Deed clarification

[skierrob]

I purchased a resale recently. When I got my deed the other day, the deed stated that I purchased the OKW property for $10. When I asked the escrow company, they said this was standard -- that Florida prohibits deeds from showing the true purchase price.

My worry was that I would be impacted tax wise if I sold the property 15 years from now, and the deed showed me paying $10 for a property that I purchased for a lot more than that.

Does anyone else here that's purchased resale have similar language in their deed?

Thanks,
Robert

 

[rlovew]

I know that when we bought an actual piece of property(no buildings) in Florida they had us record it as $100. So I do that it is fairly standard practice.

 

[drusba]

What the deed says has nothing to do with later determination of gain on resale (what you actually pay determines that). It is very common for deeds to simply state a nominal amount despite much higher actual purchase price. You can just chalk it up to legal traditon. Legally you pay for the purchase of the property interest via your contract to purchase and the providing of a deed is just something added for a stated nominal value and necessary for providing a public record of completion of the transfer.

 

[disneynutz]

$10 is what it probably be worth when you decide to sell, so the got it right!

Sorry... I couldn't resist.

Bill