The State of California does not charge a transactional tax on real estate purchases. Most likely this has to do with new HUD 1 regulations about how transfer taxes are listed on the statement. There should be a credit for a similar amount on the statement.
Ask the title company and/or your realtor to make sure. The SFAR Purchase Contract specifies that the seller pays the transfer tax so it would have to be specified in the additional terms or in a separate addendum if you were to pay it.
Lance King/Owner-Managing Broker
You are a buyer, so why are you paying a "transfer Tax", as some have mentioned. In SF, the seller pays the transfer tax. Furthermore, I also have not heard of this "state tax stamp". Can someone in lending explain this further?
Paragon Real Estate Group
I've never heard of this nor have I seen it on any HUD-1 forms. I'd recommend you ask your mortgage broker what it is.
City and county transfer taxes are paid to the city and county. Who pays the transfer tax is done according to "local custom". In SF the seller pays the transfer tax. In parts of San Mateo the seller pays the county tax and the buyer pays the city tax. Questions about who pays what can be answered by your agent and the escrow officer.
Historically folks have been warned about mortgage brokers charging fees that are over and above. The HUD-1 I mentioned is a standard form from the Housing and Urban Development department of the US government. Look for that document and also shop around for loans.
But first ask and listen to the answer of the person that you talked to. It could be a simple misunderstanding but then again it might not.
Yes, its referring to the documentary transfer tax along with a city transfer tax if applicable depending on the location. The rate for the transfer tax varies from the city and that information would be attained either by your loan agent or the title/escrow company. The documentary transfer tax is paid for by the seller and it has to be documented on the Good Faith Estimate along with the Initial Fees Worksheet which shows an itemized breakdown of the closing costs.