Under Connecticut's real estate conveyance tax law (CGS § 12-494), all of the following statements about the tax are correct EXCEPT:
Correct Answer
D) The buyer is required to pay the conveyance tax directly to the municipality at closing.
Option D is the false statement. Under CGS § 12-494, the conveyance tax is the obligation of the seller (grantor), not the buyer. The tax is paid when the deed is presented for recording, and it is the seller's responsibility. Stating that the buyer pays it directly to the municipality is incorrect.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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.
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