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. How do I complete a transfer return for a Chapter 128 receivership sale?

  3. 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?

Correcting/Amending a RETR

  1. Can you correct (amend) a real estate transfer return (RETR) before it has been recorded by the Register of Deeds?

  2. Can you amend a real estate transfer return (RETR) after it has been recorded by the Register of Deeds?

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?

    The sale is exempt only if it is to a mortgage holder of record (Exemption 14 applies).

    If sold to a third party with no prior interest, it is not exempt, and a transfer fee is due on the sale price (or estimate value if the sale is nominal).

  2. How do I complete a transfer return for a Chapter 128 receivership sale?

    Complete the RETR with the following selections/explanations made:

    • Document Type: Foreclosure – sheriff's deed
    • Conveyance Type – select one of the following:
      • Sheriff's deed (with prior interest in the mortgage or property
      • Sheriff's deed (no prior interest in the mortgage or property
    • Grantor/Grantee Relationship: Other and Explain "Chapter 128 receivership sale"
    • Transfer fee exemption if applicable – select "14 – Foreclosure"

  3. 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. The receiver is considered the grantor and is liable for the transfer fee.

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 (RETR) is required and Exemption 3 applies.

  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?

    A transfer fee is due on the initial $100,000 when the life estate is recorded and is also due on the amount paid for the "repurchase" (90 percent of $100,000) when the instrument terminating the life estate is recorded.

  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 considered a conveyance of real property. The document recorded must include a statement claiming the exemption.

Confidentiality

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

    The RETR is secure, and only DOR has access to the Social Security Number (SSN), Individual Tax Identification Number (ITIN) or Federal Employer Identification Number (FEIN) once submitted. Under state law, DOR can make all other information from the returns available to the public.

Conversion of Entities

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

    No. A conveyance between two entities does not meet the statutory requirements of a conversion and is not exempt.

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

    Yes. Exemption 6m applies if, after the conversion, the ownership interests in the new entity are identical to the ownership interests in the original entity, and the statutory requirements are met, reviewed and 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 only applies for conveyances from the corporation. To qualify, the corporation must have held title to the property for three or more years prior to the conveyance, in addition to other requirements. It does not apply to 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 exemptions applies. For Exemption 15 to apply, the president must be a shareholder (and all shareholders must be related as required by the exemption), the conveyance must be for no consideration (other than stock transfer or debt assumption), and the corporation must have owned the property for three or more years.

Correcting/Amending a RETR

  1. Can you correct (amend) a real estate transfer return (RETR) before it has been recorded by the Register of Deeds?

    Yes, you can amend a real estate transfer return (RETR) in My Tax Account (MTA) system that has been submitted but not recorded. Review the Amend an unrecorded RETR Guide on how to do this.

  2. Can you amend a real estate transfer return (RETR) after it has been recorded by the Register of Deeds?

    Yes, you can amend a real estate transfer return (RETR) in My Tax Account (MTA) system that has been submitted but not recorded. Review the following guides on how to do this:

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). A corrective instrument is exempt from a transfer fee under state law (Exemption 3).

    • Note: You must obtain a new RETR for this recording. You cannot amend the prior RETR and re-submit. If you do this your recording will be rejected by the Register of Deeds.

Questions?

Contact us at RETR@wisconsin.gov.



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