The full explanation
State or local law decides whether the seller or the buyer pays it, and the local name does not matter: if it is computed that way, the federal forms show it as a transfer tax. The Loan Estimate shows only the part you pay; the seller's part appears on the Closing Disclosure.
An example
In section E of her Loan Estimate, Irma sees a “Transfer Taxes” line. She asks the lender why she pays it and not the seller, and learns that her state's law says so.
You will see it in…
- The Loan Estimate, section E (“Transfer Taxes”)
- The Closing Disclosure, section E, in the buyer and seller columns
- Your state's or county's tax pages
