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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 320. Recordation Tax Regulations

23VAC10-320-20. Deeds generally.

A. Examples of deeds taxable under § 58.1-801 of the Code of Virginia:

1. Where real estate is conveyed to a "strawman" or nominee for the purchaser who paid the entire consideration and the title is taken in this form for the purchaser's convenience pursuant to an agreement. When the "strawman" or nominee conveys the property to the purchaser for no consideration, this second conveyance is also a taxable transfer based on the actual (fair market) value of the property at the time of the conveyance.

2. A conveyance of real estate by the personal representative of an estate and/or by a surviving beneficiary of a decedent as the result of an election by such beneficiary established under the terms of the decedent's will. The doctrine of election rests upon the equitable principle that he who accepts a benefit under a deed or will must adopt the whole contents of the instrument, conforming to all its provisions, and renouncing every right inconsistent with it. If by one clause of a will a legacy is given A, and by another clause an estate of which A is the owner is given B, unless A surrenders to B the estate, A cannot have the legacy. In order to raise a case of election, there must appear in the will itself a clear intention on the part of the testator to dispose of that which is not his own.

3. Where a deed of bargain and sale conveys real estate and the deed recites that for and in consideration of $100,000, of which $10,000 is cash in hand paid, and a promissory, negotiable bond of even date for $90,000 which includes interest. The deed further provides that of the consideration of $100,000, $65,000 is principal and the balance is interest. The consideration is stated to be $100,000. The tax would be based on that amount including interest.

4. A deed of exchange of realty.

5. If a grantor conveys real estate and keeps the deed in his possession and makes no delivery of the deed to the grantee until a later date, the date of delivery of the deed to the grantee is the date of the conveyance, and the actual (fair market) value of the property as of the date of delivery controls in the matter of computing the tax when offered for recordation.

6. When a deed conveys property to a life tenant with remainder in fee simple to X and Y. The life tenant dies. The tenants in common, X and Y, transfer their interests by deed to themselves as joint tenants with the right to survivorship. There being no consideration, the tax is based on the actual (fair market) value of the property. (No tax is imposed, however, if X and Y are husband and wife and the tax has been paid on the original deed. See § 58.1-810 of the Code of Virginia.)

7. A deed conveying real estate from a trustee of a trust to a beneficiary of the trust, unless provided otherwise in § 58.1-811(A)(13).

8. A deed reconveying real estate to the seller upon the buyer's default.

9. A deed reconveying property to the former owner pursuant to court order after a finding of fraud in the original transaction which court order rendered the conveyance voidable.

10. A conveyance of real estate to a foreign government.

11. A "quitclaim" deed, unless a specific exemption otherwise applies.

12. A conveyance of realty not pursuant to a decree of divorce or incident thereto, unless provided otherwise in § 58.1-810(3) of the Code of Virginia.

Statutory Authority

§§ 58.1-203 and 58.1-801 of the Code of Virginia.

Historical Notes

Derived from VR630-14-801, eff. January 1, 1985.

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