Bulletin: MU2013004

Date:
July 01, 2013
To:
All Maryland and the District of Columbia Issuing Offices
RE:
UNDERWRITING - Rule Change on Taxation of Indemnity Deeds of Trust - Effective July 1

Dear Associates:

Legislation amending the recordation tax for recording IDOTs and Refinance Deeds of Trust is effective for all instruments recorded on or after July 1, 2013. The threshold for taxability of IDOTs increases from $1 million to $3 million. The tax effect of recoding supplements to existing IDOTs has also been clarified and allocation of tax between counties when an IDOT secures property in multiple counties is addressed.

The refinance exemption has been expanded from residential to cover both residential and commercial refinances. As a result, a refinance affidavit must now be presented for all refinances recorded on or after July 1, 2013.

Please see the attached memo from Stuart Cordish of the Office of the Attorney General to All Clerks of Circuit Court and All Land Records Departments for details, and for his guidance to the Clerks.

As implementation of these changes takes effect at the County level we advise all Maryland and DC agents to confirm recordation tax requirements for IDOTs and non-residential refinances to ensure that the proper tax is submitted when documents are presented for recording.

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