Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-12-09
WAR TAX ON DEEDS
WILL PUT REALTY
VALUES ON RECORD
Brokers Express Divergent
Views on Advisability of
Publicity Enforced by
New Revenue Measure.

A great deal has been said in regard
30 the advantage and disadvantage Of
having the price shown in transfers OF
real estate by the 50-cent internal revenue
stamp which. under the new law, must
be attached TO the deed for every $500 or
equity which is conveyed. II the property
is sold clear, this applies TO the whole
amount: if there IL a mortgage upon IT,,
the tax must be paid upon the selling
price less the amount Of the mortgage.
In any event, by the examination Of the
record at the Recorder Of Deeds, includ-
ing that Of mortgages, the price paid can
sa-ly be determined.
CONCEALED PRICES.
For many years many brokers, often
under direct instructions from clients,
have avoided putting the consideration or
selling price in the deed, and frequently
II has been made a part Of tho agreement
Of sale. This practice is not as a general
rule designed to mislead anyone; 1t may
come from the reason which has been
stated by prominent West Philadelphia
broker. who said in part:
1T believe It should be no more incum-
bent on purchaser of real estate to tell
what price he paid for It than II is for
him to disclose the cost of his clothes or
hat This disclosure of prices often works
considerable damage. For instance, a
man owning a house in a block of sim
liar dwellings is hard pressed for money
and for this or for other reasons sells his
q
value. This will inevitably have no ef-
feet on the price which It is possible to
obtain for other properties In the block"
Another broker said: "I have always
considered the purchase of real estate
MS much of a private transaction as the
purchase of merchandise" Another re-
marked: II have always believed II would
be better all round II the real price were
published. It would stop, for one thing
the faxed prices which are frequently
given out and prevent many crooked
deals. The mortgagee would have n safe
guide for investment, something which
might have the effect of rendering money
for mortgages more plentiful than 1t Is
at present"
The views of those quoted are entitled
to the greatest consideration.
For many years trust companies, and
as a general rule all persons acting for
others in fduclary capacity, such as
trustee, executor, etc, have insisted upon
the true amount at which a property is
bought or sold going into the deed.
The office of the Recorder of Deeds is
obviously a place where the deed is prop
srly entered as to its date, description,
signatures and acknowledgements. II the
proper amount was also put in the pro-
eeeding for today and for the future
would be correct and complete.
PRICES AND VALUES.
The price at which a property has been
sold is not conclusive In any way as
measure of value of a similar property,
even that adjoining. What were the
REASONS for the price7 Perhaps bank
Tuptcy, no money bad times. many con-
tingencies.
Market value is not a price at which
property can be forced upon the market.
One person must want to sell and an
ether want to buy: buyer and seller must
como into accord, one wishing to sell and
another anxious to buy; then a price is
made which would have distinct value,
3 fair criterion OF similar property. II |
> prloe of $1,000 has been ruling in a
block for some time and a sale Is made |
OF one Of the properties at $50OO 1t is as
eumed that the sale is a special one and
there are reasons for 1t. No broker would |
change his value on that for Others but |
II II Is followed by others and properties |
appear for sale, then It is a matter to be |
considered in the value OF all.
It is also fact that land may be near |
valuable land without being as valuable. |
Ehe owner may be in contact with rich |
people and valuable things without be- |
Ing very rich.
A WORD FOR ASSESSORS.
Now. in regard to the real estate as
sessors. OF course, they are pleased over |
the possibility OF real values being dis
slosed, as they would have a safe guide
to their valuations. For years they have
had a great deal TO contend with, and in |
most cases have 10 be as good judges OF |
human nature as of real estate TO know
bow 20 handle the cases that daily come |
before them.
One man wants his property assessed as
high as possible. He Is getting mort- /
Sages, and the lender will advance only |
20 per cent. Of the assessed value, as IL /
any action OF an assessor could add one /
dollar to the value. Another cannot rent |
bis property for enough to get ali the /
1xed charges paid-often because he will |
not spend moderats amount upon Il In /
repairs. He tries his eloquencs upon the /
assessor as a measure OF relief other /
eases could be cited. One OF the best /
things TO do II the assessment ia too |
high OF too low is to go to the ward 1
assessor and make frank statement |
he wants the amount as near right as
be can make It when everything Is
weighed.
Persons trying to buy a whole bloeIZ
q property would find the new law a
hardship. and TO many 1t would seem
IN undue publicity given TO private az
fairs. II would. however. be wonderful
how soon the public would adapt itself
10 the new conditions, and those who
have covered up details that should not
% covered up would meet with an OBJ
.taole to keep them Ia line and protect
hose who engage IN business with them.
LESSOR.