If you are selling a home in Aurora, you may be curious about transfer taxes. Real estate transfer taxes are fees levied by local governments when a real property, such as a home, changes ownership. Aurora property owners have to be aware of the Aurora transfer tax, and this guide will serve as a helpful tool to help demystify how this tax works and what you can expect to pay when selling your home. Additionally, we will explain possible transfer tax exemptions you might qualify for and how paying your Aurora transfer tax can impact your capital gains earnings. Real estate transfer taxes are charged by state or local governments when property ownership is transferred from one individual to another. According to the Federal Trade Commission, these taxes are due when the title to a property, essentially the document that confirms your legal ownership, is officially passed to a new owner. This can occur through sales, inheritance, or gifting of property. The amount owed in transfer taxes can vary widely based on the property’s location. Different states, counties, and cities can establish their own rates and regulations for these taxes. Transfer taxes primarily serve as a means for local and state governments to generate revenue, funding various public services and infrastructure projects. Now that you know what a real estate transfer tax is, you might be curious about who is on the hook for it. The buyer, the seller, or somewhere in between? Like most things related to real estate, it depends! Different cities, states, and municipalities have their own rules governing the liability of transfer taxes, and Aurora is no different. Typically, the Aurora transfer tax is the responsibility of the seller (or grantor). However, this can be negotiated in the terms of the sales contract. It’s also important to note that it is illegal for the buyer (or grantee) to accept the property transfer if the transfer tax has not been paid.What are transfer taxes?
Who pays for transfer taxes?
