A foreclosure sale in Memphis results in a property selling for $200,000. Tennessee's realty transfer tax is $0.37 per $100 of consideration or fraction thereof, and the tax is customarily paid by the seller (in this case, the foreclosing lender). How much transfer tax must be paid on this transaction?
Correct Answer
A) $740.00
Tennessee's realty transfer tax is $0.37 per $100 of consideration. $200,000 / $100 = 2,000 units (no fraction), and 2,000 x $0.37 = $740.00.
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