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Sam

Real Estate Transfer Tax (RETT) is a tax charged by state or local governments when the title to a property is transferred from one owner to another. This may vary from one state to another. Either the buyer or the seller will have to pay the tax.

For example, Shelly purchased a house worth $700,000 from Karen. The state government charged a tax, say $5000 while transferring the title from Karen to Shelly. This is known as the Transfer Tax.

Transfer Tax is based on a percentage of the sale value of the property. It is also charged as a flat deed registration tax or a combination of both. Exemption is given to transfer cases between spouses or between parents and children, transfer to government entities, etc.

RETT for real estate transfers involving the recording of a deed (generally in case of residential transfers) is administered and collected at the county or level. But for real estate transfers through sales (common to commercial real estate), the tax is collected at the state level.

Guest

I am in Penna. and I would like to know if I have to pay the transfer taxes as the seller or should the buyer pay them?

adonis · Posted: Thu Mar 19, 2009 11:10 pm Post subject:

Welcome Norma,

As far as I know, buyers and sellers split the transfer taxes between themselves and pay it in Pennsylvania.

Guest

I own a $600K property in Oregon that I cannot sell. I'm age 80. If I transfer title to my 4 children, who would eventually inherit it anyway, would they pay gift taxes, Fed and/or state?

wamacdonald1 · Joined: 08 Jan 2010 Posts: 2 1.58 Dollars($)

In Pennsylvania, we have a deed transfer tax for property transfers. Think of it as sales tax on real estate. The State of Pennsylvania charges 1% of the sales price and the municipality and school district USUALLY charge 1% between them for a total of 2% (i.e. 2% X 100,000 = 2,000). By custom, the buyer and seller split the cost, however, the cost is defined by the sales contract. 1% X SALES PRICE to buyer, 1% X SALES PRICE to seller. Some municipalities and/or school districts charge more or less. Deed transfer tax is not charged on refinance transactions. PA does not have mortgage stamps. You can find more information on the PA transfer tax (including exceptions) by following this link:

"http://www.anytimeestimate.com/PA_REAL_ESTATE_TAX/pa-transfer-tax.htm "

[Link deactivated as per forum rules. Thanks.]

jveenstra · Posted: Tue Jan 12, 2010 9:52 am Post subject: Transfer Tax

wamacdonald1, GREAT INFORMATION ON THAT PA WEBSITE. THANKS

Guest

I am refinancing my home for the second time within 2 two years. Two years ago I paid a transfer tax. Will I pay the transfer tax a second time on the same property , same owner the second time I refinance or is there a credit I am entitled to. I'm in Orange county NY

jveenstra · Posted: Tue Aug 31, 2010 11:03 am Post subject: NY Refinance

New York has a mortgage tax every time you get a mortgage, whether a purchase or a refinance.

With a refinance, it may be possible to avoid the state mortgage tax via the processing of a Consolidation, Extension, Modifiction Agreement.
Such an agreement must be approved by the old lender and the new lender. To process the CEMA costs money, usually costing in the area of $1,200 to $1,800.

Depending on the size of the mortgage, sometimes it is less costly to pay the tax than it is to process the CEMA to avoid the mortgage tax.

Guest

I own a $300K property in Montgomery, MD. I'm 69. Can i use quit claim deed to I transfer title to my child, would they pay gift taxes, Fed and/or state? is there a parent child exclusion ?

thanks,

Guest

When you refinance your current mortgage with same or new lender must you pay the transfer tax?

jerry · Posted: Wed Sep 22, 2010 2:31 am Post subject:

To John B,

You can sign a quit claim deed and transfer the property to your son. However, you will be liable for paying the gift tax as you're gifting the property. All the other taxes and fees will be paid by your son.

To Alex,

I don't think you will be liable for paying transfer taxes if you refinance the loan.

Thanks,

Jerry

Guest

should i have to pay a transfer tax when I refinance with same mortgage company

jameshogg · Posted: Tue Sep 13, 2011 9:58 pm Post subject:

Hi Guest,

As you will be refinancing with the same mortgage company, I don't think you will be liable for paying the transfer taxes. However, laws may vary from state to state.

Thanks

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Paying Transfer Taxes for transfer of Property Title