Escrow & Title
In Hawaii, the conveyance tax (documentary stamp tax) is calculated based on:
AA. The appraised value of the property
BB. The consideration paid for the property (purchase price)✓ Correct
CC. The county's assessed value
DD. The original purchase price when the seller acquired the property
Explanation
Hawaii's conveyance tax is based on the actual consideration paid for the property (the purchase price), with graduated rates that increase for higher-priced properties.
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Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Math Concepts
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