FinancingDeed_of_trust_mechanicsMEDIUM
A Memphis home sells for $250,000. The buyer obtains a deed-of-trust loan for 80% of the purchase price. The seller must pay the Tennessee realty transfer tax of $0.37 per $100 (or fraction thereof) based on the full sale price. What is the seller's transfer tax obligation?
Correct Answer
B) $925.00
Tennessee's realty transfer tax is $0.37 per $100 of consideration based on the full sale price (not the loan amount). $250,000 / $100 = 2,500 units; 2,500 x $0.37 = $925.00.
Answer Options
A
$740.00B
$925.00C
$740.37D
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Related Topics & Key Terms
Key Terms:
transfer_taxcalculationrounding_ruletennessee_tax
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