What You Really Want to Be Familiar With Stamp Obligation Prior to Purchasing a Home
The Stamp Duty is a statutory requirement to buy a home. In some states, it is a requirement for the sale of a home to be completed before the buyer can take possession. The buyer will be required to purchase stamps, which are attached to the property deed. A buyer must purchase the stamps before closing on the property. If you are unsure of what the Stamp Duty is and how much you need to pay, consult with your escrow company, attorney, and state or county officials to determine if the sale will require the purchase of stamps.
Purchase of a house
While the documentary stamp tax is a standard closing cost, different properties are charged a different rate. Ensure you are familiar with the stamp obligation schedule in your jurisdiction before purchasing a home. You can consult your real estate agent or real estate lawyer to determine what kind of property is subject to documentary tax. While it may seem confusing to pay a hefty amount for a home, it’s essential to understand the impact of documentary stamp tax on the purchase of a house.
There are different documentary stamp tax rates for different types of properties. Before purchasing a home, you’ll want to make sure you understand how much you need to pay. In some cases, a seller may save the documentary stamp tax by amending the purchase agreement to remove the need for a mortgage. The documentation stamp tax is calculated on the value of the property. When you’re buying a home, it’s $0.70 per $100 of value.