HUD representatives recently indicated how real estate transfer taxes should be disclosed on the new GFE and their answer caught some lenders and settlement services providers by surprise.
In those jurisdictions, where seller by custom and practice or by contract, pays a portion or all of the transfer taxes, those taxes need to be disclosed in Box 8 of the new GFE and then place that amount in the buyer's column on line 1203 of the HUD-1, with an appropriate credit on line 204 to the buyer (to reflect the portion paid by the seller) and a debit on line 504 against the seller for that amount.
Good news is, Nebraska is not one of these jurisdictions. In Nebraska, the obligation to pay transfer taxes is placed on the seller by state statute, specifically Section 76-901.
HUD says you DO NOT need to disclose the transfer taxes on the GFE in those states where it is seller's statutory obligation to pay transfer taxes.
Bottom line, in Nebraska the lender need not disclose transfer taxes on the GFE. If you are in any other state, you need to determine how your state treats payment of transfer taxes.
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