Why does a warranty deed show Ten Dollars 10.00 cash in hand paid versus the actual amount of the property sale price?

Answer 1

Deeds in many, if not most, state do not recite the actual sales price. Instead, they simply recite "for $10.00 paid and good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged." In part, the reason is because that is the form that the recorder's office expects to see. It may also be viewed as a privacy thing, where people don't want others to know directly how much they paid or received for a given property. The actual sales price is agreed upon, and paid in advance of, signing the deed. After the agreed purchase price is paid, then the deed is signed.

Many if not most places require the buyer to pay an excise or recording fee based upon the statement of actual consideration paid (a separate form not recorded with the deed). For example, in New Hampshire it is presently $15 per thousand, so if there are tax stamps shown on the recorded deed for $150, then the property was sold for $10,000. so merely stating "$10.00 paid" in the deed does not provide a basis for the buyer to avoid paying the full tax amount owed.