Maryland First Time Homebuyer Transfer Tax Credit

Maryland First Time Homebuyer Transfer Tax Credit

In this video Deirdre P Brown explains the Maryland First Time Homebuyer Transfer Tax Credit.

TRANSCRIPT

Hello this is Deirdre  Brown your settlement agent serving Maryland, DC and Virginia. Today we're going to talk about the Maryland First Time Homebuyer Transfer Tax Credit.

Normally when you purchase a property in the state of Maryland you will pay 0.5% transfer tax split equally between the buyer and the seller. If you're a first-time Maryland home buyer you can ask that the 0.25% that you would normally pay for the transfer tax is waived. In addition you can ask the seller to pick up your portion of the recordation taxes.  Your agent will need to write the request into the contract and there is special addendum for the GCAAR and MAR Sales Contract

 In order to receive this credit the buyer will need to affirm that you a plan to own the property as their principal residence and that you've never owned a principal residence in the state of Maryland.

if you have two buyers going on the deed and one person does not qualify then neither one of you qualify for this tax credit. However if the person who doesn't qualify is actually just a cosigner and  will not live in the property then you can apply for this credit.

If you have more title related questions you can reach out to me at closewithdee.com

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