land transfer tax

noun (plural: land transfer taxes)

A tax paid by the Buyer to the government on the closing date.

The land transfer tax is determined as a percentage of the sale price of a property. The percentage (not just the amount) is higher for higher-priced properties.

Some of money collected from the land transfer tax pays for the administration of the land registry office.

Toronto adds its own municipal land transfer tax, so Buyers in Toronto must pay twice.

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