A Connecticut seller is closing on the sale of her home for $500,000. Her real estate agent informs her that the Connecticut state conveyance tax will be deducted from her proceeds at closing. The property is a standard residential home and no special exemptions apply. Approximately how much will the seller owe in Connecticut state conveyance tax?
Correct Answer
B) $3,750
Under CGS § 12-494, the Connecticut state conveyance tax rate for most residential property is 0.75% on the first $800,000 of the sale price. Since the sale price of $500,000 is entirely within the first tier (below $800,000), the entire amount is taxed at 0.75%. Calculation: $500,000 × 0.0075 = $3,750. The seller owes $3,750 in Connecticut state conveyance tax. Note that the conveyance tax is paid by the grantor (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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