QUESTIONS: Rising home values can torpedo mortgage assumptions. The following terms and phrases when used in these regulations and in the interpretation thereof, shall have the meaning ascribed to them as follows: (1) “Domicile and Residence” – For the purpose of these regulations the two terms are synonymous. In 2006, the Florida legislature repealed most parts of the tax effective January 1, … Note: The above calculations do not include Service Charges as described in Florida Statutes. The recording of this Agreement on the Public Records shall evidence . The main reason to take out a home equity loan is that it offers a cheaper way of borrowing cash than an unsecured personal loan. Copyright © 2011 State of Florida. Is a Florida documentary stamp tax payable by the prospective purchaser of the house previously financed with the federal lender a valid charge under Florida law? . Where a note, bond, or other obligation upon which a nonrecurring tax has previously been paid is refinanced with the original obligee or its assignee: No additional nonrecurring tax is due if the principal balance of the new obligation is less than or equal to the unpaid principal balance of the original obligation, plus accrued but unpaid interest, as of the refinancing. Tax calculation: 37,000 (number of taxable units representing each $100 or portion thereof of the consideration of $3,700,000) x $.70 = … Thus, I am of the opinion that a fee of 1 percent of the assumed mortgage balance is not per se unreasonable and would not be usurious if levied for necessary services actually rendered by the association. The two mill nonrecurring tax imposed by s. 199.032(2), F. S., though initially more than the annual one mill intangible tax imposed by s. 199.032(1), will be a substantially lesser tax burden over a period of a few years. The other tax is called nonrecurring intangible tax and is an ad valorem tax on the ownership of the obligation secured by the mortgage. The rate is 0.35 percent of the amount secured rounded up to the nearest $100. — (1) Any mortgage, deed of trust, or other lien given to replace a defective mortgage, deed of trust, or other lien, covering … . "A mortgagee is powerless to prevent a purchaser's assumption of the mortgage, and his consent thereto is not necessary, and such an agreement is binding between the grantor and the grantee from the moment of its execution; but the mortgagee cannot be compelled, without his consent, to accept an assumption of the debt by the purchaser of the mortgaged premises, and the contract inures to his benefit only after his acceptance thereof." However, such a fee must be reasonable in relation to the services rendered and if unwarranted by the services rendered may violate the usury law. Transfer taxes are added to the cost of your home and reduces gain on the future sale. (Emphasis supplied.) to the assumption of the Mortgage and not as interest for the forbearance or use of money. While this practice has waned in popularity in the 21st Century, it is still a procedure that may still be available to homeowners. The Savings Association Act, s. 665.401, F. S., in particular also recognizes the propriety of certain charges. Chapter 199 INTANGIBLE PERSONAL PROPERTY TAXES Entire Chapter. It is the duty of this office to collect the required documentary and intangible taxes on documents such as deeds and mortgages. Your question is whether a federal savings and loan association can charge the purchaser a fee of 1 percent of the mortgage balance with a $100 minimum before approving the assumption of a loan by the purchaser. No additional nonrecurring tax shall be due upon the assumption of a note, bond, or other obligation for the payment of money if a nonrecurring tax has previously been paid and the amount of the indebtedness remains the same, whether or not the original obligor is released from liability. If the original obligor is not liable to the obligee under the new obligation, the additional nonrecurring tax shall be computed on the entire principal balance of the new obligation; otherwise, the additional nonrecurring tax shall be computed on the excess of the principal balance of the new obligation over the principal balance of the original obligation, plus accrued but unpaid interest, as of the refinancing. . Chapter 199, Florida Statutes (F.S. Major taxes collected in Florida include sales and use tax, intangible tax and corporate income taxes. [(See) 59 C.J.S. Bonds (original issuance); 4. There are no statutes or regulations prohibiting a federal savings and loan association from charging a purchaser a 1 percent fee with a $100 minimum for the assumption of a mortgage. Transfer taxes are added to the cost of your home and reduces gain on the future sale. b. The State tax on deeds applies to the full consideration and the value of any mortgage may not be deducted in computing the consideration. . They are not allowed to be deducted as part of the real estate property tax on your tax return. Additional nonrecurring tax is due if the principal balance of the new obligation exceeds the principal balance of the original obligation, plus accrued but unpaid interest, as of the refinancing. Miscellaneous Tax Chapter 12B-4. (Emphasis supplied.) -- the closing of the transaction described herein. If the required approval and consent of the lender that is stated in your request is indicative of novation which would release the original mortgagor and substitute the purchaser, then such a charge would be similar to an initial charge and would not appear to be unreasonable or usurious. I am informed that it is customary among Florida lenders to charge about 2 percent of the mortgage loan for services rendered in approving and closing a loan. Realty located in and out of Florida as well as personalty located in and out of the original is. Transactions Florida Administrative Code Department 12 recorded within 30 days after creation of obligation ( Chapter 199, Florida )! Value of the obligation secured by the Association from the list below dollars. Valorem tax on deeds applies to the following: 1 well as personalty in. The proceeds to pay ; 2 federal savings and loan associations by s. 665.511, F. s. '' loan. 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