Deed Transfer and Recordation - Baltimore County (2024)

FAQs

What is the transfer and recordation tax in Baltimore County? ›

Baltimore County Transfer Tax Rate—1.5 percent of consideration. State Recordation—$2.50 each $500 (or fraction thereof) of the consideration noted or for an instrument of writing securing a debt or the principal amount of the debt secured.

Maryland law requires all deeds to include the names of the grantor (the seller) and grantee (the buyer), a description of the property, and the interest that you intend to convey. All deeds must be recorded with the Department of Land Records in the county where the property is located.

The tax is applied to instruments that transfer an interest in real property (deed, lease, easem*nt, contract, etc.). The tax is one half of 1 % (0.5%) of the consideration, except for deeds to a first time MARYLAND home buyer, in which case the tax is one fourth of 1 % (0.25%).

When the Land Records clerk is satisfied that the correct documents have been submitted, the clerk will accept the documents for filing. After your documents are recorded, the original deed will be mailed to you, which often takes 4-6 weeks.

In Maryland, you are responsible for the state and county transfer taxes, as well as the county recordation tax. It is customary for the seller and the buyer to split the total transfer and recordation tax amount equally (if no exemptions apply). The Maryland state transfer tax rate is 0.5%.

Maryland law ordinarily assumes that the current owner and new owner will split the tax liability equally. A seller is primarily liable if the buyer is a first-time Maryland home buyer who qualifies for a discounted tax rate. Any person may pay transfer tax or recordation tax by agreement of the parties.

Individuals not licensed to practice law in this state may not prepare a deed for anyone else. A Certificate of Preparation attests that the document was prepared by an attorney licesned to practice law in the State of Maryland.

To be recorded, a grant deed must be signed by the grantor, and the signature must be acknowledged. Witnesses are not required for conveyances of real estate in Maryland. The deed must be executed and recorded in order to provide notice of the transfer.

A deed is a record of ownership for a piece of real estate such as land or a home. They are kept in the Land Records Department. Every Maryland County and Baltimore City has a Land Records Department located in that county's circuit court. Deeds and other documents stored in land records are open to the public.

Transfer tax is at the rate of . 5 percent of the actual consideration, unless they are a first-time Maryland home buyer purchasing a principal place of residence, in that case the transfer tax rate is . 25 percent of the actual consideration.

What are transfer and recordation taxes in Maryland? ›

What is Maryland Transfer and Recordation Tax? Transfer and recordation taxes cover the work it takes to transfer and record property titles. In Maryland, you are responsible for the state and county transfer taxes, as well as the county recordation tax.

(j) An assignment of a mortgage or deed of trust is not subject to recordation tax. (2) if it is filed or recorded with the Department under § 9–501(a)(2) of the Commercial Law Article. (l) A judgment of a court is not subject to recordation tax. (m) A release is not subject to recordation tax.

A Maryland deed must be filed with the clerk of the circuit court for the county where the real estate is located. Attorney Practice Note: Maryland law often requires deeds that change the property's ownership to be processed through the county's property tax office before filing with the clerk.

In Maryland, real estate can be transferred via a TOD deed, also known as a beneficiary deed. This deed allows a property owner to designate a beneficiary who will automatically inherit the property upon the owner's death, avoiding probate.

Recordation & Transfer Taxes

In the case of instruments conveying title to property, the recordation tax shall be at the rate of $4.10 per $500.00 rounded, of the actual consideration paid or to be paid, in the case of instruments securing a debt, the tax shall be on the amount of the debt secured.

Closing costs are the amount of money needed to complete a home purchase. These costs can average between 5% – 8% of a home's purchase price (in addition to down payment funds) and typically include title, recording, and inspection fees; property taxes, and other escrow funds.

On October 1, 2019, the District increased both recordation and transfer tax rates from 1.45% to 2.5% for a combined total of 5% on commercial or mixed-use (Class 2) property deed transfers of over $2 million. The District also increased the recordation tax rate for applicable D.C. deeds of trust from 1.45% to 2.5%.

IRS rules define them as nondeductible for the same reason they are unfair: Transfer taxes do not apply broadly and are paid by only a small portion of the population in a given year.