Orlando Mortgage Blog

Changing the deed to your Florida real estate?

January 15th, 2008 1:46 PM by BILL WILBANKS

It has recently come to my attention that state auditor's have recently been contacting some folks that added or deleted someone from the Warranty Deed within the last several years (most recently three years prior to the call) to inform them of additional Documentary Deed Stamp Taxes due the State of Florida from that earlier transaction. Why? Well apparently some property owners had deeded out to add or remove someone from the Warranty Deed and done it for reasons such as "Love and Affection" and therefore paid only minimal deed stamp taxes ($10.00 let's say). That is correct as long as the property is free and clear (no mortgage). However, according to the State of Florida if there was a mortgage or mortgages on the property at the time of the re-deeding of ownership (parent and son to the parent alone or a husband added a spouse to the deed), the minimum documentary stamp taxes due on the deed would be based on the amount of the mortgage(s) in place at the time of the transaction. So, let's say there was a $100,000.00 mortgage in place when the deed ownership was changed.  Instead of the original $10.00 paid and accepted by the county, based on "Love and Affection", the correct tax that should have been paid was $100,000.00 x .007= $700.00. The amount now owed to the state is $690.00. Penalty and interest can be added, but prompt payment may nullify additional monies required by the state. At least ask. Thought you'd like to know...

Bill Wilbanks /  www.OrlandoMortgageMasters.com


Posted in:General
Posted by BILL WILBANKS on January 15th, 2008 1:46 PM


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