Heads up! Deed Transfer Tax is increasing in Mahone Bay
We have been advised by the Town of Mahone Bay that Deed Transfer Tax will be increasing from 1.25% to 1.5% effective August 1, 2019. However, documents executed, or agreements entered up to and including July 31, 2019 will attract Deed Transfer Tax at old the rate of 1.25%.
So, for instance, imagine that you have been thinking about making an offer on a house in Mahone Bay with a purchase price of $300,000 and a closing date of September 30, 2019. If the Agreement of Purchase and Sale is dated July 31, 2019, Deed Transfer Tax payable to the Town on closing will be $3,750, but if the Agreement is dated August 1, 2019, the Deed Transfer Tax payable on closing would be $4,500.
With this in mind, if you are on the cusp of making an offer in Mahone Bay, it might be a good idea to talk to your realtor or lawyer about submitting a condition offer before the deadline.