How is the purchase price on a real estate transaction determined?
The information found in the real estate transactions that you read in the newspaper or online is generated from the deed document. The purchase price is calculated strictly from the deed document and the transfer fee, not from the purchase price recorded by agents. The fee is generally a set amount per $1,000 transferred and varies by community. The transfer fee on the deed generally reflects the accurate purchase price of the property. There are many exemptions and conditions that may increase or reduce the fee charged when the document is recorded. For example, if someone executes a quitclaim deed or trust, the fee for that transaction could be less than the fee for a normal transaction.
