What is a transfer tax?

In certain cities and in the County of Los Angeles when a home sells  a transfer tax is levied upon transfer of the property.

LA County charges $1.10 per $1000 of purchase price, Burbank charges $ .55 per $1000 and City of Los Angeles charges $4.50 per $1000 or purchase price.

While the county tax is not a huge amount, the LA tax can add up.  For example……on a $400,000 home:

LA County Tax……………………….$  450

LA City Tax(if applicable) ………$1,800

In this example if you purchased a home in the city of Los Angeles both taxes would apply and add $2250 to your closing costs.

Normally the seller covers this cost.

This entry was posted on 17. September 2008 at 04:57 and is filed under Buyer Information, Blogroll. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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