Vermont's property transfer tax is paid at closing and is based on:
Correct Answer
B) The purchase price or fair market value
Vermont's property transfer tax is calculated based on the property's sale price or fair market value. The rate is 1.25% for the first $100,000 and 1.45% for amounts over $100,000 (non-principal residence rates may differ).
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Related Topics & Key Terms
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Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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