Transfer Tax Increase that is to be paid by the Borrower

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• January 23, 2017 at 12:51 pm EST #10567
  April

  Participant

  We have a situation where the borrower is paying her soon to be ex husband a $20,000 buy out of their home. We contacted our attorney because the borrower is going to be paying all fees and we needed to know how to charge the Transfer Tax. He said that he was going to do the deed for the buy out price so in our Zero Tolerance we disclosed $20.00. Once the title work was done and we received the deed, he has changed that and it is now a trustee deed for the Fair Market Value, which would change the transfer tax to $64.00. We sent out a revised LE with the change upon finding this information out. Should this have been done differently with this being in the Zero Tolerance category?

  January 26, 2017 at 2:07 pm EST #10579
  rcooper

  Member

  It sounds like you took the appropriate action.

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