James, a Tennessee real estate broker, is comparing Tennessee's realty transfer tax to transfer taxes in other states he has studied. He makes four statements about Tennessee's transfer tax. Which of his statements is CORRECT?
Correct Answer
C) Tennessee's transfer tax of $0.37 per $100 is a state-specific rate that applies to all taxable real property transfers regardless of property type
Under Tenn. Code Ann. § 67-4-409, Tennessee's realty transfer tax rate of $0.37 per $100 of consideration is a uniform statewide rate that applies to all taxable real property transfers — residential, commercial, industrial, and otherwise — throughout the state. There is no distinction by property type, and the rate does not vary by county.
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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.
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