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How to minimize recordation taxes in real estate financingsWritten by: Matthew L Kimball Reputation Level 6
Posted almost 3 years ago. Applies to Maryland, 1 helpful vote, 1 comment
1
Determine whether the existing financing can be purchased.In some cases, the lender being refinanced will have no interest in anything other than being paid off, or will be unwilling to provide requisite representations and warranties. 2
If not, consider use of a guaranty.The Guaranty can be secured by an indemnity deed of trust which, under an attorney general opinion, is not subject to the recordation tax. 3
If using a guaranty, make sure the title coverage for the lender will not be affected.Because of possible crediors' rights issues, title insurance must be checked to ensure that no exceptions are taken that would impair the title insurance coverage. Additional ResourcesCheck www.dat.state.md.us/sdatweb/recordation for current recordation tax rates which vary by county. Related Questions2 Attorney answers: 
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