anyone knows that who is responsible for the Transfer tax? (documents, 2013)

[tianwaifeixian]

Hi All,
I am shopping around for the loan of a new construction. The builder's mortgage company provided me a GFE with #8 Transfer Tax=$228, but my broker didn't have this one listed on his GFE. My broker also told me that in North Carolina, it should be the builder's resposibility not buyer's and builder's mortgage company should not even list this in the GFE at all! But my builder said this is required to be collected from us.

Can anyone tell me who should be paying this Transfer tax?

Thanks!

[MikeJaquish]

Originally Posted by tianwaifeixian

Hi All,
I am shopping around for the loan of a new construction. The builder's mortgage company provided me a GFE with #8 Transfer Tax=$228, but my broker didn't have this one listed on his GFE. My broker also told me that in North Carolina, it should be the builder's resposibility not buyer's and builder's mortgage company should not even list this in the GFE at all! But my builder said this is required to be collected from us.

Can anyone tell me who should be paying this Transfer tax?

Thanks!

Your contract should tell you whose cost it is.

Here is the wording from the NCAR Standard Form 2-T, Offer to Purchase and Contract:
"(g) Deed, Excise Taxes: Seller shall pay for preparation of a deed and all other documents necessary to perform Seller’s obligations under this Contract, and for state and county excise taxes required by law."

If you are using a builder's contract, responsibility for the expenses should be defined in it, too.