A Connecticut real estate salesperson is advising her seller client about the upcoming closing on a $750,000 residential property. The seller asks whether the Connecticut conveyance tax will be calculated at the 0.75% rate or the 1.25% rate. Which response is most accurate?
Correct Answer
A) The entire $750,000 will be taxed at 0.75% because the sale price does not exceed the $800,000 first-tier threshold.
Under CGS § 12-494, the first tier of Connecticut's state conveyance tax applies to sale prices up to $800,000 at a rate of 0.75%. Since the sale price of $750,000 does not exceed $800,000, the entire amount is taxed at the single rate of 0.75%, resulting in a state tax of $5,625. No second-tier rate is triggered.
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Related Topics & Key Terms
Key Terms:
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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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