Dutiable documents include tenancies, transfers and property mortgages
A worked RES examination question on stamp duties general, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
A conveyancing paralegal sorts a batch of documents to decide which attract stamp duty. The batch holds a tenancy agreement, a will, a mortgage securing a property loan, and a promissory note unrelated to any property or shares. He has been told that anything a lawyer draws up must be stamped, and wants to separate the documents that truly attract duty from those that do not.
Consider the following statements.
- (i) The tenancy agreement is a dutiable document.
- (ii) The will is a dutiable document.
- (iii) The mortgage relating to a property loan is a dutiable document.
- (iv) The promissory note not relating to property or shares is a dutiable document.
The answer, and why
Answer: A
The rule. Dutiable documents include tenancies, transfers and property mortgages. Wills, promissory notes and loan agreements not relating to property or shares, insurance policies and statutory declarations are non-dutiable.
Why A is correct. Only the tenancy and the property mortgage are dutiable. The will and the unrelated promissory note are on the non-dutiable list.
The other options.
- B adds the false (ii), the will.
- C adds the false (iv), the unrelated promissory note.
- D drops (iii), the property mortgage.
Exam note. A will and a non-property promissory note are non-dutiable — do not assume every legal document attracts stamp duty.
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