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?
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.
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