A transfer tax is a local tax charged for transferring ownership of the property into the new owner's name. Some areas call it a city tax, and it is one of the more confusing lines at closing. The exact rate varies by city and county, so two otherwise identical purchases in different areas can show different amounts on the closing statement. Property taxes are a separate item, and they get prorated at closing based on where you land in the tax year, so you are only responsible for the share of the period you actually own the home. The proration trips people up because the tax year often is not the calendar year. In Southern California, for example, the property tax fiscal year runs July 1 through June 30, which surprises people expecting a January start. Your loan officer or escrow officer can walk you line by line through which taxes apply to your specific purchase and how the proration on your Loan Estimate was calculated. Asking for that walkthrough is completely reasonable; those pages exist to be explained.