The Prince George's County Office of Finance has issued a notice increasing the State Recordation Tax Rate from $2.20 per $500 to $2.50 per $500 on documents executed after July 5th 2008. Documents executed prior to July 5th will be accepted at the previous rate of $2.20 per $500 until August 31st 2008.
Beginning on September 1st 2008 all documents will be taxed at the new rate of $2.50 per $500.
*Make sure you and any borrower debating on closing before or after their 4th of July vacation is aware of the cost difference.
Also, effective July 1st 2008 all documents claiming a principle residence exemption must have a copy of a valid driver's license submitted with document, as proof of residency.
*Make sure you and your title company have a copy of all borrowers drivers license prior to settlement to verify their address. If the address on the license does not match the property address, you borrower will not receive the principle residence exemption.
Treasury Management has attempted to implement this in the past but has been met with strong opposition. Let us hope they withdraw this proposal as they did last year. I will update you as to any other changes.