Posted by MelissaCT on 5/23/06 2:39pm
Msg #121760

How to explain conveyance tax form without helping

borrower to complete the form.

Last night, I had a signing with a PhD who couldn't figure out how to complete the CT conveyance tax form. Since I can't help a signer complete a document, I simply asked her to read it a couple times. She still didn't "get" how to complete it properly. I suggested we go back to the document later and proceeded with the signing. She understood everything else about her loan.

Now, to me, it's not a difficult form to understand. It simply asks how much conveyance tax is due or why no tax should be collected, such as property conveyed between spouses, no consideration paid, consideration paid was less than $2000, etc.

Does anyone have wording they use for this form without suggesting to the borrower what reason should be checked? Maybe I just had a brain fart, but I was really struggling to walk that fine line on this one. Mind you, it was 11pm, after working 9 hours FT, doing a 1st & 2nd combo before this signing...maybe the hour was just late...

I'd appreciate any suggestions. The form went with a QC deed which "transferred" the property from her previous name to her current name, so I knew the reason should be no tax due because no consideration was paid. It is not a notarized form and she did get teh right answer on her own after all.

Melissa

Reply by Kevin/Ct on 5/23/06 3:42pm
Msg #121768

Usually the closing attorneys take care of this. If the individual is acting without an attorney he can take it to the Town Clerk's office at the time of recording the Deed/Mortgage, and the Town Clerk/Tax Collector will help him with both the State and Town conveyance tax. The Town has a vested interest in making certain that the proper tax is paid, and therefore has no problem helping the individual to complete the form to compute the tax. It is not something that a notary should be involved with.

Reply by Bob_Chicago on 5/23/06 4:06pm
Msg #121770

This advice may not work. Bwr does not take docs.........

to be recorded, the title co takes care of this
If the doc does not require notarization (rarely do )and they can
not figure it out quickly , I usually suggest that they sign
it in blank and let the TC figure it out.
If it does require a notary, then you can "suggest" that they
take a look at "section 3d(4)" and see if they think that it might apply.
If a QCD, there will usually be not tax due anyway, and
the purpose of the form is to show that it is eximpt from tax.
If there was a tax due it would be on the HUD.
gotta run

Reply by Kevin/Ct on 5/24/06 4:52am
Msg #121883

Re: This advice may not work. Bwr does not take docs.........

If the title company is delegated to perform the recording, the same advice would be applicable. The tax is due at the time of recording. It does not matter who is doing the recording. The Town and state will expect payment of their respective taxes in the correct amounts, and the town clerk or tax collector depending on the town involved in the transaction will be very pleased to assist in the completion of the form.

Your analysis as to the tax exempt status of property conveyed by quit claim deed does not hold true in Connecticut. Quit claim deeds and warranty deeds relate to the marketability of title to property ...not its tax exempt status. When a party conveys property by quit claim deed, he conveys his interest in the property subject to whatever encumbrances are on the property. When he conveys by a warranty deed he warrants that the title to the property is free of encumbrances except those enumerated in the deed or recorded as a matter of public record. With respect to a quit claim deed the grantor very often makes no attempt to have these encumbrances released, and the buyer takes title subject to the encumbrances. In the case of a warranty deed the grantor usually pays the financial encumbrances. Encumbrances such as restrictions, covenants and easements often remain on the title. The conveyance tax form lists a number of statutory exemptions for the tax, and compliance with these exemptions makes the transaction tax free regardless of whether the property is conveyed by way of quit claim deed or warranty deed.

Reply by Bob_Chicago on 5/24/06 10:10am
Msg #121939

Kevin is correct , but the original post says,"This form...

went with a QC deed which "transferred" the property from her previous name to her current name, so I knew the reason should be no tax due..."
My answer was directed to these facts.

Reply by BobbiCT on 5/23/06 6:33pm
Msg #121793

Two Connecticut conveyance tax forms ...

Kevin gave a nice answer.

My question when I see these is, "Who is filing out the state conveyance tax form?" This form, which goes to the Dept. of Revenue Services, included the social security numbers and has a line for the ATTORNEY who prepared it to print their name, telephone number, and Connecticut juris number. I have NEVER seen this included in any package where an out-of-state title company has prepared a Quitclaim Deed rather than a Change of Name Certificate.

I often wonder who signs and what the Dept. of Revenue Services form looks like when the recorder gets to the Town Clerk's office. Obviously the borrower isn't filling it out. Wonder if the title company hired a Connecticut attorney to do it?

Reply by Howie35CT on 5/23/06 6:31pm
Msg #121791

I think I understand the topic, but why as the notary are we explaining anything? I know we have the knowledge, but recall that is why the handy dandy LO is one phonecall away. How are you guys doing this month, I can't stop my phone from ringing...

Reply by BrendaTx on 5/23/06 7:27pm
Msg #121804

Re: How to explain - Howie - now aren't you a cutie...

I looked at your website...never dreamed the animal landscape would have a burly service man attached to it.

Thank you, Howie, for making a choice to serve our country. Sometimes I forget to say my thanks for you guys at night, but you are truly a blessing which sustains my cozy little way of life and I love you for it.

I am glad you are home safe.

Reply by MelissaCT on 5/23/06 10:28pm
Msg #121851

Point taken, Howie. I usually will point to where in the document the purpose is stated or instructions for completion (let the bwr read & complete as requested), but this form isn't drawn as such. There aren't any instructions for completion, although in reading it, the bwr is stating that "there is no conveyance tax due because...[multiple choice reasons]"

Interesting point about who should be completing this form...