Title Insurance rates are not regulated by the State of Virginia, therefore, title rates can vary between title insurers. The State of Virginia has three transfer taxes and two recordation taxes (think of the recordation tax as a mortgage tax stamp). The buyer typically pays the state and county deed transfer tax. The seller pays a transfer tax to the state, also known as the VA Grantor tax. Should there be a mortgage on the property, the buyer will pay a recordation tax to the State of Virginia and the county. Please send me an E-mail if you see an error or want to make a comment.
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Who pays the transfer and recordation tax in Virginia?
The home seller typically pays the state transfer tax, called the grantor's tax. The cost is one percent, or $1.00/$1,000 of the transaction amount.
In the Northern Virginia region, the Commonwealth levies an additional grantor's tax of $0.15 per $100 (or portion of $100) of the sales price or fair market value of the property, excluding any liens or encumbrances. The seller usually pays this tax if applicable.
The buyer/borrower is responsible for the State, County/City Transfer Tax and the State, County/City Mortgage Tax. Ouch!
Who Sets the Rates for Title Insurance in Virginia?
Title insurance firms set their own prices and may work with any prospective insured to get a better deal.
You should search around to see which business offers the most affordable prices.
You may want to ask about costs for additional related services, such as title search, title examination, title commitment preparation, settlement fees, release fees, notary fees, courier fees, and document preparation fees, in order to conduct a fair cost comparison.
SOURCE: Title Insurance Consumer’s Guide