Does OK require the actual consideration to be in a warranty deed? Can one use a nominal consideration and then provide evidence to the clerk of the purchase price for the doc stamps?
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Does OK require the actual consideration to be in a warranty deed? Can one use a nominal consideration and then provide evidence to the clerk of the purchase price for the doc stamps?
Most warranty deeds just show actual consideration of something like $10.Quote:
Originally Posted by Motley
But purchase price determines doc stamps and real estate taxes.
So you can have "$10 and other consideration" in the deed, but then provide a copy of the purchase agreement to pay the doc stamps?
The county clerk told me that the deed must contain the actual full consideration amount and not a nominal amount and that they would not rely on the purchase agreement.
Most deeds read: "in consideration of the sum of $10 and other valuable considerations"...
I've never seen the purchase price stipulated in a deed.
That is exactly what I have experienced.
This clerk said it has to have the full amount. I don't have an issue doing so, but she is definitely wrong.
Most counties will accept an affidavit, signed by one of the parties, that stipulates to the purchase price.Quote:
Originally Posted by Motley
It's not the clerk's job to determine the appropriateness of a deed beyond that the deed identifies a particular parcel, particular parties, and it's entered into the database as what it is. They charge you for the pages you file and file it. That is their whole job. Determining the value is the entire job of the assessor. That clerk needs to stay in his or her lane.Quote:
Originally Posted by Motley
The oil and gas industry would riot if the purchase price was included on a deed. She has no idea what she’s talking about.
You can reverse engineer the Purchase Price from the Doc Stamp value, assuming the parties told the clerk the actual value paid.Quote:
Originally Posted by sooner88
Of course, you do have some unscrupulous folks in the oil business (mostly those who flip minerals) who inflate the doc stamp value.
Right, doc stamps are how a majority of people back into the purchase price but like you said it’s not always accurate. Having the purchase price stated on the deed would drive the mineral flippers crazy, not that it’s happening anywhere near the level it has been in the past.Quote:
Originally Posted by SouthOfTheVillage
I vaguely remember something about this in the news awhile back so went looking. This may or may not be current.
710:30-1-10. Duties and responsibilities of the county clerk County clerks are responsible for selling Documentary Stamps to the taxpayers and have the duty of accounting for the stamps to the Oklahoma Tax Commission. For the purpose of collecting the stamp tax, the county clerks act as agents of the Oklahoma Tax Commission. (1) Documentary stamps are to be purchased only from the county clerk of the county in which the realty conveyed is located. If the property being conveyed by the deed is located in more than one county, the stamps will be purchased from the county in which the original deed is filed. Certified copies of such deed, showing stamps affixed, can then be filed with the other county or counties where the property is located. (2) In order to make a correct determination of tax due, the county clerks have the duty to request taxpayers to produce satisfactory documentation which correctly discloses the value of the property. The total value of the consideration paid can be determined from a real estate purchase contract, closing statement, bill of sale, or any other documentation showing the total price of the property sold. (3) County clerks shall make sure that the Documentary Stamps are not sold over the counter. The stamps can only be sold when the tax is paid and the stamps affixed to the deed. Stamps are to be sold only when the deed is offered for recording. (4) County clerks shall make sure that the proper amount of stamps are affixed. Metering machines may not be used to collect an odd tax amount or, in other words, to collect an amount of tax that is not a multiple of .75 cents. Stamps worth .75 cents must be affixed for each $500.00 (or any fractional part thereof) of the consideration. When a metering machine is used, a single stamp can be printed for the total tax amount rather than attaching multiple stamps. However, whether a metering machine is used or not does not change the tax amount. Thus .75 cents is still required for each $500.00 of consideration or fractional part thereof. This can be illustrated by the following example: The selling price of Blackacre is $30,250.00. Based on this consideration paid, the deed will require 61 documentary stamps at 75 cents each, which computes to a tax amount of $45.75. It is improper to use a metering machine to calculate the tax on 60.5 documentary stamps, or $45.38. (5) If the taxpayer claims exemption from the payment of the documentary stamp tax, and there is no notation on the deed indicating the reason for the claiming of the exemption, the county clerk shall make a brief notation on the face of the deed indicating the reason for claiming the exemption.
https://www.ok.gov/tax/documents/rule3008.pdf