Short answer
Often yes. Delaware's realty transfer tax law lists exempt conveyances between spouses, between divorced persons after a decree, between parent and child, between siblings, half siblings and step siblings, and between grandparent and grandchild. A sale on the open market to a stranger is not in that group.
What the statute lists
Title 30, section 5401 of the Delaware Code lists conveyances that the realty transfer tax does not reach. In the family category it names transfers between spouses, between divorced persons after the divorce, between a parent and a child or the child's spouse, between siblings, half siblings or step siblings, and between a grandparent and a grandchild or the grandchild's spouse. The wording is specific, so aunts, uncles, cousins and friends are not on that list.
Who pays when it is not exempt
When a transfer is taxable, section 5402 says the tax is apportioned equally between the grantor and the grantee. Section 5412 adds that the burden of paying falls on the grantor unless the parties agree otherwise. In a normal sale, that means the contract should say who pays what. A family deal that falls outside the exemption can still be taxed, so read the exemption list against the actual relationship.
Recording needs proof
Section 5408 says no document on which the tax is imposed can be recorded unless proof of payment of the realty transfer tax appears on it. That is why a closing agent will ask whether you claim an exemption and under which clause. Ask the attorney or settlement agent to confirm the exemption before the deed is signed, since a mistake can delay recording.
Other things to check
An exempt transfer is not the same as a tax-free event for everyone. Income tax, gift tax and estate matters are separate, and a mortgage may have a due-on-transfer clause. Talk to a Delaware real estate attorney and a tax professional. This page is general information and not legal advice.
Selling for cash instead
If the relative is not on the statute's list, a cash sale to an outside buyer is a simpler comparison. A cash sale to Kaizen Home Buyers skips the repair list and the agent commission. The purchase is as-is. We can give you an offer within 24 hours and close in 14 to 30 days, or later if you need time. Our phone is 267-329-0084.