Business Message

High School ・Business ・MLA

Dear Hon. Jared Huffman,

I hope this letter meets you well. They call me Samantha Holmes by name, and I am the sole Proprietor of LIT Homes. I write this letter addressing the Documentary Transfer Tax law codified at section 11932 and 11933 of the Revenue and tax code in California. The above law modified the practice that was embedded in the real estate industry that needed the documentary transfer tax to be defined in an annexure to sale agreement. The law presently provides that the documentary tax needs to be outlined on the front cover of the agreement and the outcome of this requirement is that the purchaser of the property is able to know the actual value of the property they are buying.

I am requesting you to pass a motion to have the legislation repealed since it has far-reaching effects on the real estate industry. Our business model thrives on selling properties on behalf of vendors who set the minimum amount they would wish to receive for a given property and usually it is up to our discretion to state a higher price from the possible buyer. The requirement that has been imposed by Section 11932 and 11933 will put off the possible customers who might be able to see the disparities between the asking price and the actual sales price. The law further curtails on the laissez-faire principle of free markets. Ideally, the purchaser is drawn by the prices that are set by real estate companies and therefore the law should not limit this freedom of contracting by highlighting the documentary transfer tax lest the legislature intended to put us out of business.

Kindly treat this matter with a sense of urgency since some of the realty companies I have interacted with have started recording a considerable amount of losses shortly after the enactment of the specific laws. I have enclosed some of the statements of accounts for your perusal. In the event that you need any clarification or further information please do not hesitate to contact me at (323) 126-4512. I look forward to working with you to ensure that the issue I have raised is resolved expeditiously.


Samantha Holmes, LIT Homes,

114 Altadena Drive

Parkplace, VA 11442

Enclosures: 2

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