Escrow & Title
Pennsylvania's Real Estate Transfer Tax is paid:
AAnnually with property taxes
BAt the time of recording the deed✓ Correct
COnly if the sale price exceeds $500,000
DBy the listing broker on behalf of the parties
Explanation
Pennsylvania's Realty Transfer Tax (RTT) is paid at settlement when the deed is delivered, and the deed stamps are affixed when the deed is recorded. The RTT must be collected and remitted to the state and local taxing authorities as a condition of recording the deed.
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Key Terms to Know
Transfer Tax
A 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).
Closing CostsFees 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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
State-Specific Concepts
Transfer Tax
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