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Is this true:? - Fannie Mae is exempt from paying the customary Sellers Taxes on Deed Transfer.

We received the contract for our house. It's from Fannie Mae and now they want us to pay  customary Sellers Taxes on Deed Transfer. Is this right?

Thanks for the answers!
  • December 13 2011 - US
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Answers (4)

Each state has in its statutes what to do in the case of an exempt seller. In some states where the seller pays it by statute, then the tax is simply not collected.

In Michigan the transfer tax is by statute, paid by the seller. Furthermore Michigan statute MCLA 207.526(6) (c) then says it exempts tax collection on a written instrument that this state (MI) is prohibited from taxing under the United States constitution or federal statues.

You should call your closing attorney or the county clerk for clarification but my read on it is that you don't have to pay it.
  • December 15 2011
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Do you know if the buyer has to pay in Michigan?

Thank you!
  • December 14 2011
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In some states, they can push that responsibility to the Buyer.
  • December 14 2011
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This has not been the case in my Fannie cases. In MA, the excise taxes (deed stamps) must be paid by the seller.

Best,
Mike
  • December 13 2011
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