If you’re selling your San Leandro home, you might have questions about transfer taxes. How do they work? How much are they? Who pays for them? Don’t worry. Transfer taxes aren’t complicated, and HomeLight is here to help.
Transfer taxes are fees levied by local or state authorities when real property (like a home) changes ownership. Transfer tax rates can differ significantly based on location and can have a big impact on the overall cost of your transaction and your bottom line.
This guide will explain how transfer taxes work in San Leandro, including their cost, who is liable for them, and any possible exemptions. Additionally, we will explain how transfer taxes can affect your capital gains burden and why working with a real estate agent is a great idea.
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What are transfer taxes?
Real estate transfer taxes are charged by state or local governments when property ownership is transferred from one individual to another. According to the Federal Trade Commission, these taxes are due when the title to a property, essentially the document that confirms your legal ownership, is officially passed to a new owner.
The amount owed in transfer taxes can vary widely based on the property’s location, as different states, counties, and cities establish their own rates and regulations. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects.
Who pays for transfer taxes?
The responsibility of who pays for transfer taxes varies depending on the city, state, or county. In Alameda County, where San Leandro is located, the seller pays for any real estate transfer taxes accrued due to a property changing hands.
What are the types of transfer taxes?
Transfer taxes vary according to local regulations but can typically be categorized into three types: state, city, and county. Here’s a brief overview of how they work in San Leandro.
State transfer taxes
For property transfers in California, a documentary transfer tax of $0.55 per $500 of the home’s sales price value is applied to any non-exempt transaction. However, additional taxes may apply depending on your specific location in California.
County transfer taxes
In Alameda County, where San Leandro is located, the county transfer tax rate is $1.10 per $1,000 of the property’s sales price.
City transfer taxes
San Leandro’s city transfer tax rate is $11.00 per $1,000 of the property’s sales price.
Other transfer fees
Beyond transfer taxes, there may be additional fees to consider, such as those from a homeowner’s association or local neighborhood organization. Since these can vary widely based on location, consulting a professional is advisable.
If you’re selling your home without a realtor, seeking professional advice can clarify some of the nuances of the process and provide a better understanding of what to expect regarding the pros and cons of selling a house without a realtor.
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