Let’s understand which real estate taxes are typically indicated in Section E.
Your taxes and government fees can be found in Section E of your Loan Estimate or Closing Disclosure. To better understand the topic, I will ask Krista a few questions about the taxes in this section. Who collects them – the federal government, title companies, or lenders?
👩 These taxes are imposed by the state of Florida and are calculated through a formula provided by the state. They are specified in Section E and referred to as Documentary Stamps Tax and Intangible Tax. I explain these fees to the state as a means of compensating for the absence of a state income tax. Therefore, the state needs to generate revenue for the budget through alternative means, and a significant portion comes from real estate transactions in Florida. If you require a specific formula for calculating these taxes, you can contact me or check your county’s website.
Krista DeStefano
👩🏼 I recommend giving Krista a call as it will be the quickest and most effective solution. It’s best to connect with a real person and obtain accurate information.
👩🏼 Can you negotiate to reduce real estate tax expenses?
👩 No, as I mentioned earlier, these taxes in Florida are set by the state and are calculated using a specific formula based on the mortgage amount. Therefore, taxes are levied on the mortgage loan, which will be registered in the state system to be valid.
However, there are some mortgage programs that exclude the Intangible Tax. As far as I know, these are certain programs that provide assistance for the down payment.
👩🏼 Thus, taxes in real estate transfer are regulated by the state through a standard formula dependent on the mortgage amount. However, there are exceptions in certain programs that can help reduce tax expenses. We will prepare a separate video discussing the exceptions to this rule.
If you need further information purchasing real estate in Florida, or if you would like to discuss your specific situation, please feel free to call us now at 407-970-8245. We are ready to answer all your questions and assist you. Your decision to purchase a property deserves expert attention, and we would be delighted to help you. Don’t hesitate – pick up the phone and let us know how we can assist you!
Natallia Mann
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Note: This blog post is intended for informational purposes only and should not be considered as tax, legal, or financial advice. Consult with a qualified professional for personalized guidance.
