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Maine real estate Transfer Tax Legislation

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In any Maine Real Estate transaction a closing cost to buying a home is the Maine State Transfer Tax, currently set at the confusing $2.20 per every $500 of purchase price split evenly between the buyer and the seller, phew!! So basically for every $1000 of purchase price the buyer and seller are required by state law to pay $2.20 each to the State of Maine, thus on a home that sells for 200K, both parties would ultimately pay $440 each, not a small figure but far better than some states that have transfer tax rates as high at 3% of the entire purchase price!

Recently multiple new legislative initiatives are being proposed that would raise the this Maine real estate transfer tax to as high as 1% of the purchase price of the transaction, thus the $440 number would jump to $2,000 greater than 4 times the current amount that would ultimately dampen real estate sales in Maine as closing cost would become increasingly higher and place ownership out of reach for many first time home buyers. 

 

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