Are you a Harford County homeowner looking to sell your home, but you have questions about things like closing costs and transfer taxes? It’s understandable. Transfer taxes can be a confusing part of any real estate transaction, and dealing with the Harford County transfer tax is no exception. Thankfully, it doesn’t have to be complicated. This short guide will help you better understand how transfer taxes work in Harford County, breaking down who pays for what, how much is owed, and any possible exemptions that might apply. 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 of a property, essentially the document confirming legal ownership, is officially transferred to a new owner. This can occur through sales, inheritance, or gifting of property. The amount owed in transfer taxes can vary significantly based on the property’s location, as different states, counties, and cities often establish unique rates and regulations. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects. In Maryland and Harford County, transfer tax liability is usually determined by the terms of the sales agreement. In instances where the tax liability is not made explicit, it is assumed that the transfer tax will be split between the buyer and the seller (unless one or both parties are exempt).What are transfer taxes?
Who pays for transfer taxes?
