A home in San Francisco sells for $1,500,000. Under San Francisco's current transfer tax ordinance, the applicable city transfer tax rate for properties valued between $1,000,000 and $4,999,999 is $6.80 per $1,000 of value, and the California county documentary transfer tax rate is $1.10 per $1,000. What is the total combined transfer tax due at closing?
Correct Answer
A) $1,650
Step 1 — County documentary transfer tax (Revenue and Taxation Code §11911): $1,500,000 ÷ $1,000 = 1,500 units × $1.10 = $1,650. Step 2 — San Francisco city transfer tax (SF Business and Tax Regulations Code, Article 12-C): For properties valued between $1,000,000 and $4,999,999, the applicable rate is $6.80 per $1,000. $1,500,000 ÷ $1,000 = 1,500 units × $6.80 = $10,200. Step 3 — Total: $1,650 + $10,200 = $11,850. Note: In San Francisco, transfer tax is customarily negotiated between buyer and seller as part of the purchase contract; it is not legally mandated to be paid exclusively by either party.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Transfer Of Property Question
Background Knowledge for Transfer Of Property
Real World Application in Transfer Of Property
Common Mistakes to Avoid on Transfer Of Property Questions
Related Topics & Key Terms
Key Terms:
More Transfer Of Property Questions
Determining who pays what at closing involves:
Closing is always the _____ step in real estate transactions.
Depreciation on rental property for federal tax purposes is calculated over:
A title company examines the public records and finds that all deeds in the property's history are properly recorded and connect in an unbroken sequence. This unbroken sequence of ownership is called the
In a jurisdiction where a later purchaser must both lack notice and record before the earlier claimant records, what kind of recording act applies?
- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A California property is reassessed at $950,000 following a change in ownership. Under Proposition 13, what is the maximum amount by which the assessed value may increase in any single subsequent year?
Next Question
A California homeowner sells a property in 2025 for $1,200,000. The property was purchased in 1995 and has been assessed under Proposition 13 since then. What happens to the property's assessed value when the new buyer takes ownership?