Real Estate Transfer Tax

Real Estate Transfer Tax is a fee imposed by local or state governments when a property changes ownership. Essentially, it's a tax based on the sale price of the property and is typically paid by the seller at the time of closing. The amount varies by location and can help fund public services like schools and transportation. This tax is separate from property taxes, which are assessed annually based on the property’s value. Understanding this tax is important for both buyers and sellers since it can impact overall transaction costs.