A Virginia home purchase can include taxes on both the deed and the mortgage document, and the names on the closing paperwork are easy to mix up. Here’s who customarily pays each charge—and how to check the actual figures before closing.
Key takeaways
- Buyers customarily pay recordation tax on the deed and deed of trust.
- Sellers customarily pay grantor tax and any applicable regional congestion relief fee.
- The purchase contract and local practice can change who pays.
- The Loan Estimate is preliminary; the Closing Disclosure shows the final transaction-specific charges.
What is Virginia recordation tax on a home purchase?
Virginia recordation tax is a tax imposed when covered real estate documents, such as a deed or deed of trust, are recorded. A Virginia recordation tax home purchase may involve charges on both the document transferring ownership and the document securing the mortgage.
How the tax applies to the deed and deed of trust
A deed transfers ownership of the property to the buyer. A deed of trust secures the mortgage loan against the property and is recorded in public land records. These are separate documents, so a purchase with a mortgage can have separate recording-related taxes or fees.
Virginia law addresses recordation taxes on deeds and deeds of trust under Va. Code §§ 58.1-801, 58.1-802, and 58.1-803. State rules and local additions can affect the total. The applicable charges depend on the locality and transaction, so a general Virginia transfer tax rate—or a statewide estimate—may not match your closing figures.
Who pays recordation tax and grantor tax at a Virginia closing?
Buyers customarily pay the recordation tax on the deed and deed of trust. Sellers customarily pay grantor tax and, where applicable, a regional congestion relief fee. The contract and settlement documents determine the allocation for a specific transaction.
Which charges are customarily paid by the buyer?
The buyer commonly pays the deed recordation tax and the tax or recording charges associated with the deed of trust. Local practice and any city or county add-ons can affect the amount. Two purchases with similar prices can have different totals if they are in different localities or have different financing.
Which charges are customarily paid by the seller?
Grantor tax is associated with recording a deed that transfers real estate ownership, and sellers customarily pay it in a Virginia home sale. Sellers also customarily pay a regional congestion relief fee when one applies.
These are customary allocations, not universal legal requirements that prevent buyers and sellers from agreeing otherwise. Check the purchase contract and settlement statement to see how the parties have allocated the charges.
If you’re planning a Virginia purchase, you can contact Verified Home with mortgage and closing-cost questions or to discuss getting pre-approved. Real-estate agents coordinating mortgage questions with buyers can also review resources for agents.
How do Virginia transfer taxes show up on the Closing Disclosure?
The Loan Estimate gives preliminary figures, while the Closing Disclosure shows the final, transaction-specific charges. Review the government-fee section and check both the charge description and who is listed as paying it.
Where to find deed and deed-of-trust recording charges
The charges may appear among taxes and other government fees on the Loan Estimate and Closing Disclosure. Labels and presentation can vary. The disclosure identifies the listed charge and payor, and may show the recipient as well.
Compare the Closing Disclosure with your purchase contract and the settlement agent’s figures. If a charge or allocation is unclear, ask the settlement agent to explain how it was calculated and where the contract assigns responsibility, and contact Verified Home with mortgage questions.
A Virginia recordation tax calculator or Virginia transfer and recordation tax calculator can provide a useful estimate, but only if it reflects current rules, the correct locality, and the details of your transaction. A generic calculator may not include local add-ons or reflect your contract’s allocation. Your Loan Estimate and final Closing Disclosure are the documents to use for the actual figures.
Can you get a Virginia recordation tax exemption?
Some transactions may qualify for an exemption or reduced charge, but ordinary home purchases do not automatically qualify. Eligibility depends on the transaction and applicable law.
What to verify before relying on an exemption
Ask the settlement agent or local recording office to confirm whether an exemption applies and what documentation is required. You can also contact Verified Home with mortgage questions. Do not assume an online estimate accounts for an exemption or reduction. Use your Loan Estimate for preliminary figures and your Closing Disclosure for the final charges.
Frequently asked questions
What is recordation tax in Virginia?
Virginia recordation tax is a tax imposed when covered real estate documents, such as a deed or deed of trust, are recorded. The deed transfers ownership, while the deed of trust secures the mortgage loan. Virginia’s rules include Va. Code §§ 58.1-801, 58.1-802, and 58.1-803.
Does the buyer or seller pay Virginia transfer tax on a home purchase?
Buyers customarily pay deed and deed-of-trust recordation taxes, while sellers customarily pay grantor tax and any applicable regional congestion relief fee. The contract and local practice can change the allocation. Check the settlement documents for the agreed arrangement.
Where can I find Virginia recordation tax on my Closing Disclosure?
Virginia recordation tax charges may appear in the government-fee section of your Closing Disclosure; check the charge descriptions and listed payor and recipient. The Loan Estimate provides preliminary figures, while the Closing Disclosure shows final charges for your transaction. If a figure or allocation is unclear, ask the settlement agent to walk through it and contact Verified Home with mortgage questions.
Virginia recordation tax home purchase costs depend on the documents, locality, and contract—not just a generic calculator. For help with mortgage questions or a pre-approval, contact Verified Home or start an application at apply.verifiedhomellc.com. Learn more about conventional mortgage options in Virginia.
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