Who Pays Doc Stamps on Homes in Longboat Key?

Who Pays Doc Stamps on Homes in Longboat Key?

How This Works in Florida Specifically

In Florida, the documentary stamp tax is governed by the Florida Department of Revenue and must be paid to the county clerk at the time the deed is recorded. For Longboat Key, which spans both Sarasota and Manatee Counties, the standard statewide rate applies: $0.70 per $100 (or fraction thereof) of the total consideration for the deed. This is set by the Florida Department of Revenue and is not negotiable unless the parties agree to a different split in the contract. Miami-Dade County is the only exception with a different rate, but Longboat Key uses the standard rate.

We met Eric two months ago when we decided to sell our wonderful condo on Longboat Key. It was an incredible experience. We met with Eric and Mike Renick on a Tuesday evening in our condo. After discussions, we signed our listing agreement. Woke up the Wednesday morning to see our listing up on MLS. Thursday, Eric brought his photographer for pictures. First showing two days later. Offer three days later. Final signed contract next day. Eric was on top of everything. Nine days after final sales contract was signed buyers inspected property. Three weeks later property closed. Thirty days between final contract and closing. Eric was proactive and kept all parties in the loop through closing. We would definitely engage him again and highly recommend him to anyone interested in buying or selling property on Longboat Key.

– karlpond, Zillow Review

How This Is Typically Negotiated

In almost every Longboat Key transaction, the seller pays the doc stamps on the deed, while the buyer pays doc stamps on any mortgage or promissory note. This is so standard that most agents and attorneys don’t even discuss alternatives unless one party pushes for it. However, the contract can override this default – I’ve seen buyers agree to cover all doc stamps to win a bidding war, or sellers insist on a split in a slow market. If you don’t spell it out in the contract, the local custom (seller pays deed, buyer pays mortgage) will control, and the closing agent will enforce it.

Exceptions and Variations

There are a few exceptions to the standard rule. If the property is transferred as a gift with no consideration (such as between spouses or as part of an estate), doc stamps may not be due. If the buyer assumes an existing mortgage, the tax is calculated on the amount of the mortgage assumed plus any cash paid. In rare cases, parties negotiate a different split, especially in distressed sales or unique deal structures. Miami-Dade County has its own rates, but this does not apply to Longboat Key.

Standard vs. Exceptions

What This Means for Your Specific Transaction

If you’re selling a home in Longboat Key, expect to pay the doc stamps on the deed – this is a non-trivial closing cost that can run into the thousands, especially with luxury properties common on the island. I once had a seller who didn’t realize this until the closing disclosure arrived, and it nearly killed the deal because they hadn’t budgeted for a $14,000 deduction from their proceeds. If you’re a buyer, you need to know whether you’re being asked to cover more than the norm – sometimes sellers try to shift this cost in a competitive market. The only way to avoid an expensive surprise is to clarify this in your contract and review your closing statement line by line.

We could not have been more pleased with Eric Teoh and Mike Renick during our search and recent purchase of our home on Longboat Key. These guys are a breath of fresh air in today’s business environment operating with “old school” business practices Should we require a realtor in the future we would certainly engage them again. Len & Ann Cincinnati, Ohio

– zuser20170122200015417, Zillow Review

Questions Clients Actually Ask

What if the seller refuses to pay the doc stamps?

If the seller refuses, the deal can stall or collapse unless the buyer agrees to cover the cost or the parties renegotiate. The closing agent will not record the deed without payment, and the property cannot legally transfer.

Can the buyer and seller split the doc stamp cost?

Yes, the buyer and seller can agree to split the doc stamps any way they like, but this must be clearly stated in the contract. Otherwise, the default is seller pays deed stamps, buyer pays mortgage stamps.

Are doc stamps ever waived for primary residences or first-time buyers?

No, Florida does not waive doc stamps for primary residences or first-time buyers. The only exemptions are for certain transfers with no consideration, such as between spouses or as gifts.

What To Do Right Now

Before you sign a contract, review the closing cost section and confirm – line by line – who pays the doc stamps on both the deed and any mortgage. If it’s not crystal clear, you could be on the hook for thousands.

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