Kevin is a licensed Virginia real estate salesperson representing the seller in a transaction. The buyer's agent asks Kevin who is responsible for paying the state grantor's tax and the recordation tax on the deed of trust. Kevin correctly explains the Virginia rule. Which of the following is Kevin's correct answer?
Correct Answer
A) The grantor's tax is paid by the seller; the recordation tax on the deed of trust is paid by the buyer
Kevin's correct answer is that the grantor's tax (under Virginia Code § 58.1-801) is the seller's obligation because the seller is conveying title, while the recordation tax on the deed of trust (under Virginia Code § 58.1-803) is the buyer's obligation because the buyer is the trustor executing that instrument. This division reflects the statutory allocation of these taxes in Virginia.
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Related Topics & Key Terms
Key Terms:
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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