New Transfer Tax Disclosure Requirement from Elaine Golden-Gealer

The Documentary Transfer Tax Act authorizes the board of supervisors of a county or city and county to impose a tax with respect to specified instruments that transfer specified interests in real property.

The amenAB1888dments enacted by AB 1888 eliminate the ability to keep a commercial real estate purchase price and sales transaction private.

The act requires the amount of tax due and the location of the property to show on the face of the document, and if the party submitting the document for recordation requests, that the amount of tax due be shown on a separate paper affixed to the document. The act prohibits the recorder from recording any deed, instrument, or writing subject to the tax, unless paid at the time of recording, and requires a signed declaration of the amount of tax due on the face of the document or on a separate paper as provided by the act.

This bill would delete the requirement that, upon request, the amount of tax due be shown on a separate paper affixed to the document, and would make a conforming change to the signed declaration requirement. This bill goes into effect January 1, 2015.

SB 1050

Senate Bill 1050 is the latest change to the form and wording of the statutory certificates of acknowledgment, jurat and proof of execution prescribed under California law in recent years. SB 1050 adds a prescribed consumer disclosure to each of these certificates.

Chapter: 197
Affects: Amends Civil Code Sections 1189 and 1195, and Government Code Section 8202

Changes:

1. Requires the statutory acknowledgment, jurat and proof of execution certificate to contain a prescribed consumer disclosure in a box at the top of each certificate.

2. Requires the prescribed disclosure to be legible.

3. Clarifies that the physical format of the boxed notice in the new law is an example, for purposes of illustration and not limitation, of the physical format of the boxed notice that fulfills the requirement of the new law.

Elaine                                                     
DRE #00598428
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed

“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”

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