A Connecticut real estate licensee is reviewing a closing statement for a residential property sale at $2,600,000. The licensee needs to identify which conveyance tax rate applies to the portion of the sale price above $2,500,000. Which rate correctly applies to that portion under CGS § 12-494?
Correct Answer
D) 2.25%, the third-tier rate that applies to amounts exceeding $2,500,000
Under CGS § 12-494, Connecticut's tiered conveyance tax imposes a rate of 2.25% on any portion of the sale price that exceeds $2,500,000. For a $2,600,000 sale, the $100,000 above $2,500,000 is taxed at 2.25%, resulting in $2,250 of tax at the third tier alone.
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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