David is a Connecticut real estate salesperson helping a buyer client obtain financing for a $600,000 home purchase. The buyer asks David whether the municipality can impose an additional conveyance tax on top of the state conveyance tax. Which of the following is the most accurate response David can provide?
Correct Answer
A) Yes, municipalities may levy a local conveyance tax of up to 0.25% in addition to the state conveyance tax.
Under CGS § 12-494, Connecticut municipalities are authorized to levy a local real estate conveyance tax of up to 0.25% in addition to the state conveyance tax. Certain municipalities that have been granted special authorization by the legislature may charge higher rates, but the standard cap for municipal conveyance tax is 0.25%. This dual-layer conveyance tax structure (state plus optional municipal) is a Connecticut-specific feature that buyers and sellers need to understand.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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