Buying or selling in Bedford and trying to decode New Hampshire’s transfer tax and closing costs? You are not alone. These line items can feel opaque in the final days before you sign, and surprises are not something you want at the closing table. In this guide, you will learn how the NH real estate transfer tax works, who typically pays what in Bedford, what to expect on your Closing Disclosure, and how to prepare with simple checklists. Let’s dive in.
NH real estate transfer tax basics
The New Hampshire real estate transfer tax is a state tax that applies when real property changes hands. It is typically paid when the deed is recorded with the county’s Registry of Deeds. A transfer-tax return accompanies the deed, and the registry will not record without the required documentation.
Payment is negotiable in your purchase and sale agreement. In many markets the seller pays by custom, but it can be split or assigned to either party. In Bedford, practice can vary by deal, so make sure your contract clearly states who covers the tax.
If you want the official rules, the New Hampshire Department of Revenue Administration is the authority for rates, forms, exemptions, and filing instructions. You can verify current guidance through the NH Department of Revenue Administration.
How the tax is calculated
The tax is applied to the consideration for the transfer, which is usually the sale price or market value for certain non–arm’s-length transfers. Use this simple formula to estimate:
- Transfer tax = Sale Price × Transfer Tax Rate (R)
- Example: If the rate is R and your sale price is X, the tax is X × R
Always verify R directly with the NH Department of Revenue Administration before you rely on any estimate.
Exemptions you might see
Some transfers can be exempt or treated differently, including transfers to a spouse, certain transfers on death, qualifying transfers to government entities, and some nonprofit transactions. To claim an exemption, you usually need to attach an affidavit or other documentation to the transfer-tax return that cites the specific statutory basis. Confirm the documentation requirements with the NH Department of Revenue Administration before closing.
Filing, timing, and penalties
The deed, transfer-tax return, and payment are delivered to the Hillsborough County Registry of Deeds for recording at closing. If payment or required forms are missing, recording can be delayed. Late filings can trigger penalties or interest. Avoid last-minute issues by confirming who will prepare and submit the transfer-tax return and how payment will be made.
Typical closing costs in Bedford
Closing costs vary by property, loan type, and negotiation. Many fees are customary, not mandatory, and your contract can shift who pays them. Here is what you will usually see.
Seller costs
- Real estate commissions as agreed in your listing contract.
- NH real estate transfer tax if the contract assigns it to the seller.
- Title-related items such as an owner’s title insurance policy where local custom calls for the seller to provide it. Practices vary, so confirm early.
- Payoffs for existing mortgages, home equity lines, judgments, or liens.
- Repairs or credits negotiated after inspections.
- Prorations for property taxes based on the closing date.
- Recording fees for the deed or release of mortgage if assigned to the seller by contract.
- Any required municipal certifications or inspections if applicable to your property.
Buyer costs
- Lender fees such as origination, underwriting, and processing when financing.
- Appraisal ordered by the lender.
- Third-party loan items like credit report and flood certification.
- Title search, settlement fee, and lender’s title insurance policy, which is commonly required by lenders.
- Recording fees for the mortgage and possibly the deed if assigned to the buyer by contract.
- First-year homeowners insurance premium or binder.
- Prepaid items and escrow deposits for property taxes and insurance, plus prepaid interest from funding date to the first payment date.
- HOA transfer fees and prepaid dues when applicable.
- Inspections such as general home, pest, well, septic, and any survey your lender or you request.
- Optional owner’s title insurance policy if you choose to purchase it.
If you are financing, your Closing Disclosure will itemize buyer-side costs in a standard format. For an overview of what appears on that form, review consumer resources from the Consumer Financial Protection Bureau.
Recording and local logistics in Bedford
Bedford is in Hillsborough County. Deeds, mortgages, and releases are recorded with the Hillsborough County Registry of Deeds. The registry publishes recording requirements, fees, and office details, and may support electronic submission through approved vendors. You can check current procedures at the New Hampshire county registries of deeds portal.
Recording fees can include a base amount plus page-based charges and specific fees for releases or discharges. These figures change, so confirm the latest fee schedule with the registry before closing.
The registry and your closing attorney or title company will handle the transfer-tax return and deed recording. If you need public records or prior deeds during your title search, your settlement agent retrieves those from the registry as part of the process.
Property tax proration in Bedford
Property taxes are prorated between buyer and seller based on the closing date and the town’s tax schedule. At closing, you will see a credit or debit that reflects who benefits from prepaid or outstanding taxes for the period each party owns the home. To review Bedford’s tax billing cycle or contact the tax collector, start with the Town of Bedford website.
Title insurance in New Hampshire
Your lender will almost always require a lender’s title insurance policy, which buyers typically pay. An owner’s title policy is optional but provides protection to the homeowner. In some New Hampshire transactions, sellers provide the owner’s policy as a convenience, while other deals allocate it to the buyer. Confirm local practice with your title company early so it is reflected in your contract and your net sheet.
Quick checklists
Seller pre-closing checklist
- Confirm in your contract who pays the NH transfer tax and recording fees.
- Request written mortgage payoff statements, including daily interest.
- Order title work and any needed municipal certificates or septic/well paperwork.
- Complete any agreed repairs or arrange a credit or escrow if needed.
- Coordinate with your closing attorney on transfer-tax return preparation, deed execution, and recording logistics.
Buyer pre-closing checklist
- Review your Closing Disclosure at least three business days before closing.
- Confirm lender-required funds to close and initial escrow deposits.
- Obtain a homeowners insurance binder and share it with your lender.
- Decide whether to purchase an owner’s title insurance policy and who will pay for it.
- Verify wire instructions by phone using a known number to avoid fraud.
- Confirm how you will deliver funds for closing and any bank cutoff times.
Example cost allocation scenarios
- Scenario A: Seller pays real estate commissions, the NH transfer tax per the contract, and any negotiated repair credits. Seller receives a credit for prepaid taxes after prorations and pays off the existing mortgage.
- Scenario B: Buyer pays lender fees, appraisal, lender’s title policy, initial tax and insurance escrows, and recording fees assigned to the buyer. Buyer receives a prorated credit for taxes that cover the period after closing.
Your final Closing Disclosure and settlement statement control, so make sure any negotiated changes are updated in writing before closing.
Tips to avoid last-minute surprises
- Verify the current NH transfer-tax rate with the NH Department of Revenue Administration before you sign or finalize estimates.
- Check Hillsborough County Registry of Deeds recording requirements and fees a week before closing.
- Ask your lender or closing attorney for a line-item estimate early, then update it after the appraisal and title report.
- Confirm any HOA transfer or move-in fees well in advance.
- If your transfer may qualify for an exemption, consult a New Hampshire real estate attorney or your title company and gather required affidavits early.
Local resources
- NH Department of Revenue Administration for transfer-tax law, forms, and FAQs: New Hampshire Department of Revenue Administration
- Hillsborough County recording, e-recording options, and fees: New Hampshire county registries of deeds portal
- Bedford tax billing cycle and town contacts: Town of Bedford
- Closing Disclosure overview for financed buyers: Consumer Financial Protection Bureau
- Market customs and negotiation guidance: New Hampshire Association of REALTORS
Plan your Bedford closing with confidence
When you understand how the NH transfer tax works and which closing costs typically fall to each side, you can negotiate clearly and avoid stress. Get your estimates in writing, verify the current rate and recording fees, and keep communication tight with your lender, attorney, and title company.
If you want a clear, no-surprises path to the closing table in Bedford, connect with a local team that handles these details every day. Reach out to Christensen Group for a tailored line-item estimate and strategy for your sale or purchase.
FAQs
Who pays the NH transfer tax in a Bedford home sale?
- Responsibility is negotiable. Many New Hampshire deals have the seller pay by custom, but your purchase and sale agreement controls. Confirm the allocation in writing.
How do I calculate the NH transfer tax for my Bedford property?
- Multiply the sale price by the current state rate R: Transfer tax = Sale Price × R. Verify R with the New Hampshire Department of Revenue Administration before relying on any estimate.
Are there transfer-tax exemptions for family transfers in New Hampshire?
- Some transfers to a spouse, certain transfers on death, qualifying transfers to government entities, and some nonprofit transactions may be exempt. Documentation is required at recording.
Does Bedford charge a separate municipal transfer tax beyond the state tax?
- Most New Hampshire towns do not impose a separate transfer tax. Local administrative fees or certifications may apply. Confirm with the Town of Bedford before closing.
What buyer closing costs should I expect with a mortgage in Bedford?
- Expect lender fees, appraisal, title and settlement charges, lender’s title policy, recording fees if assigned to you, homeowners insurance, and prepaid taxes and insurance for your escrow account.
Where do I record my deed for a Bedford property?
- Record at the Hillsborough County Registry of Deeds. Check current hours, fees, and any e-recording options before closing through the state’s registries portal.
