Does this sound like BS?

[Allen Lopez]

So I found an apartment complex in Baton Rouge la. 4 units, ROI is 12%. But the realtor is telling me this: “Also, I forgot to mention that if you will be required to pay one time fees for title transfers this fee will be equal to about 2% of the Purchase Price. “ I have never heard of this. I know that I have to pay for the tittle transfer never heard of it being 2% of purchase price. Is this because it’s a multi family home?

[Jay Hinrichs]

Originally posted by @Account Closed:

that is crazy. it seems like there's more to the story... 2% for a clean title which doesn't sound clean 

some states have excise or transfer tax like this.

For instance in Washington state you have excise tax of 1.8 %  that the seller pays ( customary for seller )  So when you sell your 1 million dollar home in Seattle for instance the Seller will have a 18,000 .  tax to the state.. and it MUST be paid to record the deeds.. you have to go to a window at the court house and pay the excise then with that reciept you walk over to the recorders and record your deed.. and of course most of the time the Title company folks are doing this.. but its OK to do your own escrows in Washington its not an attorney state.

this goes to the state..  ( Washington has no state income tax)  but its negotiable.. and a seller in a hot market might say NOPE you pay it if you want this deal.. 

this has nothing to do with clean title.. totally different things.. 

so I am not familiar with that state if there is a transfer tax or excise tax upon the transfer of real estate but i am sure someone with some experience will hopefully pop on here and enlighten us..