I bought a bank owned home and I was under the impression I only had to pay 1% transfer tax. On my end of contract just a normal contract says buyer and seller will split the transfer tax. The bank is the seller. Now its an executed agreement of sale and bank want me to pay the 2% transfer tax and is adding an addendum to the contact. My realtor said normally the buyer does pay the 2% transfer tax on bank owned homes buy I was not aware of this before making an offer or even after it was accepted. My mortgage person told me about it.
Its an additional $1,350.00 so its a nice chunk of money. How would you handle this? I dont want to pay it but I will if it means I don't get the house I will. Just seems shady to me...
As long as it does not break your deal go ahead and suck it up. You will know for next time.
Well, there's "bank owned", and there's "bank owned, by a Federal agency".. Federal agencies Do Not, Can Not pay the transfer fee (exempt by law) but the fee must still be collected, so the Buyer must pay it. As for other "bank owned", here anyway, they follow normal local custom. This is on like page 2 of the REO buyer guide.
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