A deed is a document that transfers ownership of real estate from a seller to a buyer. In Virginia, a deed transfer is only valid if certain requirements are met.
A deed must contain the names of the seller and buyer, also called the grantor and grantee, as well as their addresses. The grantee's address will be the property being deeded if he will be living there. The purchase price, called consideration, must also be listed. Additionally, the deed must include a legal description of the property, including the city and county, beyond just the street address, usually with metes and bounds.
In order to transfer property, a seller must draft a deed. Both the buyer and seller must sign a deed in Virginia and the signatures must be notarized. The buyer is then responsible for recording his deed with the county clerk in the county where the property is located.
Real Estate Taxes
When a seller transfers his property by deed, he is required to pay transfer tax. In Virginia, the transfer tax is 0.1 percent, or $0.50 for every $500 of the purchase price. For a purchase price of $500,000, the transfer tax is $500.
A buyer is responsible for mortgage tax. If he obtained a mortgage, he must pay 0.25 percent or $0.25 per $100 in Virginia. For a mortgage amount of $200,000, the mortgage tax is $500.