The banks are continuing to pull the same kind of crap that caused this whole mess. They need to change their mindset and get a reality check.
Overly-Assessed Property Values in Florida -- a legal loophole in favor of gov't?
- Thread starter Smiling JOe
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The banks are continuing to pull the same kind of crap that caused this whole mess. They need to change their mindset and get a reality check.
Gee this couldn't be safety check since the majority population of Florida is retired people?
Scenario:
I'm old retired and most likely in the last house I'll ever own. I don't like paying all those high property taxes for things I don't use like schools. I own the house outright. I transfer the deed to my name only. I then "sell" the house to my wife for the low low price of $100.00. Tax that Florida!
It also seems to me that the purpose of the law is not keep prices artificially inflated, but to prevent a crash of property values. Let the prices drop from 2005/2006 highs to ealry 90's prices in a matter of 6 months. That won't cause properties to sell to prospective home buyers it will cause investers to buy up tracts of empty homes to rent, flip, or redevelop.
Scenario:
I'm old retired and most likely in the last house I'll ever own. I don't like paying all those high property taxes for things I don't use like schools. I own the house outright. I transfer the deed to my name only. I then "sell" the house to my wife for the low low price of $100.00. Tax that Florida!
It also seems to me that the purpose of the law is not keep prices artificially inflated, but to prevent a crash of property values. Let the prices drop from 2005/2006 highs to ealry 90's prices in a matter of 6 months. That won't cause properties to sell to prospective home buyers it will cause investers to buy up tracts of empty homes to rent, flip, or redevelop.
Doesn't Florida distinguish between "arms length" transactions and family transfers as you described? I assume that is what is meant by Qualified Sales and Unqualified Sales?
Yes they do.
Whoa, slow down with the complicated explanation.
We are undergoing our first DOR Doc Stamps Audit at this time and waiting to hear the result. It is based exactly on this Statute. I'll let you know the outcome.
Something I learned at the same time about that Statute: When a Lien is filed against a property the lienor is required to pay Doc Stamps for the value of the Lien. The DOR is treating a Lien as a security instrument like a mortgage.
I can tell you that I have attended quite a number of Statute 713 continuing education classes and the instructor/attorneys have never brought it up. There is no language in Chapter 713 that speaks to DOR and Chapter 201. It's not the Court Clerks fault, but no one there has ever considered this either with our 713 liens.
Any contractors out there ever paid Doc Stamps on a lien?
Something I learned at the same time about that Statute: When a Lien is filed against a property the lienor is required to pay Doc Stamps for the value of the Lien. The DOR is treating a Lien as a security instrument like a mortgage.
I can tell you that I have attended quite a number of Statute 713 continuing education classes and the instructor/attorneys have never brought it up. There is no language in Chapter 713 that speaks to DOR and Chapter 201. It's not the Court Clerks fault, but no one there has ever considered this either with our 713 liens.
Any contractors out there ever paid Doc Stamps on a lien?
Doesn't Florida distinguish between "arms length" transactions and family transfers as you described? I assume that is what is meant by Qualified Sales and Unqualified Sales?
For a complete explanation you should check out the true FS Chapter 201. Here are some of the main points.
Florida Documentary Stamp Tax
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This law will not affect property values. Do you mean Assessed Values?
Yes. Thanks.
Ever wonder how the Gov't built in a cushion regarding doc stamps on the deed, as we see people short selling? Here is a trick found in the rules. They still collect the doc stamps on the amount of the consideration forgiven.Some genius was working overtime to think up that one, long in advance of this market turning downward. Makes me wonder about the Property assessments, too, since I believe the "sales price" on the Property Appraiser's records are not the actual sales price, but the esitmated sales price, based on the amount of the doc stamps paid.
Not surprised at this one bit! There use to be a time when property taxes down there were more than reasonable, but not any more. Until the Walton County does something about the high tax rates, property is not going to sale. Who wants to buy property down there and get rapped over property taxes? The county needs to cut its budget by 50% and get property taxes down to sensible levels. The longer they "fiddle fart" around the worse things are going to get!