Transfer of PropertyQuestion 100 of 120

The documentary transfer tax in California is generally calculated on the:

a.Assessed value
b.Loan amount
c.Appraised value
d.Consideration paid, less any assumed liens

Explanation

The documentary transfer tax is based on the consideration or value of the property conveyed, excluding the value of any liens the buyer assumes. Counties impose the base rate, and some cities add their own transfer tax. It is typically paid at closing through escrow.

Law Reference: CA Revenue and Taxation Code

Practice all 120 questions free — no signup required.

Related questions on this topic

Last reviewed: · editorial process

PrepPass Editorial Team · Verified against California DRE Real Estate Salesperson License Exam · How we review
Report