Escrow & Title
Tennessee does not impose a state transfer tax on real estate sales. Instead, the state charges a:
ADocumentary stamp tax of $1.00 per $500
BRecordation tax of $0.37 per $100 of consideration✓ Correct
CConveyance fee of $50 per deed recorded
DSales tax of 7% on the purchase price
Explanation
Tennessee imposes a recordation tax (not a transfer tax) at a rate of $0.37 per $100 of consideration on deeds conveying real property.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
State-Specific Concepts
Transfer Tax
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