When real estate is transferred in Portsmouth NH, real estate transfer taxes (often referred to as deed recording taxes) are charged. Unlike ongoing real estate property taxes, transfer taxes are applicable only once at settlement. It is important for home buyers and sellers to be knowledgeable on what a transfer tax is and what it may contribute to money needed at closing. This article provides an explanation of Portsmouth NH real estate transfer taxes and who pays them.
Portsmouth NH Real Estate Transfer Taxes and Who Pays Them
The transfer of real property means a grant, sale, exchange, assignment, quitclaim, contract for sale, or other conveyance of ownership in title to real property. In Portsmouth NH, both buyers and sellers must pay real estate transfer taxes. The sum of Portsmouth NH real estate transfer taxes is calculated by the market value of the property and the tax rate of $7.50 per thousand. It is levied as part of closing costs for both buyers and sellers and is traditionally required before the deed put on record. The figuration of the tax is often the responsibility of the closing agent and is detailed as part of the settlement statement.
An Explanation Of Portsmouth NH Real Estate Transfer Taxes
The amount of tax due is based on the established rate at the time a closing completes and the deed is recorded. Transfer tax rates do change occasionally. Suggested increases are generally opposed by property owners. Consult with a real estate agent for up-to-date details on tax rates. You may also want to check with your tax preparer on whether real estate transfer taxes aredeductible on your federal and/or local tax return. An explanation of Portsmouth NH real estate transfer taxes and who pays them, as provided above, is only an introduction. Contact John Wells at Wellsco Realty by calling 978-518-1481 or emailing email@example.com for more specific information.