Silver Spring, MD asked in Real Estate Law for Maryland

Q: Under Section 14-104(c) Does the Seller pay ALL transfer and recordation tax unless an addendum is signed

It has been my experience that Title companies automatically split it under the MAR Contract except to charge the seller the full amount of the State transfer tax Is this correct?

Related Topics:
1 Lawyer Answer
Daniel Staeven
Daniel Staeven
  • Annapolis, MD
  • Licensed in Maryland

A: The title company only operates from the contract and will split the transfer and recordation taxes if the contract so states. Your question missed the second part of Tax Property 14-104(c) which says "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." Most MAR contracts already have the recordation and transfer taxes split between the parties but the seller pays the whole state transfer tax, usually .25%, in the case of a first-time buyer. If you want the seller to pay all the recordation and transfer taxes, that is when you need an addendum to document that change from the standard contract.

I hope this answers your questions about this type of transaction.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.