What is the correct answer to: Virginia's recordation tax is:

The correct answer is $0.25 per $100 of value on deeds. Virginia Code § 58.1-801 establishes the state recordation tax on deeds at $0.25 per $100 of the consideration or the actual value of the property conveyed, whichever is greater. This rate applies to the full purchase price stated in the deed, meaning a $400,000 home sale would generate a state recordation tax of $1,000 (400 × $0.25). Virginia localities are also authorized under § 58.1-814 to impose additional local recordation taxes, so the total tax paid at closing may exceed the state rate depending on the jurisdiction.

What background knowledge is needed for this Transfer Of Title question?

Virginia's recordation tax system has its roots in the Commonwealth's long history of funding public records infrastructure through transaction-based levies, a practice dating back to the colonial era when recording deeds in county courthouses was essential to establishing clear land title. The current rate structure under Virginia Code § 58.1-801 reflects a modernized version of these historical taxes, codified and periodically amended by the Virginia General Assembly. The dual state-and-local structure allows localities such as Fairfax County and Arlington County — which have high property values and significant recording volumes — to generate additional revenue for local government services. Virginia's recordation tax system is distinct from the grantor's tax (also called the deed tax) imposed under § 58.1-802, which adds another layer of transfer-related taxation that exam candidates must carefully distinguish.

What is a good way to remember the answer to this Transfer Of Title question?

Remember Virginia's recordation tax rate with the phrase 'A Quarter per Hundred in the Old Dominion' — just as you'd drop a quarter ($0.25) into a jar for every $100 you spend, Virginia drops a quarter into the state treasury for every $100 of property value recorded. Visualize George Washington (on the quarter) stamping each deed at the courthouse for every $100 of value — this image connects the coin denomination to the tax rate in a memorable way. Recite this rhyme when encountering Virginia recordation tax questions to remember the rate is $0.25 per $100

What exam tip applies to this Transfer Of Title question?

When answering questions about Virginia's recordation tax, focus on the phrase '$0.25 per $100' and remember that this is a state baseline rate with localities authorized to add more — the answer will always involve this per-$100 calculation rather than a flat fee. Be careful not to confuse the recordation tax with the grantor's tax; exam questions may test both on the same exam, so remember that the recordation tax is about recording the deed (typically buyer's cost) while the grantor's tax is about conveying the deed (typically seller's cost).

How does this Transfer Of Title concept apply in real world practice?

A buyer in Richmond, Virginia, purchases a home for $350,000 and is preparing for closing. The title company calculates the state recordation tax at $0.25 per $100, resulting in a state tax of $875 (3,500 × $0.25). Because Richmond is an independent city with its own local recordation tax authority, an additional local tax is layered on top of the state rate, increasing the total recordation tax burden at closing. The buyer's attorney includes both the state and local recordation taxes in the closing disclosure as separate line items, ensuring transparency about the total cost of recording the deed.

Transfer Of TitleTaxesMEDIUM

Virginia's recordation tax is:

Correct Answer

B) $0.25 per $100 of value on deeds

Virginia's state recordation tax is $0.25 per $100 of consideration on deeds, with localities able to add additional taxes.

Answer Options

Paid only by sellers

$0.25 per $100 of value on deeds

Not applicable

A flat fee

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Related Concepts

Transfer Tax

A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.

Abstract of Title

An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.

Actual Notice

Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.

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Virginia's recordation tax is:

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