Under Delaware law, how is the realty transfer tax allocated on a residential purchase?
Why The 3% transfer tax is typically split equally between buyer and seller — 1.5% each — unless otherwise negotiated Is Correct
Answer C: The 3% transfer tax is typically split equally between buyer and seller — 1.5% each — unless otherwise negotiated
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
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Key Terms to Know
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
State-Specific Concepts
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