Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity is a process that requires the filing of a Certificate of Transfer with the Maryland Department of Assessments and Taxation (SEAT). The purpose of this document is to report any transfer of a controlling interest in a real property entity, such as a corporation, limited liability company, partnership, or trust. This document must be signed by the transferor and the transferee and must include the following information: the name of the transferor, the name of the transferee, the legal description of the property, the date of the transfer, and the value of the controlling interest. Depending on the type of entity, there are two types of Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity: the Corporate Transfer Certificate and the Qualified Transfer Certificate. The Corporate Transfer Certificate is used for the transfer of a controlling interest in a corporation, while the Qualified Transfer Certificate is used for the transfer of a controlling interest in a limited liability company, partnership, or trust. Upon filing, the transferor and the transferee must also pay a filing fee.
Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity
Description
How to fill out Maryland Reporting A Transfer Of A Controlling Interest In A Real Property Entity?
If you’re seeking a method to accurately finalize the Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity without employing an attorney, then you have arrived at the correct destination.
US Legal Forms has established itself as the most comprehensive and esteemed repository of official templates for every personal and corporate situation. Each document you encounter on our web platform is composed in accordance with national and state regulations, ensuring that your files are correctly organized.
Another significant benefit of US Legal Forms is that you never misplace the documents you acquired - you can retrieve any of your downloaded templates in the My documents section of your profile whenever you require it.
- Confirm that the document displayed on the page aligns with your legal circumstances and state regulations by reviewing its text description or browsing through the Preview mode.
- Input the document title in the Search tab at the top of the page and select your state from the dropdown to locate another template if any discrepancies arise.
- Reiterate with the content verification and click Buy now when you are assured of the paperwork’s adherence to all requirements.
- Log in to your account and click Download. If you don’t have one yet, create an account with the service and select a subscription plan.
- Utilize your credit card or the PayPal option to settle the payment for your US Legal Forms subscription. The document will be accessible for download immediately after.
- Choose the format in which you want to preserve your Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity and download it by clicking the relevant button.
- Upload your template to an online editor for quick completion and signing, or print it out to prepare a physical copy manually.
Form popularity
FAQ
What is a controlling interest transfer? A controlling interest transfer occurs when there is a 50% or more change of ownership in an entity. If that entity owns real property in Washington, a controlling interest transfer return is required to be completed within 5 days of the completed transfer.
Maryland's controlling interest statute, contained in Section 12-117 of the Tax-Property Article of the Annotated Code of Maryland (the "Statute"), imposes tax on the sale of an interest in an entity that owns real estate if two conditions exist.
The tax is usually paid as part of closing costs at the sale or transfer of property. Residential Type 1 or Type 2 sales or transfers: If the consideration is $500,000 or less, the rate is 1% of the consideration. If the consideration is more than $500,000 the rate is 1.425%
An option or contract to purchase real property is an interest in real property. Therefore, the transfer or acquisition of a controlling interest in an entity that holds an option or contract to purchase real property results in a conveyance of an interest in real property that is subject to tax.
The tax rate for documents that transfer an interest in real property is $. 70 per $100 (or portion thereof) of the total consideration paid, or to be paid, for the transfer.
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.
Background of the Tax on Transfers of Controlling Interests When real property is bought and sold in Maryland and a deed is recorded, recordation and transfer taxes are imposed. These taxes range from about 1% of the consideration in some counties to 3% in Baltimore City.
For example, in Illinois the real estate transfer tax is imposed on the transfer of a controlling interest, which is defined as more than 50 percent of the fair market value of all ownership interests or beneficial interests in a real estate entity.