When real estate is transferred in Florida, real estate transfer taxes (often known as deed recording taxes) are charged. Unlike annual real estate property taxes, transfer taxes are applicable only once when a property changes ownership. It is useful for home buyers and sellers to be knowledgeable on what a transfer tax is and how much it may impact closing figures. This article offers an overview of Florida real estate transfer taxes and who pays them.
Florida Real Estate Transfer Taxes and Who Pays Them
The transfer of real property means a grant, sale, exchange, assignment, quitclaim, contract for sale, or other conveyance of ownership in title to real property. In Florida, sellers must pay real estate transfer taxes. The sum of Florida real estate transfer taxes is based on the market value of the piece of real estate and the tax rate of $0.7 per hundred. It is levied as part of closing costs for sellers and is ordinarily required before the deed files. The determination of the tax is usually the task of the closing agent and is detailed on the settlement statement.
An Overview Of Florida Real Estate Transfer Taxes
The amount of tax due is based on the applicable rate on the day that a closing takes place and the deed is recorded. From time to time property taxes can increase. Proposed increases are generally opposed by property owners. Ask a real estate agent for applicable updates on tax rates. You should also consult your accountant on whether real estate transfer taxes are deductible on your federal and/or local tax return. An overview of Florida real estate transfer taxes and who pays them, as provided above, is strictly general information. Contact Sonny Solomon at The Keyes Company by calling 561-247-1047 or emailing sonny@sonnysolomon.com with any questions.
