Does anyone know if you have to pay documentary stamps on properties that you take "subject to" existing liens?
My attorney is advising me that I must pay doc stamps on the amount owed on the existing mortgages if a property owner deeds their property over to me with the mortgages still outstanding.
In the State of Florida doc stamps are typically paid on the amount of money paid for the property (consideration for the deed). My attorney is telling me I must pay the 0.7% transfer tax on the amount owed on the property instead of the amount of consideration shown on the deed (I was going to put $10 on the deed).
This is a huge factor in my costs since 0.7% of a mortgage could be substantially more when compared to paying 0.7% on $10 of consideration listed on the deed used to convey the property to me.
Thanks in advance!