If you are considering buying a home in Central Florida that is owned by a government entity such as Fannie Mae or Freddie Mac, you need to be prepared to pay the documentary stamps on the deed as part of your closing costs at the time of settlement.
In a traditional sale, the FAR/BAR contract (both the FAR/BAR8 and the FAR/BAR AS-IS contract) specify that the Seller pay the documentary stamps on the deed unless otherwise noted in an Addendum and agreed upon by both parties.
With that being said, because Fannie Mae and Freddie Mac (otherwise known as the Seller) are not permitted by law to pay this fee, properties that are owned by them WILL have a clause in their required Addendum that states that the Buyer must agree to pay this expense.
In Florida, the cost of Documentary Stamps is 70 cents per $100 of the sales price...which could add $1,400 to the Buyer's closing costs for a home priced at $200,000.
While some Buyers may not mind paying this additional fee, others have a limited amount of cash to apply to their closing costs. To prevent any last minute need to break into the piggy bank, Buyers can always ask the Seller to contribute a flat amount or a percentage of the sales price towards their closing costs. Depending on the offer, the Seller may agree to the contribution, which makes it a "win-win" situation for both parties.
For additional tips on how to structure an offer on a governement or bank-owned property, call or text me at (321) 377-0157 or email me at LaShawn@LaShawnNorden.com
LaShawn Norden, PA, REALTOR, RE/MAX Central Realty, (321) 377-0157, LaShawn@LaShawnNorden.com, www.LaShawnNorden.com
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