Is Your Seller a Maryland Resident?

Is  Your Seller a Maryland Resident?

Being wonderfully busy with new listings, this question needs to be addressed. Is Your Seller a Maryland Resident?

                                         

   Tax Alert-- Change in Maryland Withholding Tax

                                     

Effective June 1, 2012, the Maryland tax rate applicable to withholding on a sale or transfer of real property by a non resident of the state, will increase 7%

Since I am not an attorney or an accountant, I let a professional, like  Jeff Margolies , answer in the form of this newsletter. 

Newsletter 

Effective June 1, 2012, the Maryland tax rate applicable to withholding on a sale or transfer of real property by a nonresident individual will increase, as follows:

 Ø      Nonresident Individuals -  7.00 percent  

 Ø      Nonresident Entities  - 8.25 percent  (remains the same) 

Some of you have asked me what constitutes a Resident.   Below is the most common question that I have been receiving, and my answer: 

Question:  I have customers that recently moved from Maryland and currently live out-of- state.  They are selling their former home.  Since they no longer live in the State of Maryland, do they have to pay withholding taxes?

Answer:  Certain transfers are exempt from the payment of Maryland withholding taxes.  One of them is the sale of a principal residence.  The Office of the Comptroller regulations define principal residence as described in the Internal Revenue Code (26 U.S.C. §121) and listed as a principal residence with the State of Maryland.  According to the IRS, if the real estate was used as the seller(s) primary residence for at least two years (2) during the five year (5) period ending with the date of the sale, then the gain from the sale is exempt from being included in gross income.  Currently that amount is $250,000.00 for individuals and $500,000.00 for married couples filing a joint return.

According to MD TAX-GENERAL Code Ann. § 10-912, in order to obtain the exemption in Maryland, the transferor(s) must sign a certification under penalties of perjury that the property being transferred is their principal residence.  The certification must be recorded together with the instrument transferring the property. 

§ 10-912 (d)  Exceptions.- Subsection (c) of this section does not apply when: 

 (5) a certification under penalties of perjury that the property being transferred is the transferor's principal residence is provided by each transferor in:  

 (i) the recitals or the acknowledgment of the deed or other instrument of writing transferring the property to the transferee; or  

 (ii) an affidavit signed by the transferor or by an agent of the transferor that accompanies and is recorded with the deed or other instrument of writing transferring the property; 

At Supreme Title Company, this is accomplished by having the sellers sign the form entitled “Certificate of Exemption from Withholding-MD”, which is then recorded with the Deed.

Please remember…

Each tax situation is unique.  Since Supreme Title Company cannot give legal or tax advice, customers should consult with a tax professional before moving forward. 

For more information regarding withholding see the Comptroller of Maryland’s page at: http://individuals.marylandtaxes.com.  

Jeffrey E. Margolies, Esq.

Supreme Title Company, Inc.
www.supremetitlecompany.com
www.supremetitle.net

Is Your Seller a Maryland Resident?

Being wonderfully busy with new listings, this question needs to be addressed. Is Your Seller a Maryland Resident?

Paying It Forward...a Really Good Day!

This has been a really good day starting with a challenging workout at the gym followed by a settlement with one of my favorite all time buyers and sellers. I say buyers and sellers because we sold and settled on their home last week and they bought and settled on another today. It was a smooth settlement, everyone was happy and smiling...even the sellers who are right in the middle of their move.

Jeff Margolies , attorney with Supreme Title, got an email from the lender saying it was the first time there was not one change on the HUD 1.  In other words it was done right the first time.  That's exactly what we expect when everyone on the team is a professional and we have buyers and sellers who are nice and sensitive to other's feelings.

During settlement there were numerous calls and I do answer my phone   which is always on vibrate. I stepped out to take a call from one special lady by the name of  Joeann Fossland.  Yes the settlement was important but if you understand WIN...that was an important call to take. My friend will be in Baltimore to teach the PMN course   and for sure we will get together again!

After the closing, I stopped to pick up some Godiva Chocolates for a gift...and went by the bank to make a deposit. It was a drive through with the pneumatic tube coming down to the car window. I put my deposit slip inside and at the last second took it back and added a piece of wrapped chocolate.
                                                              

As I was driving away the teller was jumping up and down waving her arms and hands and mouthing '' Thank You, Thank You''. My goodness...it was just one piece of chocolate. Now I wish I had put more in. What a nice pay it forward...and so easy to do!

When I checked my mail there was not one but two separate hand written thank you notes. You know by now that is the best paycheck for me.

One more good thing...final initials and we have  a ratified contract on 406 N Port St. 21224.   This listing was a referral through ActiveRain by Lenn Harley. Thank you Lenn!

Paying it Forward...a Really Good Day!

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         Search the MLS just like Realtors®               

                                                                                                                             Click to search All Active Maryland Listings 

 

   You can narrow the search down to number of bedrooms, lot size, price range, zip code etc. Be sure to sign up with your email address to ensure daily email updates of properties. These emails will include photos, address and price of  the listed  homes. This is a free service to help make finding your special Baltimore home easier.  I am available to answer any questions or concerns. mrome@HomeRome.com  410-530-2400

Another Active Rain Success!

The contract offer was written on June 18th, the contract was accepted on July 7th, bank approval was given on July 13th and closing took place today August 25!

 

A Quick Smooth Short Sale is No Big Deal...as long as you have the right team. So glad Bridget is on my team!

You do know that Bridget and I met through ActiveRain!

Via Bridget "Mortgage Mama" McGee (Allied Home Mortgage Corp 410-960-2061):

Another Active Rain Success! 

Back at the end of February I got the call from Margaret Rome about a lovely family interested in moving in Baltimore.  They were not first time homeowner's, they had a home to sell.  Of course, Margaret was the listing agent, so I knew it wouldn't be long before they were ready to pack their bags.  They took some time to get their home ready for sale, and Margaret was ready to do her thing

I provided them an estimated net proceeds calculator, reviewed all of their financial information, we discussed their options.  They were ready to start the search.

Margaret pulled out all the stops, blogging about the home they were searching for, even walking the neighborhood with flyers to let folks in their chosen neighborhood know she had some special buyers who may be interested in purchasing their home if they were thinking about selling.

Their home went under contract.  They hadn't found the right home yet, so their parents opened their doors (temporarily) to the whole family.  Mr. Buyer got a hard time at work for living with his folks, but his parents were thrilled to have the grandkids underfoot and enjoyed all the home cooking provided by Mrs. Buyer! 

Not long after, they found THE ONE!  It wasn't in the neighborhood they had chosen.  It wasn't a townhome. It was a fabulous single family home that was much more home then they had even considered.  Oh, and it was a short sale with not one but two liens! Oh No!  We have all heard the horror stories.  Heck, most of us have been involved in the horror stories!  Depending on the bank, this could be a nightmare.  We warned the buyers that they might just have to plan on an extended stay with the parents!

A contract was submitted, shortly thereafter it was accepted with a few minor adjustments.  Both liens (with Wells Fargo) signed off, and we were ready to go!  At Margaret's request we ordered the title from Jeff Margolies of Supreme Title.  He worked behind the scenes to ensure that everything went smoothly, even with a seller in BANGLADESH!  Papers had to be overnighted and signed at the American Embassy.  Apparently there is no wrench that Jeff and his team can't make go away!  Here's Jeff, a true title pro.  He will tell you that his lovely bride (and business partner) helps to make everything happen.

Robert Ellin (the listing agent) and his team did a fabulous job of taking care of the lien holders, getting all the approvals and working with Jeff to facilitate the seller's side.  On the buyer's side Margaret helped the buyer through all the necessary inspections.  The appraisal came in with no conditions.  The purchase loan package was submitted, the loan was approved with only minimal conditions. 

Conditions cleared, and the file was moved into the closing department.  The loan documents arrived at the title company a full week BEFORE settlement.  The HUD (Settlement statement) was prepared and approved by all parties.  The funds arrived at the title company the evening before settlement.  It's just how we roll (or at least what we do our very best to do!)

Settlement began with Jeff Margolies, Margaret Rome and the buyers. And of course, I was there.  Closing is my favorite part of the whole process!  Being there also allows me to work my Mortgage Mama Magic to help calm nervous buyers and answer any questions that may come up in closing. 

Not long after, the seller, a power of attorney for seller #2, and the listiing agent team of Robert Ellin and Wendy _________ came in.  It was a lively settlement room!  The seller seemed relieved and settled.  The agents were thrilled at how smoothly everything went, the folks at Supreme Title were knowledgable and professional, and the buyers were a little anxious, hoping that nothing would go wrong!  Everything signed and sealed, documents had to be sent for review to the lender.  A slight delay in waiting for the go-ahead for funding meant that we had time for a little photo shoot and more conversation.    All in all a very smooth transaction, with a great team in place that made it all happen!

Congratulations my new friends!  We sincerely wish you a long and wonderful life in your new home!

From Left to Right Robert Ellin (Coldwell Banker) Margaret Rome (Home Rome Realty) and our happy buyers.

Congratulations!!  It's over and now your new happy life can begin!  Happy 15 year anniversary!! Blessings!
ANOTHER ACTIVE RAIN SUCCESS STORY!!

Warm Regards,
Bridget McGee  Maryland Mortgage Mama   Allied Home Mortgage Corp #1448  410-960-2061 EHO
If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure!
For home owner's we provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

A Quick Smooth Short Sale is No Big Deal!

A Quick Smooth Short Sale...No Big Deal!

The contract offer was written on June 18th, the contract was accepted on July 7th, bank approval was given on July 13th and closing took place today August 25!

A Quick Smooth Short Sale is No Big Deal...as long as you have the right team.

Our team consisted of a terrific listing agent Robert Ellin, title attorney Jeff Margolies,  Margaret Rome and Mortgage Mama.

We also had the most cooperative and pleasant seller plus  wonderful buyers!

The team worked together in harmony keeping each one updated and getting everything the bank wanted in a timely manner.

In my opinion, it is the relationship of the listing agent with the bank that makes or breaks a short sale. Robert Ellin was a delight to work with and on top of each and every detail.

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I like the laminated survey Supreme Title gives to the buyer.

                                        
                                              
                                                 

I had the best buyers in the world! At first we were looking for                a townhouse with garage. We were lucky it was not available because we found this wonderful single family home with a two car garage in a neighborhood with lots of their friends!

 

                                      

                                             

  

Always  thought M&M stood for Margaret in Maryland but Bridget said otherwise..Mortgage Mama. Can we both be right? Absolutely!

A Quick Smooth Short Sale is No Big Deal...as long as you have the right team.