What is the Maine real estate transfer tax rate and how is it typically allocated?
Correct Answer
C) $2.20 per $500 of consideration total, split equally between grantor and grantee ($1.10 each per $500)
Under 36 M.R.S. § 4641-A, Maine's real estate transfer tax is $2.20 per $500 of consideration, imposed one-half on the grantor and one-half on the grantee — i.e., $1.10 per $500 each.
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Related Topics & Key Terms
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Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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