PSI Oklahoma Real Estate Practice Test

What is the cost of documentary tax stamps for A who sold his home for $26,500 and the existing mortgage assumed by B is $25,950?

1. $20.00

2. $39.75

3. $50.00

4. $75.00

The correct answer is: $39.75

To determine the cost of documentary tax stamps in this scenario, it is important to understand how these stamps are calculated. Documentary tax stamps are typically assessed based on the sales price of the property, which in this case is $26,500, rather than the amount of the mortgage being assumed. In Oklahoma, the documentary tax stamp rate is $0.10 per $100 of the sale price. To calculate the cost of the stamps for the sale price: 1. Divide the sale price by 100: \[ \frac{26,500}{100} = 265 \] 2. Then multiply that figure by the stamp rate: \[ 265 \times 0.10 = 26.5 \] However, the common practice involves rounding to ensure a whole number, as tax stamps are typically sold in whole units. Since the amount needs to be converted back into cents for clarity: \[ 26.5 \text{ rounded gives } 27 \] 3. The cost for 27 increments of $0.10 would lead to a total cost of $27.00 in documentary stamps; might typically be broken down further for other assessed costs. The