Escrow & Title

Iowa's transfer tax (documentary stamps) on real estate is calculated based on:

AThe property's assessed value
BThe sale price of the property, at a rate set by state law✓ Correct
CThe mortgage amount
DThe commission paid to the real estate brokers

Explanation

Iowa imposes a real estate transfer tax (Iowa Code Chapter 428A) based on the sale price of the property. The tax is paid to the county treasurer at the time the deed is recorded and is typically paid by the seller.

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