Bulletin: VA2012001

Date:
May 24, 2012
To:
All Virginia Issuing Offices
RE:
Changes to Recordation Tax and Recording Requirements

Dear Associates:

The Virginia legislature recently enacted several statutes which will impact recording procedures in Virginia.  Effective July 1, 2012, the following changes apply: 

Recordation Tax on Refinances (Va. Code Sec. 58.1-803)

The exemption from Recordation Tax for refinances with the same lender has been eliminated.  Effective July 1, 2012, all refinance deeds of trust will now be subject to Recordation Tax but at a new lower schedule which commences at the rate of 18 cents on every $100 (or portion thereof) up to $10,000,000.  As with the standard Recordation Tax, the rate diminishes at $10,000,000 intervals by 2 cents per interval with the final interval being 10 cents per $100 for all loan amounts greater than $40,000,000.

In order to claim the exemption, tax must have been paid on the deed of trust being refinanced and the new deed of trust must certify the deed book and page number of the recorded instrument on which the tax for the original debt was paid.

Please keep this in mind when quoting charges and fees for new transactions.  If there is a possibility that the transaction will record after June 30, 2012, this new tax should be included.

Finally, modifications with the same lender will continue to only be taxed based upon the amount of new consideration.

Preparation of Deeds (Va. Code Sec. 17.1-223)

Each clerk of the circuit court now has the authority to reject any deed for filing or recordation (except for deeds in which a public service company, railroad, or cable system operator is either a grantor or grantee) unless the deed states on the first page of the document that it was prepared by the owner of the real property or by an attorney licensed to practice law in the Commonwealth. If prepared by an attorney, the statement shall include the name and Virginia State Bar number of the attorney who prepared the deed.

Consideration on Deed (Va. Code Sec. 58.1-802)

This statute now requires that a deed or other document regarding conveyance of real property state on its first page the actual consideration for the conveyance before it can be admitted to record.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None