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November 2014 Archives

The First Time Home Buyer

In Sussex County Delaware, the First Time Home Buyer is someone that has never owned a home anywhere else.  That qualifies the first time home buyer for a waiver of the Sussex County Transfer Tax which is one-half of the normal 3% of the purchase price of the house. This 3% is normally split between the seller and buyer in the real estate transaction. Half of the 3% (1.5%) goes to the State of Delaware and the other half (1.5%) goes to Sussex County. So, the Sussex County portion of 1.5% is waived for a first time homeowner and their seller. Therefore, the first time homebuyer pays only .75% to the State of Delaware and the seller gets an advantage to sell to a first time homebuyer and only pays .75% to the State of Delaware. Sussex County will collect nothing. Unfortunately, if the home is located in a town, this first time homebuyer transfer tax does not apply. The house must be in the unincorporated County or in the seven towns that have adopted this exemption. These towns are:

When is a land-use action subject to pre-application review?

Part of the due diligence for those involved in commercial or residential real estate development in Delaware can sometimes involve waiting to complete an application for a land use plan. The state of Delaware may require an applicant to arrange a pre-application review with local authorities prior to, or in conjunction with, submission of an application for rezoning or other plans to change land use.

Closing real estate deals requires experience

Delaware state law incorporates specific rules pertaining to how real property transactions may take place, and failing to follow them properly can jeopardize the validity of a deal. Factors like the nature of the property being sold, the type of compensation involved and other critical details can all impact the legality of agreements and the liability of the parties involved. At Tunnell & Raysor, P.A., we strive to help you gain a better understanding of such nuances and create a legally binding agreement that better fulfills your needs.