Many people in Delaware who are preparing to purchase a home may wonder why they need to bother with purchasing title insurance. People may especially think this small purchase is unnecessary when they are buying a home that has been owned by a single owner for many years. However, failing to purchase this insurance can be a big mistake.
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:
The National Association of Realtors is reporting a slight slowdown in home sales took place nationwide in August. However, the group, which represents real estate agents in Delaware and across the country, believes that the picture is a mixed bag, and actually positive when it comes to first-time homebuyers.
When selling a house in Delaware, the law requires you to disclose certain things about the property to the buyer. Examples include whether there is radon in the home, and whether the property has any “material defects.” This is meant to prevent fraud in the real estate market.