Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-20 - Deeds generally

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Examples of deeds taxable under § 58.1-801 of the Code of Virginia:
1. Where real estate is conveyed to a
				"strawman" or nominee for the purchaser who paid the entire consideration and
				the title is taken in this form for the purchaser's convenience pursuant to an
				agreement. When the "strawman" or nominee conveys the property to the purchaser
				for no consideration, this second conveyance is also a taxable transfer based
				on the actual (fair market) value of the property at the time of the
				conveyance.
2. A conveyance of real
				estate by the personal representative of an estate and/or by a surviving
				beneficiary of a decedent as the result of an election by such beneficiary
				established under the terms of the decedent's will. The doctrine of election
				rests upon the equitable principle that he who accepts a benefit under a deed
				or will must adopt the whole contents of the instrument, conforming to all its
				provisions, and renouncing every right inconsistent with it. If by one clause
				of a will a legacy is given A, and by another clause an estate of which A is
				the owner is given B, unless A surrenders to B the estate, A cannot have the
				legacy. In order to raise a case of election, there must appear in the will
				itself a clear intention on the part of the testator to dispose of that which
				is not his own.
3. Where a deed of
				bargain and sale conveys real estate and the deed recites that for and in
				consideration of $100,000, of which $10,000 is cash in hand paid, and a
				promissory, negotiable bond of even date for $90,000 which includes interest.
				The deed further provides that of the consideration of $100,000, $65,000 is
				principal and the balance is interest. The consideration is stated to be
				$100,000. The tax would be based on that amount including interest.
4. A deed of exchange of realty.
5. If a grantor conveys real estate and keeps
				the deed in his possession and makes no delivery of the deed to the grantee
				until a later date, the date of delivery of the deed to the grantee is the date
				of the conveyance, and the actual (fair market) value of the property as of the
				date of delivery controls in the matter of computing the tax when offered for
				recordation.
6. When a deed conveys
				property to a life tenant with remainder in fee simple to X and Y. The life
				tenant dies. The tenants in common, X and Y, transfer their interests by deed
				to themselves as joint tenants with the right to survivorship. There being no
				consideration, the tax is based on the actual (fair market) value of the
				property. (No tax is imposed, however, if X and Y are husband and wife and the
				tax has been paid on the original deed. See § 58.1-810 of the Code of
				Virginia.)
7. A deed conveying real
				estate from a trustee of a trust to a beneficiary of the trust, unless provided
				otherwise in § 58.1-811A(A)(13).
8. A deed reconveying real estate to the
				seller upon the buyer's default.
9.
				A deed reconveying property to the former owner pursuant to court order after a
				finding of fraud in the original transaction which court order rendered the
				conveyance voidable.
10. A
				conveyance of real estate to a foreign government.
11. A "quitclaim" deed, unless a specific
				exemption otherwise applies.
12. A
				conveyance of realty not pursuant to a decree of divorce or incident thereto,
				unless provided otherwise in § 58.1-810(3) of the Code of
				Virginia.