Stamp duty is levied by the government on specified documents and transactions. In most cases, it is levied on market value of property involved in a sale, exchange, gift or settlement. In this respect, any transfer or purchase of property must involve stamp duty payment. Generally, it is paid on or before the date of executing the purchase. The instrument is always written on plain paper and stamp duty paid through pay order within two months from the date of execution of the instrument.

 

It is a one-time-only fee paid by the person or entity that is purchasing the property. It is paid on the purchase of the property and in most cases, is not included in the mortgage. The amount of money one pays on stamp duty varies greatly, depending on where one lives and the price of the property. In general, properties with higher values attract high stamp duty charges.

 

In the past, stamp duty was actually the fee paid on real stamp. It was also the transaction that took place at the courthouse or at the office of the recorder when a piece of property changed hands from one person to another. Even though no one really stamps anything in the modern world anymore, the government still uses it as a form of taxation.

 

When asked about stamp duty, most people will tell you that it is a mandatory requirement you can't get around with. However, this is not always the case. In the past, people had no option but to pay the money they were told by the government. But this has since changed and there are companies one can use to work their ways through the loopholes.

 

There are several ways you can avoid paying stamp duty and save money on stamp duty, legally off course. For instance, if you are making your first home purchase, you can be exempted from paying stamp duty. If you can be totally exempted, then you will realize that your stamp duty will be considerably lower than someone who had a home before, even if you have the same type of property.

 

Secondly, you can also be exempted from paying stamp duty by designating your home as a residential rather than a commercial property. By changing the manner in which you use the property, you may end up saving considerable amount of money by paying less stamp duty charges. Even though there are options out there to avoid paying stamp duty, only a qualified stamp duty consultant will be able to advise you on the available options. More information about stamp duty here!