Bulletin: FL2008008

Date:
August 14, 2008
To:
All Florida Issuing Offices
RE:
Computation of Documentary Stamp Tax on Short Sale Transactions

Dear Associates:

There has been some uncertainty regarding the proper computation of documentary stamp tax when the transaction involves a "short sale." Consequently, Stewart Title Guaranty Company sought an unofficial opinion from The Department of Revenue. Attached is a copy of a letter from Myra P. McKown, Tax Specialist II, in response to our inquiry.

Although Stewart Title may not necessarily agree with the Department's interpretation of Section 201.02(1), Florida Statutes, we suggest that you follow the guidelines set forth in the Department's letter.

Please contact a Stewart Florida underwriter if you have any questions concerning this topic.


Letter from Myra P. McKown Regarding Short Sale Transactions (Click to View)


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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
FL2008002 Short Sale Transactions
 
SLS2008005 Short Sale Transactions
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None