Viral Socialite

A real estate transfer tax is a one-time tax paid at the closing of a property, and is considered a stream of revenue for state budgets. This transfer tax though, once collected is not generally used for housing-related purposes. The tax is based on the value of a property as agreed to by the parties in a real estate contract.

In the excitement of selling or buying a home, often the real estate transfer tax cost is overlooked. Depending on locale, either the buyer or seller pays the tax at closing or escrow, but beware in New Hampshire both the buyer and seller pay, half of 1.5%!. In some states it can be a formidable amount, you should be prepared for what the transfer taxes will be, and who pays them, before you start a home search or list your home for-sale.

The good news is, thirteen states don’t have a real estate property tax. They are: Alaska, Idaho, Indiana, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Texas, Utah, and Wyoming.

The bad news is that the remaining thirty-seven states and The District of Columbia charge taxes on the transfer of a property. The tax is only levied once when a property is exchanged between parties, unlike general property taxes which are paid annually and are based on the assessed value. Real estate transfer taxes range from a low of .01% in Colorado to a high of 1.28% in Washington state.

Variations on transfer taxes include; in Arizona only charges a tax on deeds. However Alabama and Florida charge on deeds and mortgages. To avoid financial surprises, inquire early as to who pays (buyer or seller) and how much transfer taxes will be. Some states dictate who pays the tax, and some just want the tax paid. This cost can typically be negotiated between the parties. Consult an experienced real estate attorney.

A handy online link for transfer taxes for all fifty states.

[http://www.parealtor.org/content/AssetMgmt/Issues] Resource Center/Realty Transfer Tax/Transfer tax chart.pdf

By: Gary Carlsen

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The Internet is a rich source of information on the available real estate courses offered by various institutions. The firms and institutions that are listed on the Internet offer formal training and review sessions for potential and licensed real estate agents, brokers, and appraisers. Another form of training that agents, brokers and appraisers can avail themselves of consists of home study courses on real estate that are also available on the Internet. Home study includes books and online courses that a student must complete within a six-month time frame. The home study program is designed to help agents, brokers, and appraisers supplement the amount of hours they have to put in their training so that they would qualify for the state exams. Each course usually covers six to eight hours of modules and other forms of tutorials.

Courses

The courses included in this type of training mandatory or required courses in Ethics and Real Estate and in Real Estate Laws. These mandatory subjects are similar to those that are offered in online real estate courses for agents, brokers and appraisers. Elective courses are also included in this type of training where other areas of study on real estate are offered. Some of the elective courses include courses on Home Inspection, Environmental Laws, Real Estate Taxes and Risk Management. It is the aim of these courses to expose the students to other relevant subjects with regard to their profession.

Cost

The average cost of modules for the home study programs that are available vary range from forty dollars for the six hour courses while the average for the eight hour courses is fifty dollars. In availing for these home study courses, students must be very careful since orders are deemed final and the students pay for these courses even if they do not get to finish them.

The convenience and the efficiency that home study programs provide for potential agents, brokers and appraisers, give valuable support for aspiring realtors in their preparations for state exams and their eventual careers in real estate.

By: Gary Carlsen

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