Some states exempt assumed loans — tax only new money
Before you read
Test yourself first: 5 questions
Question 1 of 5
Transfer tax is $0.50 per $500 of sale price. What is the tax on a $300,000 sale?
Answer: A. $300,000 ÷ $500 = 600 increments × $0.50 = $300.
Question 2 of 5
A property sells for $325,000 in a state with a transfer tax of $0.50 per $500 of the sale price. What is the transfer tax?
Answer: B. $325,000 / $500 = 650 taxable units; 650 x $0.50 = $325.00.
Question 3 of 5
A home sells for $180,000 with a transfer (conveyance) tax of $1.00 per $1,000 of the sale price. What is the transfer tax?
Answer: B. $180,000 / $1,000 = 180 units; 180 x $1.00 = $180.00.
Question 4 of 5
An easement appurtenant:
Answer: A. An easement appurtenant runs with the land — the dominant tenement benefits, the servient tenement is burdened, and it transfers with the property. An easement in gross is personal.
Question 5 of 5
A tenant with 8 months left transfers the full remaining term to a coworker, who pays rent directly to the landlord. The original tenant has made:
Answer: B. Transferring the ENTIRE remainder = ASSIGNMENT. The original tenant stays secondarily liable unless the landlord grants a release/novation. (Consent requirements depend on the lease — the question states no such clause.)
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Transfer tax = (price ÷ increment) × rate — ROUND UP partial increments
- '$0.50 per $500': $310,250 → 621 increments (round up) × $0.50 = $310.50
- Customarily paid by SELLER (varies by state/contract)
- Some states exempt assumed loans — tax only new money
- Recording fees ≠ transfer tax (flat, small, usually buyer)
Transfer Tax & Doc Stamps: FAQs
Is Transfer Tax & Doc Stamps on the real estate exam?
Yes. Real Estate Math is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
