Sarah is purchasing a home in Burlington, Vermont that will serve as her primary residence. The agreed purchase price is $300,000. Under Vermont's Property Transfer Tax rules, which rate structure applies to this transaction?
Correct Answer
D) 0.5% on the first $100,000 and 1.25% on the remaining $200,000
Under 32 V.S.A. Chapter 231, for a primary residence, the Vermont Property Transfer Tax rate is 0.5% on the first $100,000 of value and 1.25% on the value exceeding $100,000. This two-tier structure applies specifically to owner-occupied primary residences.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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