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Buying a Government Owned Home in Central Florida? If So, Be Prepared to Pay

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

Posted by LaShawn Norden, REALTOR, (321) 377-0157 Your Real Estate Advocate in Florida on 04/24/2009 09:56 PM

Comments (5)

Foreclosures in the Home Buying Channel

fannie mae, freddie mac, buying a home, foreclosures, central florida, seminole county, lashawn norden, closing costs

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5 Comments on Buying a Government Owned Home in Central Florida? If So, Be Prepared to Pay

APR

LaShawn,

Is the documentary stamp(s) a transfer fee and has it always been that high?

Wow LaShawn that is quite a high fee. Is this something new or just not widely known?

Don~Yes, the documentary stamp(s) are a transfer tax. I've been in the real estate business for almost 8 years, and the rate has been the same for at least that long.

Paddy~This is not a new fee, just one that the Seller usually pays...which is why it can catch Buyers off guard when buying a Fannie Mae or Freddie Mac owned home in today's market.

For more information on transfer tax fees in Florida, I've included a link to the FL Dept of Revenue's site here.

APR

Hi La Shawn

We deal in a lot of Fannie properties in Michigan, what we do is ask for the seller to pay for those cost on the purchase agreement with an exact figure, maybe this will help

Good Luck

Hank Mendez

WEICHERT REALTORS-Excel

www.HankMendez.com

Hi Hank~ Thanks for the response. You are right, it seems as though the only way to get this fee paid by the Seller is to ask for it in "contributions" to closing costs...which is what I've been doing lately too! I appreciate you stopping by and commenting.

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