David is selling his condominium in Cambridge, Massachusetts for $760,000. Using the Massachusetts deed excise tax rate of $4.56 per $1,000 (or fraction thereof) of the purchase price, what is the total deed excise tax owed at closing?
Correct Answer
C) $3,465.60
Step 1 — Determine the number of $1,000 units: $760,000 ÷ $1,000 = 760 units (exactly, no fraction). Step 2 — Multiply by the rate: 760 × $4.56 = $3,465.60. The Massachusetts deed excise tax rate under MGL Chapter 64D is $4.56 per $1,000 or fraction thereof of the consideration stated in the deed. Since $760,000 divides evenly by $1,000, there is no rounding up required.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Valuation Question
Background Knowledge for Valuation
Real World Application in Valuation
Related Topics & Key Terms
Key Terms:
More Valuation Questions
Example of economic obsolescence in real estate?
Who typically hires the appraiser in a real estate transaction?
Which appraisal report type do California lenders commonly rely on for single-family residence financing?
Return of an investor’s investment is provided for through:
All of the following are one of the four important elements of value, except:
- → Under the replacement cost approach of appraisal, an appraiser is least interested in:
- → The appraisal process which allocates a percentage of a property’s total value to the land and a percentage to the improvements is known as:
- → Which Tennessee government body is primarily responsible for appraising real property for ad valorem tax purposes at the local level?
- → A property's value decreased because a noisy highway was built nearby. This is an example of:
- → Which of the following is the least important factor used to determine the market value of a property?
- → In Texas, a comparative market analysis (CMA) can be prepared by:
- → All of the following have a specific dollar value, except:
- → In which appraisal approach to value would the value for the land be calculated separately?
- → In Texas, functional obsolescence includes:
- → A capitalization rate of 8% on a property with $40,000 NOI indicates a value of: