A warranty deed in Palm Beach County includes documentary stamp tax. If the property sold for $450,000 and the documentary stamp tax rate is $0.70 per $100 of consideration, what is the total documentary stamp tax due?
Correct Answer
A) $3,150
A is correct. The calculation is: $450,000 ÷ $100 = 4,500 taxable units × $0.70 = $3,150. B is incorrect due to mathematical error in the calculation. C is incorrect because it appears to be missing a zero in the final calculation. D is incorrect because it fails to apply the tax rate properly.
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In a Tampa transaction, a buyer wants the Florida rule on owner's versus lender's coverage. Which statement is correct?
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A general warranty deed contains a scrivener's error in the legal description, transposing two numbers in the lot number. The correct lot is clearly identified by the street address, and the parties' intent is obvious. What is the most likely outcome?