What is a real estate transfer tax?

A Real Estate Transfer Tax is a tax imposed by the state of Washington when real estate property is sold or transferred. This tax is usually a percentage of the total sale price of the property. The amount of tax depends on the county the property is located in and can range from .25% to 2.5%. The funds collected from this tax are primarily used to support government-funded programs and services, such as schools and road maintenance. When buying or selling a property in Washington, the buyer is typically responsible for paying the transfer tax. It is paid at the time the deed or title is transferred from the seller to the buyer. The buyer’s closing costs will generally include this tax, as well as other taxes, fees, and costs associated with the transaction. In some cases, the buyer and seller may come to an agreement in which the buyer agrees to pay the transfer tax, but the seller agrees to pay the higher amount. This happens when the buyer is paying more for the property than its worth. In that case, the buyer may be willing to pay the transfer tax to reduce the total amount they are paying for the property. Generally, foreign buyers may be exempt from paying the transfer tax if they are purchasing real estate as part of an investment. However, they may still need to pay the tax if they are buying a home as a primary residence. In any case, consulting with a lawyer or real estate agent can help buyers and sellers understand their obligations and how the transfer tax affects their transaction.

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What is a real estate transfer tax?

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