A property in Nashville sells for $347,500. The seller is responsible for paying the Tennessee realty transfer tax at the rate of $0.37 per $100 of consideration (or fraction thereof). What is the total transfer tax owed at closing?
Correct Answer
A) $1,285.75
Step 1 — Determine the number of $100 units: $347,500 ÷ $100 = 3,475 (exactly, no fraction). Step 2 — Multiply by the tax rate: 3,475 × $0.37 = $1,285.75. Because $347,500 divides evenly by $100, no rounding up is required. The total transfer tax is $1,285.75. Under Tenn. Code Ann. § 67-4-409, the tax is $0.37 per $100 or fraction thereof, customarily paid by the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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