Contracts
A real estate purchase contract typically specifies which party pays transfer taxes and recording fees. In the absence of a specific agreement in Montana:
AThe buyer pays all closing costs including transfer taxes
BLocal custom and practice typically dictate which party pays what✓ Correct
CThe lender pays all closing costs
DTransfer taxes are not required in Montana
Explanation
When not specified in the contract, closing costs in Montana are typically allocated by local custom and practice. Customary practices vary by county and market, so agents should advise clients accordingly.
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Key Terms to Know
Closing Costs
Fees 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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Math Concepts
State-Specific Concepts
Transfer TaxRecording Requirements
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