When is the Documentary Stamp Tax on Deeds required to be paid?

The Documentary Stamp Tax on Deeds is required to be paid upon deed transfers. This tax is a state-level tax imposed on the transfer of real property through a deed. When a property changes ownership, the deed that conveys the property must be recorded, and the Documentary Stamp Tax is assessed based on the sale price of the property at that time.

Understanding this process is crucial because it ensures that the proper legal and financial obligations are met during a real estate transaction. The tax is typically calculated at a certain rate per $100 of the sale price, and paying it is essential for the legal transfer of ownership to be completed and recorded.

In contrast, options involving property appraisals, title searches, or mortgage closings do not directly relate to the payment of the Documentary Stamp Tax on Deeds. The tax is specifically tied to the act of transferring the property itself, rather than activities associated with property valuation or financing.