Settlement
Transfer tax
A state or local tax on conveying real property, usually charged per unit of price
Also called a documentary stamp or deed tax. It is typically expressed as an amount per $500 or per $1,000 of the sale price, and who customarily pays it varies by state and even by county.
How the exam asks about it
Count the units first, then apply the rate. Applying the rate to the whole price before dividing is the standard arithmetic error.
Related terms
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