Are you familiar with Doc Stamps in Florida?

If you are from another state and thinking about purchasing property in Florida, you might want to know about doc stamps or "Documentary Stamp Tax".

In Florida, "doc stamps" refer to a type of tax that is assessed on certain documents when they are recorded. The tax is based on the value of the property or transaction that is being documented and is typically a small percentage of that value. Examples of documents that are subject to doc stamps include deeds, mortgages, and certain types of contracts. The revenue generated by doc stamps is used to fund various state and local government programs and services.

For example, the doc stamp fee in Lee County, Florida on a property sold for $425,000.00 is calculated as follows:

$0.70 per $100 (or portion thereof) of the total consideration or value of the property.

To calculate the doc stamp fee: $425,000 x 0.007 (0.7%) = $2975

So, the doc stamp fee on a property sold for $425,000.00 in Lee County, Florida would be $2,975.

The title company will prepare the documents and the doc stamp fee will show up on your closing statement.

In Florida, the person or entity that is recording the document is typically responsible for paying the doc stamp fee. This means that the buyer of a property would typically pay the doc stamp fee on a deed, while the borrower would pay the fee on a mortgage. However, it is not uncommon for the buyer and seller or the borrower and lender to agree to split the cost of the doc stamp fee as part of the overall purchase or loan agreement.

In some cases, the parties may include the doc stamp fee as part of the closing costs of a property sale or mortgage refinance, which would be paid by the buyer or borrower.

It's worth noting that the way the cost of doc stamps is handled can vary depending on the specific transaction, the parties involved, and the terms of the agreement.