A California property sells for $850,000 in unincorporated Contra Costa County, which charges only the standard county documentary transfer tax of $1.10 per $1,000 of the sale price (no city tax applies). What is the total documentary transfer tax?
Correct Answer
A) $935
Step 1: Documentary transfer tax = Sale Price / $1,000 × $1.10. Step 2: $850,000 / $1,000 = 850. Step 3: 850 × $1.10 = $935.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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