A Connecticut buyer and seller enter into a purchase agreement. The buyer is represented by a buyer's agent and the seller by a listing agent, both from different brokerages. The purchase agreement is silent on which party is responsible for paying the state real estate conveyance tax. At closing, a dispute arises. Under Connecticut law, who is responsible for paying the state real estate conveyance tax?
Correct Answer
B) The seller, because the conveyance tax is imposed on the grantor transferring title under CGS § 12-494
Under CGS § 12-494, Connecticut's real estate conveyance tax is imposed on the grantor (seller) who transfers title to real property. The tax is the seller's legal obligation and is paid at the time of recording the deed. While parties may contractually agree to allocate this cost differently, in the absence of a contractual provision, the conveyance tax is the seller's responsibility as the transferring party.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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