Escrow & Title
In Pennsylvania, how is the Realty Transfer Tax customarily split between buyer and seller?
AThe buyer pays 100% of the transfer tax
BThe seller pays 100% of the transfer tax
CThe tax is customarily split equally between buyer and seller, though the contract may specify otherwise✓ Correct
DThe title insurance company pays the transfer tax
Explanation
Pennsylvania imposes a Realty Transfer Tax of 1% at the state level plus an additional 1% local transfer tax (2% total in most areas). By custom, the tax is typically split equally between buyer and seller (1% each).
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