Margaret sells her Nashville home for $285,000. At closing, the Tennessee realty transfer tax is collected. Under Tenn. Code Ann. § 67-4-409, who is customarily responsible for paying this tax?
Correct Answer
D) The seller, as the party transferring the property
Under Tennessee custom and Tenn. Code Ann. § 67-4-409, the realty transfer tax is customarily paid by the seller at closing. The tax is imposed on the transfer of real property, and by longstanding Tennessee practice, the seller — as the party conveying title — bears this cost.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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.
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