Real Estate Transfer Fee Common Questions

Farmland

  1. Can "Farmland Use Value" be used for Total value of REAL ESTATE when agricultural property is being conveyed?

Federal Revenue Stamp

  1. If a deed has the Federal Revenue Stamps on it, how do you calculate the price paid for the property from these stamps?

Fees

  1. Is the Department of Revenue responsible for paying fees to the Register of Deeds when requesting copies of documents?

Financing

  1. I am selling my house and am giving back a "second mortgage" which may or may not be forgiven. How is the transfer form filled out for "Grantees Financing"?

Foreclosures

  1. Four people (2 couples) purchased real estate, with all 4 named as grantees on the deed. One couple furnished the purchase price and made an agreement with the other couple to contribute. The non-paying couple cannot pay and will quit claim to the paying couple. Is this transaction exempt from fee as a deed in lieu of foreclosure?

Farmland

  1. Can "Farmland Use Value" be used for Total Value of Real Estate when agricultural property is being conveyed?

    No. Use value assessment is a method of of assessing agricultural land for Chapter 70, Wis. Stats., and is not used for value on the transfer return per definitions under sec. 77.21, Wis. Stats. Value for transfer fee purposes is defined in sec. 77.21(3)(a), Wis. Stats., which provides:

    "Value" means:
    (a) In the case of any conveyance not a gift, the amount of the full actual consideration paid therefor or to be paid, including the amount of any lien or liens thereon; and
    (b) In case of a gift, or any deed of nominal consideration or any exchange of properties, the estimated price the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property and at prevailing general price levels.

Federal Revenue Stamp

  1. If a deed has the Federal Revenue Stamps on it, how do you calculate the price paid for the property from these stamps?

    Prior to 1969, the United States government had a revenue stamp that was at the rate of $0.55 on each $500.00, or fractional part thereof, of the sale price or value of the property conveyed. Values of less than $100.00 were exempt from the stamp.

Fees

  1. If the Department of Revenue responsible for paying fees to the Register of Deeds when requesting copies of documents?

    No. According to sec. 59.43(2) (b), Wis. Stats., the Department of Revenue is exempt from the fee.

Financing

  1. I am selling my house and am giving back a "second mortgage" which may or may not be forgiven. How is the transfer form filled out for "Grantees Financing"?

    More than one box must be checked. Check the box "Obtained from seller" and any additional box as to where the primary financing is obtained. In addition to a second mortgage, any type of financial arrangement from the seller such as "credit", "gift", "donation" etc. must have the box "Obtained from seller" checked in addition to any other box showing where the balance of the financing is obtained.

Foreclosures

  1. Four people (2 couples) purchased real estate, with all 4 named as grantees on the deed.  One couple furnished the purchase price and made an agreement with the other couple to contribute. The non-paying couple cannot pay and will quit claim to the paying couple.  Is this transaction exempt from fee as a deed in lieu of foreclosure?

    Yes. The Wisconsin State Statutes, (sec. 706.05, Wis. Stats.), states these types of documents (mortgage, agreement), are "entitled" to be recorded.  Wisconsin law does not require the mortgage to be recorded to be valid.  However, it is in the best interest of the lender to record the mortgage or agreement to protect their lien interest in the real estate.

FOR MORE INFORMATION CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Equalization Bureau
P.O. Box 8971 MS 6-97
Madison, WI 53708-8971
Phone: (608) 264-6885 or (608) 266-1594
Fax: (608) 264-6897
E-Mail Additional Questions to eretr@revenue.wi.gov

March 21, 2014