A Tennessee couple is divorcing and one spouse transfers their jointly owned home to the other spouse as part of the divorce settlement. Under Tenn. Code Ann. § 67-4-409, how does the Tennessee realty transfer tax apply to this transaction?
Correct Answer
A) The transfer is exempt from the Tennessee realty transfer tax
Under Tenn. Code Ann. § 67-4-409, certain transfers are exempt from the Tennessee realty transfer tax, including transfers between spouses. A transfer of property between spouses — whether during marriage or as part of a divorce settlement — qualifies for this exemption, meaning no transfer tax is owed.
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Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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