Maria sells her single-family home in Worcester to David for $450,000. At closing, who is primarily responsible for paying the Massachusetts deed excise tax (stamp tax)?
Correct Answer
C) Maria, the seller, because she is the grantor conveying the deed
Under MGL Chapter 64D, the deed excise tax (stamp tax) in Massachusetts is the legal obligation of the seller (grantor), because it is the grantor who is conveying the deed. Maria, as the seller, is responsible for paying the stamp tax at closing.
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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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