Chicago Title NCS Chicago: SYFCREC 2021

Surviving Your First Commercial Real Estate Closing I National Transactions State, County, Municipal o Your NCS Chicago Sales team uses an online calculator to calculate the tax, based on consideration. Your underwriting team can provide you with the necessary forms, or a website where the form can be completed online. However, our policy does not insure transfer tax. o Certain exemptions may apply to certain transfers (i.e. between related entities), but at least one state (TN) imposes the tax on the greater of either the consideration or the assessed value – so it is hard to avoid! Some states (IL included) are now taxing “off record” transfers, such as transfers of an LLC or Partnership interest. o NOTE: In at least one state (NY, outside of the five boroughs), seller and buyer need to sign certain forms on the same page (i.e. counterparts are not okay). Be sure to coordinate this in advance of closing. Transfer Taxes 9 Surviving Your First Commercial Real Estate Closing I National Transactions o Likewise, some states impose a mortgage tax, based on the amount secured by the Security Instrument. Again, it is always best to consult with local counsel as to jurisdictional-specific requirements. Some states, like FL, require a legend on the face of the mortgage that sets forth the method used to calculate the tax. In the case of a multisite, multistate transaction, an affidavit is required in some states (e.g. TN and OK). o In some states (e.g. NY and FL), it is common to assign an existing mortgage to save on mortgage tax. o Be sure to consult with your national underwriter and/or our handy Real Estate Laws & Customs e-book (ChicagoNCS .ctic.com/resources ) to confirm current status of transfer and mortgage tax. Just a few years ago, Kansas did away with its mortgage tax. Mortgage Taxes 10 9 10 198