Under Vermont law, which party is responsible for paying the Vermont Property Transfer Tax at closing on a residential real estate transaction?
Correct Answer
B) The buyer, because the tax is imposed on the transfer of property to the new owner
Under 32 V.S.A. Chapter 231, the Vermont Property Transfer Tax is paid by the buyer at closing. The tax is levied on the transfer of real property and is the buyer's obligation, not the seller's.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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.
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