A deed transferring a property in Cambridge shows a stated consideration of $1.00. The actual market value of the property is $600,000. How will the Massachusetts Registry of Deeds determine the deed excise tax owed on this transaction?
Correct Answer
B) Tax is assessed on the actual fair market value of $600,000
Under MGL Chapter 64D, the deed excise tax is assessed on the actual consideration paid or the fair market value of the property, whichever is greater. A nominal consideration of $1.00 does not exempt the transaction from the full excise tax; the Registry of Deeds will assess the tax based on the actual fair market value of $600,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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.
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