Transfer Tax – Free Report

Newark, DE Mortgage Banker, Mark Coffman of Pike Creek Mortgage interviews
Real Estate Attorney, Michael Isaacs of Fox Rothschild on Transfer Tax Questions

Delaware transfer tax is a total of 3% (1½ percent to the State and 1½ percent to the county or municipality). This amount is split between the buyer and seller of real estate, unless the parties agree otherwise.

The State offers NO Property Transfer Tax Exemption; however, the New Castle County has an exemption - .75% of county transfer tax fee - for first time home buyers (FTHB).

Tax exemptions are issued by local governments as a way for First Time Home Buyers to save money.  The exemption lowers the amount you have to pay.  A transaction between a parent and a child or sibling to sibling are eligible for a transfer tax exemption.

  • In the City of Wilmington, you are a first time buyer eligible for the Property Transfer Tax Exemption if you have not purchased a residence in the City in the last three years.
  • In unincorporated New Castle County, you can never have owned residential property anywhere (including other states or foreign countries) to qualify for the exemption.
  • If you answer “NO” to previously owning real estate to get the exemption, and you have owned property, then this is considered tax evasion.

AREAS THAT DO NOT QUALIFY FOR FTHB EXEMPTION:INCORPORATED, New Castle County

  • SMYRNA (Town) Note: Part of Smyrna is in Kent County
  • ARDEN (Village)
  • BELLEFONTE (Town)
  • NEWARK (City)
  • ELSMERE (Town)
  • NEWPORT (Town)
  • NEW CASTLE (City)
  • DELAWARE CITY (City)
  • MIDDLETOWN (Town)
  • ODESSA (Town)
  • TOWNSEND (Town)
  • AREDENTOWN (Village)
  • ARDENCROFT (Village)
  • CLAYTON (Town) Note: Part of Clayton is in Kent County

Newark, Delaware - based mortgage expert Mark Coffman specializes in providing information to Delaware residents that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.

 

Mark Coffman
NMLS #147744
Pike Creek Mortgage Services, Inc.
2100 Drummond Plaza, Bldg. 2
Newark, DE  19711

Tel  302-892-2811 x140
Fax  302-250-4746

mcoffman@de-loans.com
www.marksmortgagetips.com

Michael J. Isaacs
Partner
Fox Rothschild, LLP
919 N. Market Street, 13th Floor
Wilmington, DE 19801

Tel  302-622-4220
Fax  302-656-8920

misaacs@foxrothschild.com
www.foxrothschild.com



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