Ohio's real estate conveyance fee is:
Audio Lesson
Duration: 2:13
Question & Answer
Review the question and all answer choices
$1 per $1,000
Option A is incorrect because it only represents the state portion of the conveyance fee ($1 per $1,000) without including the county portion, which is an essential part of Ohio's total conveyance fee.
$4 per $1,000 (state and county combined)
$10 per $1,000
Option C is incorrect because it overstates the conveyance fee rate. Ohio's combined state and county fee is $4 per $1,000, not $10 per $1,000.
No transfer tax
Option D is incorrect because Ohio does have a transfer tax in the form of a conveyance fee. While some states have no transfer tax, Ohio's $4 per $1,000 fee is mandatory in most transactions.
Why is this correct?
Answer B is correct because Ohio's conveyance fee is a combined state and county fee totaling $4 per $1,000 of the sale price. The state portion is $1 and the county portion is $3, making the combined rate $4 per $1,000.
Deep Analysis
AI-powered in-depth explanation of this concept
Understanding Ohio's real estate conveyance fee is crucial for real estate professionals because directly impacts transaction costs and affects both buyer and seller decisions. This question tests your knowledge of state-specific transfer taxes, which are a common closing cost that agents must be able to calculate and explain. The core concept is recognizing that Ohio has a combined state and county conveyance fee rather than just a state fee. To arrive at the correct answer, you need to know that Ohio's fee structure is $1 per $1,000 from the state plus $3 per $1,000 from the county, totaling $4 per $1,000. What makes this question challenging is that it combines state and county fees, which might not be immediately apparent to test-takers unfamiliar with Ohio's specific structure. This connects to broader real estate knowledge about how different states handle transfer taxes, some having no transfer tax at all, while others have complex structures with multiple components.
Knowledge Background
Essential context and foundational knowledge
Conveyance fees, also known as transfer taxes, are state-imposed taxes on the transfer of real property. These fees generate revenue for state and local governments. In Ohio, the conveyance fee has been in place for many years and consists of two components: a $1 per $1,000 state fee and a $3 per $1,000 county fee. The county portion may vary slightly by county, but the total is typically $4 per $1,000. This fee is usually paid at closing and is typically split between buyer and seller according to local custom or contract terms. Understanding these fees is essential for proper transaction disclosures and closing cost estimates.
Four dollars per thousand, that's the Ohio rule, one from state, three from county, that's the total fee.
Remember the rhyme 'Four dollars per thousand' to recall Ohio's total conveyance fee rate. The rhyme breaks it down: $1 state + $3 county = $4 total per $1,000.
For Ohio conveyance fee questions, remember it's always $4 per $1,000 (state + county combined). Look for keywords like 'conveyance fee' rather than 'transfer tax' in Ohio questions.
Real World Application
How this concept applies in actual real estate practice
As a listing agent in Ohio, you're preparing a seller's net sheet for a $300,000 home. You need to calculate the conveyance fee to determine the seller's proceeds. Using the $4 per $1,000 rate, you calculate $1,200 ($4 × 300). When presenting this to the seller, you explain that while the state portion is fixed at $300 ($1 × 300), the county portion may vary slightly depending on their specific county. This calculation helps the seller understand their closing costs and make informed decisions about potential price adjustments or concessions.
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