A licensee is assisting a buyer who is purchasing a condominium in Baltimore City, Maryland. The buyer asks whether Maryland imposes both a state transfer tax and a local recordation tax. Which of the following is the correct answer the licensee should provide?
Correct Answer
C) Maryland imposes both a state transfer tax and a county recordation tax, both of which are due at the time of recording.
Under Md. Code Ann., Tax-Prop. §§ 12-101 et seq. (recordation tax) and §§ 13-101 et seq. (transfer tax), Maryland imposes BOTH a statewide transfer tax and a county-level recordation tax. Both taxes are triggered when a deed is recorded and are collected at the time of recording by the clerk of the circuit court. This dual-tax structure is a Maryland-specific feature that agents must understand and communicate accurately.
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Related Topics & Key Terms
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Related Concepts
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.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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