Whenever you buy or sell a piece of real property, the transaction, like most things in life, is taxed. In Florida, this particular tax is referred to as the documentary stamp tax, or doc stamp for short.
Doc stamps are paid at closing, and it’s typically the seller who takes on the cost, unless otherwise negotiated in the contract. This can sometimes cause sticker shock if the seller was not made aware of this additional fee beforehand, which is why at Title Junction, we make sure to breakdown the costs for our clients so all parties stay well-informed.
The amount paid varies depending on the county, with the tax being levied at the rate of $.70 per $100 in Lee County. That means if the property sold for $400,000, the doc stamp fee would be $2,800, not including additional recording fees.
You can use Lee County’s Deed Calculator to determine your Doc Stamp fee by entering the sale price into the Deed Consideration box.
It should be noted that there are certain instances where doc stamps don’t apply to transfers of property, such as adding a spouse to the deed as an owner. But for your average home sale, expect for there to be transfer taxes. If you are unsure of your specific situation, talk to your real estate agent or attorney to find out if there will be doc stamps involved.
At Title Junction, we care about helping you stay informed throughout your real estate transaction. The experts at our title company have extensive knowledge about real estate not only in Cape Coral and Fort Myers, but all of Florida as well.
Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: How Can I Find Out Info About My Credit History?