Real Estate Transfer Fee Common Questions - C

​​​ Chapter 128 - Receivership Sale

  1. Is the sale from a Chapter 128 (Wis. Stats.) receiver exempt from transfer fee?

  2. If an improper exemption from transfer fee is claimed or the value subject to transfer fee is under reported, is the Chapter 128 receiver liable for a Real Estate Transfer Fee assessment?

Condos (Condominiums, Dockominiums, Garageominiums)

  1. Does a condo declaration amendment that relocates the boundaries between adjoining units require a transfer return?

  2. If a condominium sells its units as "life estates" for $100,000 and at the time of sale, it also signs a "Repurchase Agreement" whereby the condominium will purchase the "life estates" back for 90 percent of the $100,000. What transfer fees are due and at what values?

  3. A condominium is selling its units as a 75-year lease for $100,000. Is a transfer return and fee due?

Confidentiality

  1. What precautions does​ the Wisconsin Department of Revenue (DOR) take to ensure the confidentiality of Real Estate Transfer Return (RETR)​?

Conversion of Entities

  1. Is a conveyance of real estate between two entities exempt from transfer fee under Exemption 6m?

  2. Is a deed filed to give notice of a conversion of an entity exempt from transfer fee?

Corporations

  1. What is the three-year requirement for the exemption in state law (sec. 77.25(15), Wis. Stats.), for corporations?

  2. If a corporation deeds its property to the corporation's president for no consideration, is a transfer fee due​?

Corrections (before Register of Deeds records the RETR)

  1. Can you describe the RETR correction procedure?

  2. If I do not have a document number, how do I file an Amended Real Estate Transfer Return (PE-500x)?

  3. Can I correct a deed by electronic filing an Amended (PE-500x)?

Corrections (after Register of Deeds records the RETR)

  1. How should I complete a transfer return when a deed is recorded correcting or reforming a previously recorded deed?

  2. How do I correct a transfer return after the Register of Deeds records it?

Correction Instrument/Affidavit of Correction

  1. If I record a Correction Instrument/Affidavit of Correction instead of re-recording a previously recorded deed, do I need to file a transfer return

Chapter 128 - Receivership Sale

  1. Is the sale from a Chapter 128 (Wis. Stats.) receiver exempt from transfer fee?

    If the sale is to a:

    • Mortgage holder of record, then it is exempt from transfer fee. Exemption 14 applies.

    • Third-party with no prior interest in the mortgage, then it is not exempt and a transfer fee is due on the sale price. If the sale is nominal, the fee is due on the real estate's fair market value.

  2. If an improper exemption from transfer fee is claimed or the value subject to transfer fee is under reported, is the Chapter 128 receiver liable for a Real Estate Transfer Fee assessment?

    Yes. Under state law (sec. 128.19(1), Wis. Stats.), the "receiver" is vested by operation of law with the title of the debtor. Therefore, the receiver is the grantor of the real estate. Under state law (sec. 77.22(1), Wis. Stats.), a transfer fee is imposed on the grantor of real estate.

Condos (Condominiums, Dockominiums, Garageominiums)

  1. Does a condo declaration amendment that relocates the boundaries between adjoining units require a transfer return?

    Yes. A transfer return is required. A deed and an ​RETR must be completed to convey title to real estate. There is no exemption for this conveyance.

  2. If a condominium sells its units as "life estates" for $100,000 and at the time of sale, it also signs a "Repurchase Agreement" whereby the condominium will purchase the "life estates" back for 90 percent of the $100,000. What transfer fees are due and at what values?

    When recording the life estate, a transfer fee is due on the $100,000. A life estate is a conveyance of real property interest. Additionally, the "repurchase" is subject to fee on the amount paid to buy back the life estate when the instrument terminating the life estate is recorded. The value of the "repurchase" is determined by state law (sec. 77.21(3)(a), Wis. Stats.), as "the amount of the full actual consideration paid therefore or to be paid, including the amount of any lien or liens thereon."

  3. A condominium is selling its units as a 75-year lease for $100,000. Is a transfer return and fee due?

    No. A lease less than 99 years is not a conveyance of real property per state law (sec. 77.21(1), Wis. Stats.). The document recorded should include this statement, "This is a lease less than 99 years and therefore is not a conveyance as defined by sec. 77.21(1), Wis. Stats. This lease is exempt from return and fee imposed under sec. 77.22(1), Wis. Stats." The filer, not the Register of Deeds, must exempt the document.

Confidentiality

  1. What precautions does the Wisconsin Department of Revenue (DOR) take to ensure the confidentiality of the Real Estate Transfer Return (RETR)?

    RETR is secure and only the Wisconsin Department of Revenue (DOR) has access to the Social Security number (SSN) or Federal Employer Identification n​umber (FEIN) once submitted. The SSN or FEIN only appear on a saved file and in the RETR's printed Summary Section.​

    Under state law (sec. 77.265(9), Wis. Stats.), DOR may make available to the public, all information obtained from the returns except Social Security numbers and telephone numbers from the returns.

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Conversion of Entities

  1. Is a conveyance of real estate between two entities exempt from transfer fee under Exemption 6m?

    No. A conveyance of real estate between entities does not meet any of the statutory requirements of an interest exchange under state law (sec. 178.1141, 179.1141, 180.1161, 181.1161, or 183.1041 Wis. Stats.), and is not exempt from transfer fee under sec. 77.25(6m), Wis. Stats.

  2. Is a deed filed to give notice of a conversion of an entity exempt from transfer fee?

    Yes. Sec. 77.25(6m), Wis. Stats. exempts conveyances pursuant to the conversion of an entity to another type of entity. Pursuant to the conversion of a business entity to another form of business entity under sec. 178.1141, 179.1141, 180.1161, 181.1161, or 183.1041, if, after the conversion, the ownership interests in the new entity are identical with the ownership interests in the original entity immediately preceding the conversion.

    In order for the exemption to apply, it must:

    • Meet all the statutory requirements​

    • Be submitted to the Wisconsin Department of Financial Institutions (DFI) on the prescribed form for review

    • Be accepted by DFI

Corporations

  1. What is the three-year requirement for the exemption in state law (sec. 77.25(15), Wis. Stats.), for corporations?

    2. This requirement only applies to conveyances from the corporation. To qualify for the exemption in state law (sec. 77.25(15), Wis. Stats.), the corporation must have had title to the property for three or more years prior to the conveyance, in addition to the other stated requirements. The holding period requirement does not apply for conveyances to the corporation.

  2. If a corporation deeds its property to the corporation's president for no consideration, is a transfer fee due?

    Yes. Unless one of the exceptions in state law (sec. 77.25, Wis. Stats.), can be applied. The only exemption that could be applied to a conveyance between a corporation and an individual is sec. 77.25(15), Wis. Stats. For sec. 77.25(15) to apply, all three of the following requirements must be met:

    • President is a shareholder and all the shareholders are related as required by the exemption

    • Conveyance is for no consideration other than the transfer ​​of stock and/or the assumption of debt

    • Corporation has owned the property three or more years prior to the conveyance

Corrections (before Register of Deeds records the RETR)

  1. Can you describe the RETR correction procedure?

    The following describes the RETR correction procedure - if an error is discovered on a real estate transfer return before the Register of Deeds records the transfer, the Register of Deeds will contact the preparer and notify him/her of the error(s). After being notified by the Register of Deeds, the preparer needs to:

    • Return to the RETR web page. "Restore" the saved file and make the necessary corrections.

    • Once you make all corrections, select "Submit" and print the new receipt (which will have a different receipt number)

      • Note: Each time you click the "Submit" button, it creates a new receipt number. Verify you made all necessary corrections before clicking "Submit." Make sure to save a copy of the corrected file.

    • After the corrections are resubmitted, the preparer should send or deliver the new receipt to the Register of Deeds

    • Register of Deeds will then enter the new receipt number. Once the Register of Deeds receives the receipt for the corrected return, you may discard the receipt for the original incorrect return.

    • To view and print the "Register of Deeds Criteria for an Electronic Real Estate Transfer Return (RETR)," visit: revenue.wi.gov/Pages/Publications/slf-pe100e.aspx

  2. If I do not have a document number, how do I file an Amended Real Estate Transfer Return (PE-500x)?

    • A document number is generated after a deed is recorded. An Amended Real Estate Transfer Return (PE-500x) is only used after a deed is recorded and an error is discovered.

    • If you discover an error before you receive a document number, you can correct the error by doing one of the following:

      • While electronically filing the RETR, if you see an error noted on the Summary page, go back to the section with the error and make the correction before clicking "Submit"

      • If you discover an error after you already submitted your return (clicked the green "Submit" button), return to the RETR home page and restore the saved file

        1. Select "Start" and then "Restore Saved Information" (located on the right side below the "Remaining time" counter)

        2. Locate the file on your computer using the "Browse" function and then select "Upload File"

        3. Make the correction, save and click "Submit."  You will get a receipt with a new receipt number to send in with document. Discard the "old" receipt. (Note: If you did not save the return, you must complete a new RETR.)

      • If the deed is already recorded by the Register of Deeds, you may file an Amended Real Estate Transfer Return (Form PE-500x) to correct the error.

      • Note: If you need to re-record a deed or record an affidavit of correction, you must file another RETR. You may not use an amended real estate transfer return (Form PE-500x) for this purpose. You can only file a Form PE-500x after a deed is recorded and if the error is only on the RETR.

  3. Can I correct a deed by electronic filing an Amended (PE-500x)?

    No. To correct an error on a deed, you must complete a new deed and a new Electronic Real Estate Transfer Return (RETR) to file it with the Register of Deeds.

Corrections (after RETR being recorded by Register of Deeds)

  1. How should I complete a transfer return when a deed is recorded correcting or reforming a previously recorded deed?

    Fill out the return the same as the original, except for the following:

    • Correct the items that need changing (ex: name of grantor, grantee, legal description)

    • Under "Type of Transfer," check "Other" and explain what you are correcting/reforming

    • List the real estate value being transferred as zero (0)

    • Select Exemption 3 (sec. 77.25(3), Wis. Stats.), which exempts the deed from the real estate transfer fee, and enter the document number of the document being corrected

  2. How do I correct a transfer return after the Register of Deeds records it?

    • If the deed (instrument of conveyance) is correct but you discover a mistake on the return after the Register of Deeds records it, you may file an amended Real Estate Transfer Return (Form PE-500x)

    • Note: It is not necessary to file an amended Real Estate Transfer Return for minor errors (ex: missing middle initials or minor misspellings of names)

    • If the original RETR has a number of errors, you may want to consider re-recording your deed with a new RETR (correcting all the mistakes). This re-recording with a new RETR would be exempt from a transfer fee under state law (sec. 77.25(3), Wis. Stats.).

Correction Instrument/Affidavit of Correction

  1. If I record a Correction Instrument/Affidavit of Correction instead of re-recording a previously recorded deed, do I need to file a transfer return?

    • Yes. Any deed, Correction Instrument or Affidavit of Correction presented for recording, requires a transfer return (RETR) under state law (sec. 77.22(1), Wis. Stats.). A corrective instrument is exempt from a transfer fee under state law (sec. 77.25(3), Wis. Stats.).

    • Note: State law (sec. 77.25(3), Wis. Stats.), was created with the original enactment of Ch. 77, Sub-Chapter II for Real Estate Transfer Fee in 1968. The legislature created an exemption from transfer fee for correction instruments.

Questions?

Contact us at eretr@wisconsin.gov.

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