As I advised previously Anne Arundel County, Maryland recently took the position that the difference between the sales price and the amount forgiven by a lender in a short sale transaction should be taxable as "consideration". This created a flurry of activity within the local title community and as a result the American Land Title Association and the Maryland Land Title Association requested clarity from the office of the Attorney General.
A very persuasive, but "non-binding" opinion has been offered which basically states that the counties cannot tax the forgiven debt amount at the time of recording. For a complete read of the opinion please link to: www.alta.org
The Maryland Land Title Association is working in conjuction with the Maryland Association of Realtors seeking legislation that will insure that all 24 Maryland jurisdictions abide by the opinion offered by the AG.
This is good news to Maryland buyers, sellers and lenders. With the new RESPA rules allowing ZERO TOLERANCES for transfer taxes and stamps many were wringing their hands over the ruling by Anne Arundel County. For those who have already had to pay out these additional funds, please see the link. There is information within the letter which tell you how to seek a refund.
Hoping that this information is helpful to all!!!
Sincerely
Charlene Perry
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