Paid only on the new amount of money (cash down and new financing), not on any assumed financing.

The DOCUMENTARY TRANSFER TAX is a tax that is applied to the consideration paid or money borrowed when transferring San Diego, California real estate, except for any remaining loans or liens on the property. This tax is computed at the rate of 55 cents for each $500 of consideration or any fraction thereof that exceeds $100. The consideration is any amount of cash payment plus any new loans. However, this tax does not apply to any liens or encumbrances that remain on the property as part of the transfer. If a house were sold for $230,000 and a buyer assumed the old loan of $30,000, the documentary transfer tax would be $220.

$200,000
----------- x $.55 = $220
$500

The documentary transfer tax is charged to the seller and is handled as part of the escrow.

If any old loans or liens are to remain on the property, this fact must be stated on the deed or on a separate paper filed with the deed. Then add the value of the cash down payment and any new loans together with any remaining loan on the property to find the total selling price.

More

Client Services | Real Estate Info | Buyer/Seller Tips | Resource Center
Home | Property Search | Loan Approval | Your Home's Value | Local Schools | Site Map | Contact Us

Privacy Policy | Copyright © 2010 www.sandiegohomes-mls.com. All rights reserved.