A buyer purchases a home in Bucks County, PA for $475,000. The total transfer tax is 2% (1% state + 1% local). The parties split the tax equally. The buyer also pays $2,000 in recording fees. What is the buyer's total transfer tax and recording fee obligation?
Correct Answer
C) $6,750
Buyer's transfer tax share = ($475,000 × 2%) ÷ 2 = $9,500 ÷ 2 = $4,750. Plus recording fees: $4,750 + $2,000 = $6,750.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The chain of title is the sequential history of all transfers of ownership for a specific property, from the original source (typically a government patent or grant) to the present owner. An unbroken chain is essential for marketable title.
The closing process, also called settlement, is the final step in a real estate transaction where documents are signed, funds are disbursed, and title is officially transferred from the seller to the buyer.
Constructive notice is the legal presumption that a person has knowledge of information that is available through public records or visible inspection of the property, regardless of whether they actually knew about it.
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- → A homeowner in Philadelphia converts their primary residence to a rental property and then sells it two years later. The transfer tax rate in Philadelphia remains 4.278% regardless of property use. Does the conversion to rental affect the transfer tax?
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In Pennsylvania, the local realty transfer tax rate can vary by jurisdiction. All of the following factors can affect the local transfer tax rate EXCEPT:
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A property straddles two municipalities in Pennsylvania, each with different local transfer tax rates. How is the local transfer tax determined?