Connecticut eliminates conveyance taxes on short sales and deeds in lieu
Minna Reid, just posted a blog with some information that I don't think that most of us here in Connecticut are aware of, so I thought that I would re-blog this to help get the word out. This is information that is starting to affect more and more houses here in Connecticut and should be very useful.
CT CONVEYANCE TAX CHANGES
In the 2010 June Special Session, the Connecticut Legislature added two new exemptions to the Real Estate Conveyance Tax - one for deeds in lieu and one for short sales. Note that these only apply to conveyances of the principal residence of the transferor. The Legislature also reinstated the exemption for foreclosures by sale.
These changes are effective October 1, 2010.
2010 Conn. Pub. Acts 1, Section 2 (June Spec. Sess.) added exemptions for the following conveyances:
1."Deeds in lieu of foreclosure that transfer the transferor's principal residence" (12-498(19)); and
2."Any instrument transferring a transferor's principal residence where the gross purchase price is insufficient to pay the sum of (A) mortgages encumbering the property transferred, and (B) any real property taxes and municipal utility or other charges for which the municipality may place a lien on the property and which have priority over the mortgages encumbering the property transferred." (12-498(20)).
Subsection 9 of 12-498 was also amended by the Act to reinstate the exemption for conveyances made pursuant to a decree under Section 49-24, which is the foreclosure by sale section.
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Minna Reid is a full-time, full-service, Connecticut REALTOR®, specializing in short sales, serving central and eastern CT including, but not limited to; Andover, Ashford, Bolton, Chaplin, Columbia, Coventry, East Hartford, Eastford, East Windsor, Ellington, Enfield, Glastonbury, Hebron, Lebanon, Manchester, Mansfield, Marlborough, Somers, South Windsor, Stafford, Tolland, Union, Vernon, Willington and Windham.
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