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Matthew P. Kingery |
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| Matthew P. Kingery Partner Charleston, WV (304) 357-9936 | Phone (304) 357-0919 | Fax Email: [email protected] |
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* The rate of the real estate transfer tax varies by county in West Virginia. It is a common misconception that the transfer tax in West Virginia is $4.40 for each $1,000 in consideration or value. By statute, however, the base transfer tax rate may range from $1.65 per $500 to $2.20 per $500 in value, with a portion going to the county and a portion going to the state. In addition, pursuant to the Voluntary Farmland Protection Act, counties with farmland protection programs may impose an additional real estate transfer tax of $2.20 per $1,000 in value. Also, although a recording fee must be paid when recording a deed of trust, a transfer tax is not imposed on the recording of a deed of trust.
* Although it is recommended to do so, owner’s title insurance is rarely purchased in West Virginia for residential properties. Therefore, if a buyer wishes to have this protection, he generally has to pay for the policy himself or negotiate for the seller to cover the cost. Insurance companies are required to file rates for title insurance with the West Virginia Offices of the Insurance Commissioner, and this information is available to the public.
* In West Virginia, the process for closing on a real estate purchase is attorney-driven and title or closing agencies are the exception and not the rule in this State. For instance, the Unauthorized Practice Committee of the West Virginia State Bar has indicated that conducting a real estate title examination and real estate closing are the practice of law, and therefore, may not be conducted by a lay person unless he is under the direct supervision and control of a licensed lawyer, or the lay person conducts such activities on behalf of his regular employer. The Unauthorized Practice Committee recently issued an Advisory Opinion which further restricts the role of lay people in real estate closings in order to protect consumers; however, this opinion has been suspended indefinitely, so it is unclear at this point whether the guidelines contained in the Advisory Opinion will eventually go into effect.
* West Virginia is a natural resources rich State and, accordingly, it is not uncommon for residential purchasers to only take title to the surface of land due to the prior severance of the natural resources. In many West Virginia counties, it is unlikely that a title opinion will be issued for anything but the surface rights unless the related title examination is expanded upon the request of the purchaser. Additionally, many title insurers except coverage for mineral interests.
* The West Virginia Housing Development Fund (“WVHDFâ€) often has incentives for first time homebuyers, including mortgage loans with below-market interest rates and up to 100% financing, as well as down payment and closing cost assistance loans. Information about WVHDF loan programs is available online at http://www.wvhdf.com.
* Property tax records for some counties in West Virginia are available online through the sheriffs tax office, however, this information is not available online for most counties in West Virginia. Additionally, it is rare that a West Virginia county’s real estate records are available online. Accordingly title examinations are generally
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