In a real estate transaction, when is a seller required to disclose the existence of transfer taxes?

In a real estate transaction, a seller is required to disclose the existence of transfer taxes during the negotiation process. This is crucial as transfer taxes represent a cost associated with the sale of the property and can affect the buyer's overall financial considerations. By informing the buyer of these taxes early on, the seller allows for transparency in the negotiation, enabling both parties to account for all potential expenses related to the transaction.

Disclosures during negotiation help establish trust and clarity, which are fundamental in real estate dealings. When buyers are made aware of such costs from the beginning, they can adjust their offers or make informed decisions, ensuring that there are no surprises at the closing table. This cooperative approach aligns with best practices in real estate transactions, which emphasize full disclosure and communicative transparency to facilitate smoother dealings between parties.

While it may seem convenient for a seller to wait until the closing to bring up transfer taxes, doing so goes against the spirit of good faith in negotiations. The other options do not align with the established practices for disclosures in real estate transactions, as they either occur too late or imply a lack of requirement, which is not the case for significant financial aspects like transfer taxes.