has no income tax, doc stamps are one of the taxes we pay in this state as well as many other states I should mention.

The "stamps" are literally affixed to a deed in a real estate transaction. Both the seller and the buyer pay this tax - but not at the same rate.

Buyers pay $.35/$100 for new money (borrowed money) such as a mortgage. The stamps are not assessed on cash paid from the Buyer. The seller is charged $.70/$100 on the sale price of the transaction. In any deal, the payment of the "doc" stamps is negotiable.

The Buyer or the Seller can agree to compensate the other party for the stamps. It can be a last minute closing maneuver to see if one can enhance their position or it can be an upfront negotiation item. more...

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