In Virginia, the grantor's tax is a transfer tax imposed at the state level. Who is primarily responsible for paying the grantor's tax at closing?
Correct Answer
C) The seller, because the seller is the grantor conveying title to the buyer
In Virginia, the grantor's tax is paid by the seller (grantor) at closing. The tax is imposed on the privilege of conveying real property and is calculated based on the sale price. Under Virginia Code § 58.1-801, the grantor's tax is the seller's obligation because the seller is the party transferring title.
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Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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.
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