James sells his condominium in Boston for $380,000. Using the Massachusetts deed excise tax rate of $2.28 per $500 (or fraction thereof) of the sale price, what is the total deed excise tax (stamp tax) owed at closing?
Correct Answer
C) $1,732.80
Step 1: Divide the sale price by $500 to find the number of $500 units: $380,000 ÷ $500 = 760 units (no fraction, so no rounding up needed). Step 2: Multiply by the rate: 760 × $2.28 = $1,732.80. The total deed excise tax owed is $1,732.80.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
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