Real Estate Math
An Allentown home sells for $210,000. The total Realty Transfer Tax rate is 2%. The buyer and seller agree the buyer will pay 1.5% and the seller will pay 0.5%. How much does the buyer pay?
A$1,050
B$3,150
C$2,100
D$4,200✓ Correct
Explanation
Buyer's RTT = $210,000 × 1.5% = $3,150. Seller's RTT = $210,000 × 0.5% = $1,050. Total RTT = $4,200 (2%). The parties can negotiate the allocation of transfer tax between themselves, though the default split in Pennsylvania is typically 50/50.
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