Wisconsin real estate transfer fee is:
Audio Lesson
Duration: 2:35
Question & Answer
Review the question and all answer choices
No transfer fee
Wisconsin does charge a transfer fee, so 'No transfer fee' is incorrect. This misconception might arise from confusing Wisconsin with states that don't impose separate transfer fees.
$0.30 per $100 of value
1% of sale price
Wisconsin does not charge 1% of the sale price as a transfer fee. This percentage-based structure is used in some other states but not Wisconsin, where the fee is calculated per $100 of value.
$1.00 per $1,000
Wisconsin's fee is $0.30 per $100 of value, not $1.00 per $1,000. This option represents a common calculation error where students misapply the per-unit rate.
Why is this correct?
Wisconsin specifically charges a real estate transfer fee of $0.30 per $100 of property value. This is a state-mandated fee that must be paid during property transfers and is distinct from other closing costs like title insurance or recording fees.
Deep Analysis
AI-powered in-depth explanation of this concept
Understanding transfer fees is crucial in real estate practice because these costs directly affect closing disclosures and client expectations. This question tests knowledge of state-specific transfer fees, which vary significantly across the US. The core concept involves calculating the Wisconsin transfer fee based on property value. To solve this, we recognize that Wisconsin charges $0.30 per $100 of value. For example, on a $200,000 property, the fee would be $600 ($0.30 × 2,000 = $600). This question is challenging because many states have different fee structures, and students might confuse percentage-based fees with flat-rate fees. Understanding transfer fees connects to broader knowledge of closing costs, which include title insurance, recording fees, and prorated taxes, all essential for accurate settlement statements.
Knowledge Background
Essential context and foundational knowledge
Real estate transfer fees are state-imposed charges levied when property title transfers from one owner to another. These fees generate revenue for state and local governments and fund various programs. Wisconsin's $0.30 per $100 fee has been in place for many years and applies to all real estate transactions except certain transfers between family members or as gifts. The fee is typically paid at closing and appears on the settlement statement as a separate line item. Understanding these fees helps agents provide accurate cost estimates to clients and ensures compliance with state regulations.
Think of the Wisconsin transfer fee like a toll road that charges $0.30 for every $100 of your journey (property value).
When calculating, remember it's like dividing your property value by 100 and then multiplying by $0.30
For transfer fee questions, first identify the state, then look for the per-unit rate (per $100 or $1,000) rather than percentage-based options unless specified.
Real World Application
How this concept applies in actual real estate practice
A buyer is purchasing a $350,000 home in Milwaukee. As their listing agent, you need to provide an estimate of closing costs. You calculate the Wisconsin transfer fee as $0.30 per $100 of value: $350,000 ÷ 100 = 3,500 units × $0.30 = $1,050. This fee must be included in the closing disclosure, and you should advise your client about this state-specific charge to avoid surprises at settlement. Your accurate preparation helps ensure a smooth closing process.
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