Robert is a first-time homebuyer in Virginia who has heard that some localities impose additional transfer taxes beyond the state grantor's tax. He asks his agent whether Fairfax County can legally impose its own transfer or recordation tax on top of the state tax. Which of the following is the most accurate response the agent should give?
Correct Answer
B) Yes, Virginia Code § 58.1-802 authorizes localities to impose an additional recordation tax, and many Northern Virginia jurisdictions do so
Virginia Code § 58.1-802 expressly authorizes local jurisdictions to impose an additional recordation tax on deeds of conveyance, up to one-third of the state tax rate. Many Northern Virginia localities, including Fairfax County, Arlington County, and others, do in fact impose this additional local tax. This results in a combined state-plus-local tax burden at closing that buyers and sellers must account for. The agent's correct answer is that local taxes are legally authorized and commonly imposed.
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Related Topics & Key Terms
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Related Concepts
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.
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.
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