Transfer taxes can be the quiet line item that shifts your cash to close, your ROI, and even your negotiation strategy. If you are buying in Cresco, Barrett Township, or anywhere in Monroe County, getting this right early will keep your deal clean and predictable.
Why transfer taxes matter in Cresco deals
How transfer taxes shape your bottom line
Transfer taxes hit on day one, at recording. In Monroe County, most residential deals are taxed at a combined 2 percent of the sale price, split between the Commonwealth of Pennsylvania at 1 percent and a typical local 1 percent that is shared by the municipality and school district. The county collects it when your deed records, which means you need the funds ready at closing according to Pennsylvania’s Department of Revenue and the Monroe County Recorder of Deeds. For investors and second‑home buyers, that affects your cash planning and your return timeline.
Deal certainty and negotiation clarity
Because the tax is due at recording, any shortfall can delay your deed. Pennsylvania makes both parties jointly and severally liable, so you want clear contract language on who pays and evidence on your closing statement that it was handled per state guidance on liability and payment.
What this guide covers
You will see the Cresco basics at a glance, who pays and when, how transfer tax appears on your closing documents, how it affects financing and ROI, what exemptions to discuss with your pros, and a simple plan to avoid surprises.
Transfer tax basics for Cresco buyers
What transfer tax covers at closing
- The tax applies to the consideration paid for real property. In a standard arms‑length sale, that means the purchase price shown on the deed. If the price is not listed or is nominal, the state uses a Statement of Value and other valuation rules to determine tax due as explained by the Department of Revenue.
- In Monroe County, the Recorder of Deeds collects both the state and local portions when the deed is recorded. The county’s fee bill shows 1 percent state plus 1 percent local as the norm, for a total of 2 percent on most residential deals per the Recorder’s published schedule.
How it differs from other costs
- Transfer tax is not your annual property tax. It is a one‑time tax tied to the change in ownership.
- It is separate from lender charges like points, underwriting, or appraisal fees.
- It is also separate from recording fees. The Recorder will charge document recording fees and various program surcharges in addition to transfer tax as listed on the county fee bill.
Where it appears in documents
- On the Closing Disclosure or ALTA Settlement Statement, you will see transfer taxes itemized, often split into state and local lines.
- If your deed does not show full consideration, the closing package typically includes Pennsylvania’s Statement of Value (REV‑183). That form is used to report consideration or claim an exemption, and it supports how tax was calculated per the state’s rules.
Who pays and how it is structured locally
Typical buyer–seller splits and negotiations
- Pennsylvania law makes both parties liable, but payment is a contract issue. In many Monroe County deals, buyer and seller split the tax, or one side covers it in exchange for a certain price. What matters is that your contract specifies the allocation and your final statement shows it paid per state guidance.
- In more competitive offers, some buyers agree to pay the full transfer tax to strengthen terms. That can make sense if the price or other credits still deliver your target ROI.
Allocations with concessions or credits
- Seller credits, repairs, or price adjustments change the net outcome. A higher price with a larger credit may increase total transfer tax while still keeping your net cash tight. Model both price and closing credits so you do not accidentally raise the tax burden without a payoff.
Timing, escrow, and recording logistics
- The tax is due when the deed is presented for recording. Practically, it is collected at closing so the title company can record right away. The Recorder will not record a deed unless taxes and fees are paid, or a valid exemption applies per Monroe County recording procedures.
Impact on financing and investment returns
Cash‑to‑close and loan disclosures
- Transfer taxes increase your cash to close and show up on lender estimates and your final Closing Disclosure. On a $400,000 purchase in Cresco, plan for about $8,000 in transfer tax at a 2 percent combined rate, plus recording fees and standard closing costs. The county’s fee schedule lists the additional per‑document costs you should expect beyond the tax itself see the Recorder’s fee bill.
Modeling ROI for STR or second homes
- Treat transfer tax as part of your acquisition basis in your underwriting model. It affects your payback period and cash‑on‑cash. If you are targeting a certain yield, compare properties net of this cost so you are looking at apples to apples.
- For short‑term rentals, include transfer tax in your startup cash line next to furniture, setup, and reserves. That gives a true view of time to break even.
Treatment in basis and resale planning
- Many buyers consider transfer tax part of their overall acquisition costs for long‑term planning. Discuss with your CPA how it fits into basis and how it may interact with your future exit or improvements.
Exemptions and special situations to discuss early
New builds, family transfers, and entities
- Family transfers and certain government or nonprofit transactions can be exempt, but they require documentation and usually a Statement of Value. Do not assume an exemption without the right paperwork per the Commonwealth’s exemption guidance.
- New construction can be more complex. If a land sale and a construction contract are tied together and the seller and builder are affiliated, the value of the construction can be subject to transfer tax. This can increase taxes owed at closing for new builds. Confirm with your builder and title team how tax will be calculated if there is any affiliation per the state’s new home construction rules.
1031 exchanges and cross‑state buyers
- Exchange timelines and paperwork do not remove Pennsylvania’s transfer tax. Coordinate with your qualified intermediary and title team so the deed, consideration, and transfer‑tax payment are aligned.
Community or HOA transfer fees
- Some associations or resort communities charge their own transfer or capital contribution fees. These are not government transfer taxes but they affect cash to close. Ask the listing agent or HOA for the current fee schedule and whether amounts are flat or percentage‑based.
Buyer strategies to avoid surprises at closing
Questions to ask agent and lender
- What combined transfer‑tax rate are we using for this property, and who will pay it per the offer?
- How is the tax shown on the Loan Estimate and the Closing Disclosure?
- Are there any HOA or community transfer fees we should add to the pro forma?
Due diligence before writing an offer
- Confirm your working rate. Monroe County’s norm is 2 percent total, shown as 1 percent state and 1 percent local on the Recorder’s fee materials per the county fee bill.
- Decide the allocation in your offer so there is no ambiguity. If you ask for repairs or credits later, re‑run the math to make sure you did not raise transfer tax without intent.
- If the deed will not show full consideration or you believe an exemption applies, ensure the Statement of Value is prepared and supported with documents before closing per state requirements.
Remote closing steps for out‑of‑state buyers
- Confirm acceptable payment methods and check routing for taxes and fees with the Recorder and your title company. Monroe County outlines acceptable methods and recording rules in its fee bill and site guides see Recorder information.
- Build a checklist for remote notarization, courier returns, and funding deadlines so the deed can record promptly.
- Keep copies of the paid transfer‑tax receipts or stamps and the recorded deed once available.
Plan Cresco closing costs with local pros
A clear plan keeps your deal smooth and your ROI on track. Our team models transfer taxes in your underwriting, aligns offer terms with your cash goals, and coordinates title, lender, and HOA details so recording is seamless. If Cresco or Barrett Township is on your shortlist, let’s run the numbers and map options to your strategy.
Schedule a free investment review and revenue estimate with Live Free Listings. We will build your cash‑to‑close plan, confirm local transfer‑tax assumptions, and tailor offers that protect your upside.
FAQs
What is the transfer tax rate in Cresco?
- Most Cresco and Barrett Township sales in Monroe County pay a combined 2 percent: 1 percent to Pennsylvania and 1 percent locally, collected at recording per the county fee bill and state guidance.
Who pays the transfer tax in Pennsylvania?
- The state makes buyer and seller jointly and severally liable. In practice, the contract decides the split. Confirm the allocation on your closing statement per the Department of Revenue.
When is transfer tax due?
- At recording. It is typically collected at closing so the title company can record your deed immediately. The Recorder will not record without required taxes and fees paid or a valid exemption per Monroe County’s procedures.
What if my deed shows a nominal price?
- Pennsylvania requires a Statement of Value when consideration is nominal or not listed. The state or county can reassess tax due based on market value if documents are incomplete per the Department of Revenue and Recorder FAQs.
Are new construction purchases taxed differently?
- If the seller and builder are affiliated and the construction contract is tied to the land transfer, the construction value can be taxed. Confirm treatment with your builder and title team per state new construction rules.
Where can I verify local recording fees and payment methods?
- The Monroe County Recorder of Deeds publishes its fee bill and recording rules, including acceptable payment methods see the county’s fee bill and Recorder site.
Is Cresco part of Barrett Township?
- Yes. Cresco is an unincorporated community in Barrett Township, Monroe County, Pennsylvania. That context helps you identify the correct local tax district and documents see an overview of Cresco.
