Georgia Multiple Listing Service (MLS) Practice Exam

Question: 1 / 400

How is the transfer tax typically calculated in a real estate transaction?

Based on property value

The transfer tax in a real estate transaction is typically calculated based on the property value. This approach aligns with many states' practices, where the tax is a percentage of the sale price of the property being transferred. By assessing the tax based on property value, it ensures that the tax reflects the value being exchanged in the transaction.

This method is straightforward and provides a clear connection between the amount paid for the property and the tax obligation, which helps facilitate the collection process for the local government. The use of property value rather than other factors ensures that the system remains equitable across different transactions, regardless of the financing methods or the financial status of the parties involved.

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Based on the loan amount

Based on the buyer's income

Based on the seller's profits

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