Kevin and Lisa are purchasing their first home in Newark, Delaware. Their real estate agent mentions that as first-time homebuyers, they may be eligible for a benefit related to the Delaware realty transfer tax. Which of the following most accurately describes the first-time homebuyer transfer tax benefit available in Delaware?
Correct Answer
C) First-time homebuyers may receive exemptions or reductions on the local portion of the transfer tax, depending on the municipality.
Under Delaware law and practice, first-time homebuyer exemptions or reductions apply at the local level and vary by municipality. The state transfer tax rate of 2.5% under 30 Del. C. § 5401 et seq. is not automatically waived for first-time buyers statewide; rather, local jurisdictions have the authority to offer reductions or exemptions on their local transfer tax portion for qualifying first-time homebuyers.
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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.
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