Making your way through a HUD-1 at settlement always feels a little rushed. As a real estate agent, I’m used to it. But if you’re only buying and selling a couple of houses in your lifetime, it’s not a regular event, and can lead to some head scratching. And the way the new HUD-1 sheets are figured can make even the most astute real estate agent a little fuzzy when it comes to explaining what is what. I recently had such a moment when the subject of transfer and recordation taxes came up.
In Montgomery County, MD, transfer and recordation taxes for purchases are found on lines 1203, 1204, 1205 and 1206 on the HUD-1. Line 1203 is for the purchaser, and lines 1204-6 are for the seller. Typically, these taxes are split evenly between the buyer and the seller. The one exception is Read more