03
May 2012

Alert- Virginia Recordation Tax on Refinances Changing

By admin

When ordering Virginia Title Insurance for a Virginia refinance please take note of changes coming to the recordation tax that the State charges. When providing a GFE disclosure for new Virginia refinances take note of changes on the way starting July 1, 2012. We want you to be aware of a change to Virginia Code § 58.1-803(D) – which concerns the calculation of recordation tax on a refinance deed of trust.

The code section has been revised to eliminate the exemption for amounts refinanced with the same lender. Instead, the recordation tax on a deed of trust given to refinance any existing debt will be according to set tiers, starting at $0.18 per hundred on the first $10 million of value.

This change is applicable to deeds of trust recorded on and after July 1, so it should impact a good faith estimate any bank is issuing presently that won’t close before July 1.

The revisions continue to require a certification of the deed book and page number of the prior instrument securing the debt now refinanced.

Here is a link to the statutory revisions.  

 

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