Tax Type
General Provisions
Description
Nonresident real property owner registration
Topic
Property Subject to Tax
Date Issued
12-13-1990
December 13, 1990 ..
Re: Request for Ruling: Nonresident Real Property Owner Registration
Dear ****
This will reply to your letter of November 7, 1990, requesting a ruling on how Va. Code §58.1-317 applies to resident sellers of real property in the State of Virginia.
RULING
Pursuant to the above-referenced Code section. a nonresident payee. meaning: an individual. estate. or trust who is a nonresident as defined in Va. Code §58.1-302; a partnership which has any nonresident partner(s), an S corporation which has any nonresident shareholder(s): or a C corporation which is not formed or organized under Virginia law. who receives payments from the transfer of present or future fee simple title in real property in the Commonwealth of Virginia must complete a registration form or a certificate of exemption, if applicable.
Unless the party who sells real estate located in Virginia meets the definition of a nonresident payee, then that party will not be required to complete either the registration form (Form R-5) or the certificate of exemption (Form R-5E). A real estate reporting person. however, is not precluded from requesting a seller to complete the certificate of exemption, as proof that the sale is not a transaction required to be registered. In any case, if the certificate of exemption is completed by the seller, a copy must be filed with the Department in accordance with the mandatory filing procedures and a copy must be retained by the real estate reporting person.
If you need any additional information. please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner