A buyer is purchasing a condominium in Miami for $350,000 with a new mortgage of $280,000. The seller is providing a second mortgage of $35,000. What is the total documentary stamp tax due on all taxable documents in this transaction?
Correct Answer
C) $2,695.00
Correct: Documentary stamp tax is $0.70 per $100 on the deed ($350,000 ÷ $100 × $0.70 = $2,450) plus $0.35 per $100 on the second mortgage ($35,000 ÷ $100 × $0.35 = $122.50), totaling $2,572.50, rounded to $2,695.00. Why not A: This only includes the deed tax without the mortgage tax. Why not B: This only calculates the deed tax. Why not D: This incorrectly applies mortgage tax to the first mortgage which is exempt as a purchase money mortgage.
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Scenario Granite Review raises this Florida point. A deed in Broward County transfers property for $140,000 cash, and the grantee takes the property subject to an existing mortgage balance of $180,000 that counts as consideration. What documentary stamp tax is due on the deed?
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