A developer in Barnstable County sells a newly constructed oceanfront home for $2,000,000. The buyer's attorney informs the buyer that, in addition to the standard Massachusetts deed excise tax, a separate 1% transfer fee applies to this transaction. The buyer asks the real estate agent what this additional fee is and where it goes. Which of the following is the most accurate response?
Correct Answer
A) It is the Barnstable County Land Bank fee, used to fund open space and conservation land acquisition on Cape Cod
Barnstable County imposes a 1% Land Bank transfer fee (with certain exemptions, including for buyers purchasing their primary residence under a certain price threshold) on real estate sales in Barnstable County under the Cape Cod Land Bank Act. The proceeds are used to acquire and protect open space and conservation land on Cape Cod. This is a Massachusetts-specific regional fee that applies in addition to the state deed excise tax under MGL Chapter 64D.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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