Arkansas Amends Provisions Regarding Recordation of Deeds
The General Assembly of the state of Arkansas has recently amended Arkansas Code section 26-60-110, which relates to the recordation of deeds for purposes of the real property transfer tax. These updates will become effective on August 18, 2017 (or 91 days after adjournment of the current legislative session).
These provisions outline the circumstances under which a county recorder in Arkansas may record a deed after real property is transferred. Most importantly, before he or she may record a deed evidencing the transfer of the property, the grantee or buyer (or his or her agent) must provide proof of the payment of transfer taxes, or proof of exemption from the payment of transfer taxes.
The regulations explain that a county recorder may not record an instrument confirming a transfer of title unless the instrument includes an affidavit or compliance form from the Department of Finance and Administration, as well as documentary stamps (or a documentary symbol) attached to the face of the instrument, which indicate that the property taxes for the subject transaction have been paid in full.
In addition, the instrument must include a notation on its face that the above-mentioned affidavit was completed, or a notation on or attached to the instrument that states “I certify under penalty of false swearing that documentary stamps or a documentary symbol in the legally correct amount has been placed on this instrument.” This statement must be signed by the grantee (or his or her agent), and his or her address must also be shown on the instrument.
In the case of the transfer of real property that is not subject to transfer tax, an affidavit or compliance form from the Department of Finance and Administration will not be required if it is stated on the instrument, “This instrument is exempt from the real property transfer tax,” or a substantially similar statement.
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
Comments are closed.