Connecticut's real estate conveyance tax has several specific features that licensees must understand. Which of the following statements about the Connecticut conveyance tax is NOT accurate?
Correct Answer
D) The buyer is legally responsible for paying the Connecticut state conveyance tax at closing.
The statement that the buyer is responsible for paying the Connecticut state conveyance tax is NOT accurate. Under CGS § 12-494, the real estate conveyance tax in Connecticut is imposed on the grantor (seller), not the grantee (buyer). The seller is legally responsible for paying the conveyance tax at the time the deed is recorded. This is a critical distinction — while buyers pay many closing costs, the conveyance tax obligation falls on the seller under Connecticut law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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