A Vermont farmland owner has had 150 acres enrolled in the Vermont Current Use Program for the past 12 years. A developer offers to purchase the property and immediately convert it to a residential subdivision. Which statement best describes the tax consequence that will occur at closing as a result of the Current Use enrollment?
Correct Answer
D) A land use change tax will be triggered upon withdrawal of the property from the Current Use Program
Under 32 V.S.A. Chapter 124, when land enrolled in Vermont's Current Use Program (Use Value Appraisal) is withdrawn from enrollment or converted to a non-qualifying use, a land use change tax is triggered. This tax is assessed on the difference between the use value and the fair market value of the land at the time of change. The conversion to a residential subdivision constitutes a withdrawal from the program, and the land use change tax will be owed regardless of how long the property has been enrolled.
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Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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