Margaret sells her Nashville home to a buyer for $285,000. At closing, the title company asks who is customarily responsible for paying the Tennessee realty transfer tax. Which of the following correctly identifies who pays the tax and the statutory authority?
Correct Answer
B) The seller pays the transfer tax, as is the customary practice under Tenn. Code Ann. § 67-4-409
Under Tenn. Code Ann. § 67-4-409, the Tennessee realty transfer tax is customarily paid by the seller at closing. While the statute does not always mandate who bears the tax in every circumstance, established practice and exam guidance consistently identify the seller as the responsible party for this tax.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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