The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-07-14

Aue Stamping OF OocumeuCS
There appears to exist an extraordinary
lack of understanding as to the require
ments of the new war revenue bill which
went into effect on the LIST instant; partic-
ularly as to the provisions of II relating to
the stamping Of documents.
The provision which, more than any other,
appears to have created perplexity and Sc
riously engaged the attention Of legal minds
In Its correct Interpretation and proper ap-
plication, is the following:
Conveyance, deed, instrument or writing
whereby any lands, tenements. or other
realty sold shall be granted, assigned, trans
IN the purchaser or purchasers, or any
other person or persons. by his, her,
or their direction, when the consideration
or value exceeds one hundred dollars and
does not exceed five hundred dollars, fifty
cents; and for each additional five hundred
dollars or fractional part thereof In excess
of five hundred dollars. fifty cents"
1t has been, and for the matter Of that, 1t
still ,is the custom In making transfers Of
property for the parties frequently to state
a fictitious consideration, sometimes above
and often below the real amount. The IA
vorits plan where 1t IL desired to keep the
true amount from the public 10 to insert a
nominal consideration Of from one dollar to
ten dollars.
Under the law Of California there Is no ne
cessity for stating consideration IN deed.
a sufficient form Of grant deed" being pre-
scribed In the code.
The statement that the real value" must
appear in transfer is nowhere made re-
quirement either Of the federal or state law.
Neither is the recorder inhibited from filing
and recording any deed rendered to him
with his fees for filing the same. He may
In the exercise of his discretion point out
defect, and caution the parties as to the
provisions of the stamp tax law. but ne is
under no penalty for filing an unstamped
or insufficiently stamped deed.
The penalties are made to attach to the
parties who try to avoid the payment Of
the proper stamp tax, and the further PEN
atty is decreed that such instrument. docu-
ment or paper not being stamped according
to law shall be deemed invalid and Of no
effect"
The latter provision is copied from the
law of 1868 and there are grave doubts
whether or not congress has transcribed
its powers In attempting to decree the in
validity Of a contract that would be other
wise good under the laws of the state where
It was executed. This question: of consti-
nationality may have to be passed upon
soon.
The prohibition in section IA against ad-
hitting as evidence in any court docu-
m6nL unStdmpeQ OF luSuNIClenlly stamped,
has been held to be limited to courts Of fed
eral jurisdiction and is not an attempt to
interfere with the laws of evidence as es-
tablished by the states themselves.
The requirements for stamping according
to the consideration or value mot consider
alton of value" as set forth in a local
daily is evidently intended to cover those
cases where nominal consideration Is
used to conceal the true one. The deed.
then, must be stamped according to the
true consideration that passes between the
parties, no matter what amount. or whether
no amount at all. is recited In the docu-
ment itself.
No machinery Is provided for determin-
ing the value" Of piece Of property the
consideration for which is not disclosed in
the deed. The recorder Is not judicial
officer to decide such matters. and the ques-
ton of insufficient stamping may therefore
possibly not be disputed until long after the
recording Of document, coming to the
front perhaps In some litigation common
to the titles of real property.
One point In connection with this matter
cannot be too strongly urged and that is
the application of the motto caveat emptor.
It Is for the purchaser to look out sharply
that the deed which he is asked to accept
is stamped according to the true intent and
meaning Of the law. This Is as important
to him as any other link in his title mad
should be most carefully looked after even
II 1t involve the vendor In a few dollars OF
extra expense.