Which term is defined as a tax that’s applied when property changes ownership quizlet?
transfer tax. the transfer of a property from one person to another triggers a tax. This tax becomes payable when the deed is recorded, sometimes through the. purchase of “stamps” from the recorder of the county in which the property is located.
What’s a typical reason that a seller might opt for a short sale?
They’ll have to include lots of financial docs (pay stubs, bank statements, list of assets) to prove financial hardship. Classic reasons for requesting a short sale include family or medical emergencies, job loss, or sudden loss of income.
Which term is defined as a tax that is applied when property changes ownership?
A transfer tax is a charge levied on the transfer of ownership or title to property from one individual or entity to another. A transfer tax may be imposed by a state, county, or municipality.
Who’s responsible for disclosing the property taxes to the buyer quizlet?
to disclose items that are required to be disclosed, to be honest, and to not hide defects. In full disclosure states, the seller’s agent has a responsibility to notify the seller of the duty to disclose all known material facts.
What is the greatest power the government has to affect the value of real property?
One of the most controversial and highly litigated real estate doctrines is the power of the state or federal government to take private land for public use under certain circumstances without the landowner’s consent. This power of the sovereign is called “eminent domain.”
How are real estate transactions affected by the Taxpayer Relief Act of 1997?
The TRA reduced capital gains tax rates in a number of different ways, including: For property held over 18 months, the 20% maximum rate applies (10% for those in the 15% bracket). A 25% maximum rate will apply to gains on the disposition of real estate assets otherwise eligible for the 20% rate.
Does short sale mean cash only?
A short sale means they won’t earn any profit from the sale of the house – the bank or mortgage lender gets all the sales proceeds.
Can you negotiate a short sale?
Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.
Will a bank accept a short sale offer?
Many lenders only accept short sale offers that approach the fair market value of the property, so a bank may decline a significantly lower offer, even if the homeowner has already approved the offer.
What is an estate tax What does it do?
The Estate Tax is a tax on your right to transfer property at your death. … The total of all of these items is your “Gross Estate.” The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.
Are real estate transfer taxes deductible?
You can’t deduct transfer taxes and similar taxes and charges on the sale of a personal home. If you are the buyer and you pay them, include them in the cost basis of the property. If you are the seller and you pay them, they are expenses of the sale and reduce the amount realized on the sale.
Can I transfer ownership of my house to my son?
As a homeowner, you are permitted to give your property to your children at any time, even if you live in it.
What is a red flag in real estate?
A home that has been on the market for a long time raises red flags. “This typically indicates some deficiency with the listing,” Glass says. He points out that some of these homes may have undisclosed physical problems, or that the real estate photos don’t accurately represent the home.
Who is exempt from TDS?
Other exemptions from of the TDS include transfers from one co-owner to another, transfers made to a spouse or child, grandchild, parent, grandparent or other direct ancestor or descendent; transfers between spouses in connection with dissolution of marriage, and various transfers to the state for failure to pay …
Do Realtors have to disclose death in a house in California?
Death at the Property
In California, sellers must tell the buyer if a death in the home has occurred anytime in the past three years. This includes death by most natural causes (certain types of deaths, like those from AIDS, cannot be disclosed).