It's included in the listing agreement, as well as any offer that turns into a contract, yet many out of State sellers seem to forget that the Title Company is going to withhold 7% of the proceeds of your sale for the Maryland Withholding Tax.
Effective beginning back in 2003, the State of Maryland requires Title Companies to withhold 7% from the sale of a house from individuals, 8.5% from entities, in the event that the Out of State owner may owe a tax to Maryland. In order to get that money back, the non-resident has to file a tax return, or have a previously agreed to exemption from the State Comptroller.
The payment is calculated based on the sales price, minus any payoffs and settlement expenses.
This isn't an additional tax on Out of State homeowners, however, the money is withheld and sent to the State, until you prove that you don't owe them any money.
Richard Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).
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