Patricia is purchasing a townhouse in Harford County. Her settlement attorney explains that before the deed can be recorded in the county land records, two taxes must typically be paid at settlement. Which combination of taxes is the attorney referring to?
Correct Answer
B) The Maryland state transfer tax and the county recordation tax
Maryland imposes two taxes that must be paid before a deed can be recorded: (1) the Maryland state transfer tax under Md. Code Ann., Tax-Prop. §§ 12-101 et seq., which is generally 0.5% of the consideration (or 0.25% for first-time homebuyers purchasing a principal residence), and (2) the county recordation tax under Md. Code Ann., Tax-Prop. §§ 13-101 et seq., which varies by county. Both must be paid at or before settlement as a condition of recording the deed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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