Frank - I am guess the tax is on the sales price of the home and it is due from the seller.  In Florida we have a documentary stamp tax on the deed - so the seller pays .70 per hundred dollars or $3,500 on the sale of a $500,000 home.

Thanks Glenn,

Yes on the sales price. 

Frank 

Frank,

In PA we have in the Counties surrounding Philadelphia a $1.00 per $100.00 of sale price or 1% of sale price going to the County and an additional 1% going to the State...In Philly or some other areas in can be as high as 4%...these fees are usually split equally between buyer and seller! And you thought you had it bad! Thanks,   Fran

P.S. Thanks for referring to the title company as a 'non-ABA'!!!

Frank - thanks for the clarification. :)

It will be interesting to see the long term effect of this, price wise. And counter offer and incentive wise.

Kevin - yes it will be interesting to see the long term effect.

Doesn't your non-ABA title company have an ABA with First Savings Mortgage Corp? 

Thanks for the grantor's tax reminder.  Changes like this if they go unnoticed on a few files at the beginning of a year can really hurt.

Tom - if you miss the grantor's tax on a closing, does the title company have to pay for it?  Or, do you pursue the seller after the closing?

Hey Tom!

Touché!

Yep, they have some affiliations that I am not 100% certain that I agree with since I am ABA.

For clarification, they are non-Aba with me.  

Frank 

Glenn: Our docs do allow for collection post-closing from responsible party, but our practice is to eat losses on our errors.  So, if we flat out missed the law change, we'd eat it; but if there was some delay in recording through no fault of our own, it would be a business decision (based on source of the transaction, amount at issue, etc.) whether we pursued the seller.  The need for such a decision would more often arise outside VA (where there is an immediate recording requirement and problems are discovered quickly).  --Tom

Tom - thanks for your answer.

Glenn - Florida is considered a high closing cost State while Virginia used to be relatively low.  In Sept 2004 they raised one of the tax stamps and Virginia in effect became a mid-priced State.  With this next change, it will join Florida.  If this goes in effect I would guess that's a 70% (or more) increase compared to August 2004. 

Fran - the change Frank is talking about is just one of the fees.  It's the Grantors Tax which the seller pays.  In addition, the buyer will pay for the State Tax which will be around $1225 for a $500k home as well as a County Tax on the deed (in Fairfax that will be just over $400).  If the buyer has a mortgage, the State and County will get an additional $1300 or so.  Thus it's not as cheap as it appears.  Not as high as PA, but not cheap.

I admit I'm intrigued by this 'Regional Congestion Relief Fee'.  Here's a novel idea:  divert half of State income, sales and property taxes to their respective local governments and see if we really need this assessment.

Frank, is this for the entire State or just Northern Virginia?  I'd like to see everyone involved since NoVA has generously funded much of what goes on in Virginia.  Time to have everyone else step in to help NoVA.

Frank, were you able to research Tchaka's question?  Is this moving forward 1/1/08 as planned and in which counties?  Thanks. --Tom