Know Before You Close: Delaware

Like all other “attorney states,” an attorney’s supervision is required for each real estate transaction involving property situated in Delaware. This, of course, means each transaction will have its own attorney fee.

A World of Difference🔗

One of the country’s smallest states, Delaware is comprised of only 3 counties. A first-time homebuyer discount on the state transfer tax is one of the few statewide elements. Counties and towns may also offer additional discounts to first-time homebuyers on their own transfer taxes, although those discounts vary. In fact, the differences in closing fees from county to county here can be stark. For transfer taxes, the difference can be at the city or county (or both) level. For example, Delaware is home to many township-specific discounts and exemptions for the calculation of a transfer tax.

Delaware Deed Taxes🔗

Deed taxes in Delaware real estate transactions can be assessed at the state as well as the county level.

Transfer Taxes🔗

Finally, in Wilmington, the transfer tax rate is impacted by the parcel number of the property subject to the pending transaction. This determination answers the question of whether or not that property falls within the city proper, which affects the transfer tax calculation.

Wilmington or New Castle?🔗

Also, as of January 2022, transfer taxes falling within Wilmington should be made payable to New Castle County, rather than Wilmington.