Under Tenn. Code Ann. § 67-4-409, which of the following transfers is NOT exempt from the Tennessee realty transfer tax?
Correct Answer
D) A transfer of real property from a seller to an unrelated buyer for $425,000
A standard arm's-length sale from a seller to an unrelated buyer for $425,000 is a taxable transfer under Tenn. Code Ann. § 67-4-409 and is NOT exempt from the Tennessee realty transfer tax. The full tax of $0.37 per $100 (or fraction thereof) applies to this transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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