Did you know that the Town of Frisco has exemptions from the 1% real estate transfer fee for locals? While the qualifications are somewhat stringent, if you are working with a local client who meets the criteria, this can be a helpful savings at closing.
In order to qualify for the exemption, the candidate(s) must meet the following criteria:
1. A Frisco resident or worked in Frisco for the past 12 months.
2. Must work a minimum of 30 hours a week.
3. Assets cannot exceed $10,000 (does not include clothing, furnishings, autos, or retirement accounts).
4. Cannot hold title to any other residential property, nor can anyone else in the household.
5. Purchaser’s household cannot earn more than 120% of the median income in Summit County.
6. Homebuyer must apply for the exemption and supply all documentation for the purpose of qualification at least 15 business days prior to closing.
To get an idea of Median income amounts, a two person household earning $95,560 would qualify for 120% of Median. A two person household earning $90,900 would qualify for 100% of Median. A two person household earning $70,400 would qualify for 80% of Median. Depending on the applicant’s income, an amount of the purchase price will not be subject to the 1% real estate transfer tax. The exemption amounts are as follows:
Household Income Relative to Summit County Median
Less than 80% of Median
$200,000 of purchase price
80-100% of Median
$175,000 of purchase price
100-120% of Median
$100,000 of purchase price
So a couple with a household income of $85,000 (in the 100-120% of Median), purchasing a $300,000 home would only pay the transfer tax on $200,000. Therefore, they would pay $2,000, rather than $3,000, saving $1,000.
Keep this in the back of your head (I’m sure already filled with important information), for the next time you are working with a local buyer buying in Frisco.