Legal Question in Real Estate Law in Maryland

transfer tax at settlement of property

i've gotten a letter from the title co. that handled my settlement June 2007 stating that they were unaware of a recent increase in taxes on property transfers and collected from me, the seller, and the buyer too little $$. they now want us to send our portion of funds due. my view is that i have a signed complete legal settlement document and their ignorance is not my problem. are they right in asking us to change this document and pay this money?


Asked on 8/08/07, 3:48 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: transfer tax at settlement of property

You are responsible to pay whatever the correct amount is due for transfer and recordation taxes. Your legal obligation is determined by the contract you signed to sell the property, and in that document you agreed to pay half of these taxes. The settlement firm should have had the correct amount at settlement, but their failure to do so doesn't mean they should have to subsidize your costs. It may be that they have yet to record the documents because of this, in which case the transaction is incomplete.

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Answered on 8/08/07, 4:39 pm


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