A Tennessee closing attorney is advising clients on the realty transfer tax. Which of the following statements about Tennessee's realty transfer tax is EXCEPT accurate — that is, which statement is INCORRECT?
Correct Answer
C) The buyer is customarily responsible for paying the transfer tax at closing
The statement that 'the buyer is customarily responsible for paying the transfer tax at closing' is INCORRECT. Under Tennessee law and custom, the realty transfer tax imposed by Tenn. Code Ann. § 67-4-409 is customarily paid by the SELLER — the party transferring the property — not the buyer. This is a frequently tested distinction in Tennessee state exam questions.
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Related Topics & Key Terms
Key Terms:
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