Posted: Tue Apr 06, 2004 11:38 pm Post subject: Paying Transfer Taxes for transfer of Property Title
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.
Norma Guest
Posted: Thu Mar 19, 2009 7:51 pm Post subject: Tranfer Taxes
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?
As far as I know, buyers and sellers split the transfer taxes between themselves and pay it in Pennsylvania.
Thomas Heumann Guest
Posted: Tue May 26, 2009 2:12 pm Post subject: transfer house title to children
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?
Sam
