During a listing presentation in Northern Virginia, a seller asks her agent who is customarily responsible for paying the state grantor's tax in Virginia. The agent correctly responds that under Virginia law and standard practice, this tax is typically paid by whom?
Correct Answer
B) The seller, because the grantor's tax is imposed on the party conveying the property
Under Va. Code § 58.1-802, Virginia's grantor's tax is imposed on the grantor — the party conveying the property, which is the seller. The tax is based on the consideration received and is a seller's closing cost. This is a Virginia-specific feature: the grantor's tax falls on the seller, while the buyer typically bears the recordation tax on the deed.
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Related Concepts
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
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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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