If you’re ready to buy or sell in Ocean City, Maryland, you may be asking, “Who pays for transfer taxes in a Maryland property sale?”
Ryan Haley, broker and owner of Atlantic Shores Sotheby’s International Realty, provides key information you’ll need before you enter a Maryland real estate deal.
The responsibility of paying transfer taxes depends, in some circumstances, on the geographical location. However, in general, the State of Maryland residential Contract of Sale calls for an equal split (50:50) of the transfer tax between the seller and the buyer. This is according to the Maryland Association of Realtors Contract.
In Worcester County—which includes Ocean City, Bishopville, Berlin, Ocean Pines—our total transfer tax rate, in total, equals 1.66% of the purchase price. So, when that amount is split, it is 0.83% on the seller side and 0.83% on the buyer side.
How Much Is Transfer Tax in Worcester County?
Worcester Transfer Tax = Purchase Price x 1.66%
Who Pays Transfer Taxes in the Greater Ocean City Area?
This all depends on the geographic location, but customarily, the buyer is paying for the transfer taxes the Ocean City area. As can be seen in numerous transactions around Ocean City, since 2008, the transfer tax payment is split. However, for the longest time, it has become customary in the Greater Ocean City area for the buyer to pay for the entire transfer tax.
If you are a buyer in this highly competitive real estate market, one way you could get the attention of the seller when you make an offer is by paying the entire transfer tax amount. This is because these property owners selling their homes may remember that when they purchased the property, the transfer taxes were handled by the buyer. They also could have paid for the transfer tax back then.
So, who pays for transfer taxes in Maryland? In general, it is a split payment, but in this very tight real estate market, the buyer offers to pay for the entire amount.
We are here to be a resource for your next property sale or purchase. If you have any questions, please reach out to us, and we’ll be happy to assist you.