What does a homeowner pay when transferring property to a new owner?

When a homeowner transfers property to a new owner, they are typically responsible for paying a transfer tax. This tax is imposed by the state or local government when real estate ownership changes hands. The rate or amount of the transfer tax can vary by location and is often calculated based on the sale price of the property.

The transfer tax is distinct from fees related to other processes, such as reassessment fees, which may occur when a property is assessed for tax purposes, or title search fees, which cover the cost of examining the historical records of the property’s ownership to ensure there are no liens or claims against it. A property transfer fee can also refer to various administrative fees charged by certain jurisdictions, but it is separate from the specific tax imposed on the transfer itself. Overall, the transfer tax is a primary obligation that arises directly from the action of transferring property ownership.