Hollywood, FL asked in Real Estate Law for Maryland

Q: Who pays the county & state transfer fees when the buyer is a first-time MD home buyer & the seller is an estate?

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1 Lawyer Answer
Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: MD Code, Real Property, § 14-104 provides, in relevant part:

Payment of recordation and transfer taxes of homes sold to first-time Maryland home buyers

(c)(1) The entire amount of recordation tax and local transfer tax shall be paid by the seller of improved, residential real property that is sold to a first-time Maryland home buyer who will occupy the property as a principal residence, unless there is an express agreement between the parties to the agreement that the recordation tax and local transfer tax will not be paid entirely by the seller.

(2) The entire amount of State transfer tax shall be paid by the seller of improved, residential real property that is sold to a first-time Maryland home buyer who will occupy the property as a principal residence.

There is no exception listed for sales by an estate to a first time home buyer. Basically, the seller must pay all STATE transfer tax due; and any LOCAL transfer tax and recordation tax will be by agreement negotiated between the parties, but if there is no agreement splitting the costs, then the seller pays by default.

Cedulie Renee Laumann agrees with this answer

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