When real estate is transferred in MA, real estate transfer taxes (sometimes known as deed recording taxes) are charged. Different from annual real estate property taxes, transfer taxes are charged only once at closing. It is important for home buyers and sellers to be familiar with what a transfer tax is and the cost that it may affect money needed at closing. Below is information on MA real estate transfer taxes and who pays them.
MA Real Estate Transfer Taxes and Who Pays Them
The transfer of real estate means a grant, sale, exchange, assignment, quitclaim, contract for sale, or other change of ownership in title to real property. In MA, sellers take on the burden of real estate transfer taxes. The sum of MA real estate transfer taxes is calculated by the market value of the home and the tax rate of $4.56 per thousand. It is included as part of closing costs for sellers and is commonly required before the deed files. The determination of the tax is normally the responsibility of the closing attorney and is reflected as part of the settlement statement.
Information On MA Real Estate Transfer Taxes
The amount of tax charged is based on the applicable rate at the time a closing completes and the deed is recorded. Transfer tax rates do change from time to time. Proposed increases are often met with resistance. Ask a real estate professional for applicable information on tax rates. You should also check with your tax preparer on whether real estate transfer taxes aredeductible on your federal and/or local tax return. Information on MA real estate transfer taxes and who pays them, as provided above, is strictly general information. Contact Peter DaMore at Law Offices of Peter T. DaMore Jr. by calling 781-229-7900 or emailing email@example.com with any questions.