MARYLAND NON-RESIDENT SELLER WITHHOLDING TAX, REAL ESTATE

CHANGES TO THE MARYLAND NON-RESIDENT SELLER WITHHOLDING TAX, REAL ESTATE
Please note upcoming changes to the Maryland Non-Resident Seller Withholding Tax and the Prince George's County Recordation Tax rates for 2008
Maryland Tax Rate Changes
The Maryland Non-Resident Withholding Tax Rate will increase from 6.75% to 7.5% for individuals. The new rate is effective with settlements taking place on or after July 1st. (The 8.25% rate for entities remains unchanged.)
Additionally, the Prince George's County Recordation Tax will increase from $4.40 per $1,000 of sales price to $5.00 per $1,000 effective with settlements taking place on or after July 5th. 2008
Information provided by Robert B. McArtor, REALTOR® with Long and Foster Real Estate, Inc. and a Licensed Real Estate Auctioneer owner of Advantage Real Estate Auction Sales, Inc. in Maryland serving all counties including Harford, Baltimore and Cecil County, City. If you are relocating to Maryland contact us today! 410-879-0622.

Advice to the Buyer of Property at Auction

Advice to the Buyer of Property at Auction

In a sale by offer and acceptance, you can write special conditions into your offer to protect
yourself. These special conditions may include repairs to the property, building inspections or
termite inspections. However, in an auction you do not have this option. As a result, purchasing
at an auction can be riskier than purchasing through sale by offer and acceptance. Preparation is essential If you have decided you wish to bid at an auction, it is recommended that you have finalized finance arrangements and have developed a good understanding of what the property is worth. As auctions are generally cash sales, you will need to arrange all finance beforehand.You will also need the amount of the deposit price as this is paid at the close of the auction. The primary duty of the real estate agent and the auctioneer is to look after the seller’s interests. It is therefore wise to ask the real estate agent as many questions as possible about the property, inspect the property carefully, and do your own checks on the property through the local council and other relevant authorities. The Real Estate and Settlement Advisory Board’s (REBA) publication Buying a home through an agent can provide further guidance on the types of checks you can do on a property before buying. Before bidding at an auction, it is wise to have formed your own view about the value of the property. You will not be able to rely on the actions of other bidders to give you an idea of the property’s value because some people may be bidding for the seller. The seller may make their own bids up to the reserve price. The seller’s real estate agent, the auctioneer or other people may also make bids on behalf of the seller up to the reserve price. This is common in all types of auctions. It is recommended that you check if the seller intends to bid by reading the Auction Particulars and Conditions of Sale of Freehold Property contract prior to the auction. If you become the successful bidder, you will need to immediately nominate a settlement agent or lawyer to transfer the land title and conduct settlement for you. It is therefore best to decide on your settlement agent before the auction. Bear in mind that a settlement agent who is unconnected to the seller or the seller’s real estate agent is preferable because they are less likely to experience a conflict of interest when representing you.