When comparing Connecticut's real estate conveyance tax to transfer tax systems in other states, which of the following statements about Connecticut's system is NOT accurate?
Correct Answer
C) Connecticut's conveyance tax is paid by the buyer because it is modeled after a federal excise tax on real property acquisitions.
Option C is the inaccurate statement. Connecticut's conveyance tax is paid by the seller (grantor), not the buyer. Additionally, there is no federal excise tax on real property acquisitions that Connecticut's tax is 'modeled after.' The conveyance tax is a state-level tax imposed on the grantor under CGS § 12-494, with no federal analog.
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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.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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.
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