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Getting out of paying doc stamps

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mikentosh

Member
Mike In Florida. How to avoid paying doc stamps on a quite claim? I transfered our house title to my wife. Due to new circumstances: rugular absense due to work, having a new baby and my mother coming to live with us, we felt it was necessary to ensure my wife has control over the house. However, the title company which assisted us in the title transfer did not inform us that there would be a doc stamp Florida state cost to transfer the title to my name. The title company only told us the cost to record the document. Now I have a $2k fee that I cant pay.

I'm about to send a dispute letter and cite: Florida Supreme Court’s decision in Florida Department of Revenue v. De Maria, 338 So. 2d 838 (Fla. 1976), in which the court defined “purchaser” under the statute as “one who obtains or acquires property by paying an equivalent in money or other exchange in value. The court would note we paid nothing for the transfer of the property and ownership essentially remained the same and state doc stamps are not due. The transfers were mere book transactions and were not sales to a purchaser as contemplated in the statute. The Second District reversed the Florida Department of Revenue’s final order.

I need some legal advise here how to get out of this mess.
 


mikentosh

Member
Yes, forgot to mention that. There is a $285k mortgage. Honestly I also thought it would help with homestead exemption since my name is on another Florida house and they only allow one.
 

Zigner

Senior Member, Non-Attorney
Then you must pay the tax based on the mortgage balance remaining. Refer to the web site I gave above. The rate of tax appears to be 70¢ for every 100 dollars that is left on the mortgage, or $1,995.00.

Why did you feel the need to transfer the property?
 

Zigner

Senior Member, Non-Attorney
I also want to reiterate that this tax does not apply to "purchases", it applies to "transfers of interest".
 

mikentosh

Member
Yes, I know that now but we were not told that by the title company that did this for us. It's not a purchase and we just bought this house and just paid doc stamps on this. I also legal precedence has already been made regarding this.

I need some legal advise.

Again we did this for the reasons I mentioned.
 

Zigner

Senior Member, Non-Attorney
Yes, I know that now but we were not told that by the title company that did this for us. It's not a purchase and we just bought this house and just paid doc stamps on this. I also legal precedence has already been made regarding this.
It doesn't have to be a purchase - look at the web site I posted.

I need some legal advise.
My legal advice would be for you to find a way to pay the tax you owe.

Again we did this for the reasons I mentioned.
Your reasons, quite frankly, are nonsensical. I'm asking for the real reason(s).
 

Zigner

Senior Member, Non-Attorney
May I suggest that you contact the taxing agency and inquire about a payment plan?
 

HRZ

Senior Member
Many a FL real estate attorney might better know what I s exempt or not exempt post DeMaria ...and consideration may involve changes in the mortgage obligation and that triggers the tax ......and I'd be a little nervous about your reasons for the change ..it might read like you want to get two two homestead exemptions in FL but really have but one household. .. ( with transfer taxes into 4+ % range up north , some of this stuff invites very careful legal review ..and a bit of legal art to minimizing transfer taxes
 

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