Under Massachusetts law, what is the current deed excise tax rate applied to most residential real property transfers?
Correct Answer
A) $2.28 per $500 of consideration
Massachusetts imposes a deed excise tax (stamp tax) at the rate of $2.28 per $500 (or fraction thereof) of the purchase price or consideration, as established under MGL Chapter 64D. This rate combines the state rate of $2.28 per $500.
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Related Topics & Key Terms
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Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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.
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