What is the controlling interest statute in Maryland?

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.

US Legal Forms
Maryland Reporting a Transfer of a Controlling Interest in a Real...

Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity

Name: Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.58 (348 reviews)

Category:

Maryland Secretary of State - Business Entity

State:

Maryland

Control #:

MD-SKU-0635

Format:

Instant download

This website is not affiliated with any governmental entity

Public form

Description

Reporting a Transfer of a Controlling Interest in a Real Property Entity 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 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.

View VERDICT FORM, FOR PLAINTIFF, PUNITIVE DAMAGES

View this form

View A04 Proof Of Publication

View this form

View VERDICT FORM, FOR DEFENDANT (FIRST STAGE)

View this form

View A02 Order For Default Judgment

View this form

View MINOR --- DEFINED --- RIGHT TO SUE OR DEFEND

View this form

How to fill out Maryland Reporting A Transfer Of A Controlling Interest In A Real Property Entity?

If you’re looking for a way to properly complete the Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity without hiring a lawyer, then you’re just in the right place. US Legal Forms has proven itself as the most extensive and reputable library of formal templates for every individual and business scenario. Every piece of paperwork you find on our web service is drafted in accordance with nationwide and state laws, so you can be certain that your documents are in order.

Follow these simple guidelines on how to obtain the ready-to-use Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity:

Ensure the document you see on the page corresponds with your legal situation and state laws by checking its text description or looking through the Preview mode.
Type in the document title in the Search tab on the top of the page and select your state from the dropdown to find another template in case of any inconsistencies.
Repeat with the content check and click Buy now when you are confident with the paperwork compliance with all the demands.
Log in to your account and click Download. Create an account with the service and choose the subscription plan if you still don’t have one.
Use your credit card or the PayPal option to pay for your US Legal Forms subscription. The blank will be available to download right after.
Decide in what format you want to save your Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity and download it by clicking the appropriate button.
Upload your template to an online editor to fill out and sign it quickly or print it out to prepare your hard copy manually.

Another great advantage of US Legal Forms is that you never lose the paperwork you acquired - you can pick any of your downloaded blanks in the My Forms tab of your profile any time you need it.

Form Rating

4.58

Satisfied(348)

Form popularity

FAQ

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.

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.

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 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.

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 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%

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.

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.

More info

Generally, a transfer tax is imposed on documents that convey an interest in real property from one person or legal entity to another person or legal entity. When real property is bought and sold in Maryland and a deed is recorded, recordation and transfer taxes are imposed.Tax on transfer of controlling interest in entity possessing real property. Rate of tax applied to the value of the real property. Sec. 12-638c. First, there must be a transfer of a "controlling interest" in an entity, and second, such entity must be a "real property entity.". Each transfer of real property at the time the deed is submitted for recordation. The tax is based upon the consideration paid for the transfer. As a practical matter, a real property transfer tax is typically triggered if a deed is recorded. If the conveyance is not recorded (e.g. As a practical matter, a real property transfer tax is typically triggered if a deed is recorded.

Maryland Reporting a Transfer of a Controlling Interest in a Real Property Entity

Description

Related forms

How to fill out Maryland Reporting A Transfer Of A Controlling Interest In A Real Property Entity?

Show more info

Form Rating

Form popularity

FAQ

What is the controlling interest transfer tax in Illinois?

What is a transfer of controlling interest in Maryland?

What is required to be recorded in Maryland?

What is the controlling interest transfer tax in Florida?

What is a controlling interest transfer?

What is the controlling interest transfer tax in NYC?

What is the controlling interest statute in Maryland?

What is a controlling interest transfer return Washington Department of Revenue?

More info

Trusted and secure by over 3 million people of the world’s leading companies