Escrow & Title
In Iowa real estate closings, which party is typically responsible for paying documentary stamps (transfer taxes)?
AThe buyer only
BThe seller, unless negotiated otherwise✓ Correct
CSplit equally by statute
DThe closing agent
Explanation
In Iowa, the seller is customarily responsible for paying documentary stamps (Iowa real estate transfer tax), though the parties may negotiate this allocation in the purchase agreement.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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.
State-Specific Concepts
Transfer Tax
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