Virginia Law

A. The exemption set forth in § 58.1-811(A)(2) of the Code of Virginia does not apply if the conveyance is made to any corporation, a separate entity of a church or religious body, and not to the trustee or trustees of a church or religious body. This also applies under § 58.1-811(B)(2) of the Code of Virginia where the conveyance is made by any corporation, a separate entity of a church or religious body, rather than trustees of the religious organization conveying to trustees under a deed of trust.

B. A conveyance to a health clinic is not exempt under § 58.1-811(A)(5) of the Code of Virginia unless the clinic is an integral part of a hospital conducted not for profit.

C. To qualify for the exemption under § 58.1-811(A)(6) of the Code of Virginia:

1. The transfer must take place upon organization of the corporation. The transfer must be made within a period of time sufficiently close to the inception of the corporation so that it can be reasonably concluded that the transfer is an integral part of the formation of the corporation;

2. The transferor(s) must be in control of the transferee corporation immediately after the transfer. The transferor(s) must own:

a. at least 80% of the total combined voting power of all classes of stock entitled to vote;

b. at least 80% of the total number of shares of all other classes of stock of the corporation; and

3. The transaction must qualify in all other respects with § 351 of the Internal Revenue Code, as it exists at the time of the transfer.

D. Liquidation of a partnership whereby the partnership is the grantor and in its plan of dissolution it is set out that the partners (grantees) will receive designated units of a condominium. By separate deeds of conveyance each grantee will receive his proportionate interest in the condominium; however, no partner (grantee) received 50% of the profit and surplus of the partnership. A transaction of this nature does not qualify under § 58.1-811(A)(10) of the Code of Virginia.