Real Estate Math

A Colorado buyer puts 10% down on a $450,000 home. The transfer tax is 0.01% of the sale price. How much is the transfer tax?

A$4.50
B$45.00✓ Correct
C$450.00
D$4,500.00

Explanation

Transfer tax = $450,000 × 0.0001 = $45.00. Colorado's state documentary fee is $0.01 per $100 of the purchase price (0.01%), so for a $450,000 home, the fee is $45.

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