Real Estate Transfer Fee Common Questions - E

Easement

Is a transfer return required for the recording of an easement at the Register of Deeds?
No. Easements are specifically excluded from transfer return requirements by statute. The instrument should include a statement that it is "an easement only and not a conveyance."

A buyer buys vacant Lot 1, but decides he wants Lot 2 instead. The buyer is now going to trade Lot 1 back to the seller in exchange for Lot 2. There is no adjustment to the original purchase price. Can both exchange deeds be exempt under state law (sec. 77.25(3), Wis. Stats.)?
No. Transfer fees are due on both exchange deeds. Exemption 3 (for corrections) does not apply. An exchange of real property involves two separate conveyances, and the value must be determined separately for each.

Explain the concept of property exchanges. What should be done if one exchanged property value is higher than the other?
Two separate and distinct conveyances are involved, and the value for each property is determined separately. The values do not "offset" each other for fee purposes.

Under what circumstances may the Register of Deeds accept deeds (instruments of conveyance) without a transfer return?
When you present a deed or other instrument for recording without a transfer return, you must include some instruction on the document. This allows the Register to form a judgment for acceptance or rejection.
Examples:
An option or right of first refusal to purchase - "This is an option (or right of refusal to purchase), not a conveyance as defined by state law (sec. 77.21(1), Wis. Stats); and is not subject to transfer return or fee imposed under sec. 77.22(1), Wis. Stats."
Exemptions (1) and (10m) do not require the filing of a return
Note: It is the responsibility of the parties to exempt the transaction from a transfer return and fee, not the Registers of Deeds. The Register of Deeds should never accept a verbal claim of exemption.

Is a conveyance of a cemetery lot subject to a transfer return and fee?
No. A conveyance of a cemetery lot is exempt from the transfer return and fee under administrative rule (tax 15.05(6), Wis. Adm. Code). The document should include language to the effect of, "This is a cemetery lot and is exempt from transfer return and fee under administrative rule (tax 15.05(6), Wis. Adm. Code)" in keeping with the procedures of the Register of Deeds accepting documents without returns.
Note: A conveyance of land for use as a cemetery is subject to a transfer return and fee per the same code.

If there is no statement on the document exempting the recording from a return, and the grantee's agent is insisting the document is exempt from return and fee, can the Register of Deeds record the document?
No. If the document is exempt from the return and fee requirement under state law there must be a statement on the front of the document exempting it.
- Example statement - "This document is a lease of less than 99 years, not a conveyance as defined by state law (sec. 77.21(1), Wis. Stats.), and is exempt from a return and fee imposed (sec. 77.22(1), Wis. Stats.)"
If the document is designating or removing a TOD beneficiary under state law (sec. 705.15, Wis. Stats.), it is exempt from transfer return and fee.
- Example statement - "This document is designating or removing a TOD beneficiary under state law (sec. 705.15, Wis. Stats.), and is exempt from return and fee per state law (sec. 77.25(10m), Wis. Stats.)"