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#2064817 - 02/18/16 04:53 PM IN County Auditor Fee-recorder fee or transfer tax
Dazed&Confused2 Offline
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Joined: Nov 2015
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Hello,

Is the Indiana County Auditor Fee considered a recorder's fee or a transfer tax fee? We were told before TRID that it was a Recorder fee. Depending on the title company, it is being shown as a recorder fee but we've also seen it as a transfer tax fee.

On our disclosures, we don't have enough space on line #1 of the recorder's fee to describe all of the fees if we have more than 2. So the Indiana Recorder's fee description doesn't show on the TRID disclosures even though it is added into the total for that line.

How are others handling this fee? If so, do you have a reference from the state where it notes what the fee is considered (recorder or transfer tax).

Any comments appreciated.

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#2064869 - 02/18/16 07:46 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dazed&Confused2
justsayjulie Offline
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back home again
I can answer your question about disclosing the recorder's fees on the CloD because I asked a similar question back in September, in this thread:

https://www.bankersonline.com/forum/ubbt...ion#Post2039345

This is the portion of the webinar mentioned in the thread, too:

CFPB Webinar 11/18/2014:

Walton-Fein: Yes, David, we have received a few questions about the taxes and the other government fees part of the disclosure. So, first we have been asked: How does the disclosure of recording fees differ between the Loan Estimate and the Closing Disclosure?

Friend: Well, the Loan Estimate requires the sum of all recording fees to be disclosed as one item. The provision for that is found at § 1026.37(g)(1)(i). The Closing Disclosure also requires the recording fees to be disclosed as one item, but also requires that the amount paid to record the deed and mortgage be itemized separately. The itemized recording fee for the deed and the mortgage should only include the amounts needed to record each of those documents. Recording fees associated with any other documents, except for the deed and the mortgage, are just included as part of the total recording fees and are not separately itemized. See § 1026.38(g)(1)(i). Please note that the total recording fees are allocated between the consumer, seller and others in the applicable column pursuant to the agreement among those parties.

Walton-Fein: Thanks, David. We've also been asked: How should creditors disclose the name of the government entity to whom a transfer tax is distributed?

Friend: So creditors should disclose the name of the entity assessing the transfer tax, even if that is different from the payee of the check cut by the settlement agent. State and local governments collect transfer taxes in many different ways, and sometimes the checks for the payment of transfer taxes are not made out to the entity actually assessing the transfer tax. However, this fact is irrelevant for purposes of the Closing Disclosure, the governing authority assessing the transfer tax must be disclosed, along with the amount paid by the consumer, the borrower, seller and others. See 1026.38(g)(1)(ii).
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#2065151 - 02/19/16 10:39 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dazed&Confused2
Dan Persfull Offline
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Bloomington, IN
Indiana state law (IC 6-1.1-5.5) requires the filing of a sales disclosure form (SDF) whenever real property is sold. These data are used by assessors in the determination of the annual market-based adjustments of assessed property values.

The Sales Disclosure is not a transfer document. It is basically used by the state and counties to gather sales information for analytical purposes. The fee if a filing fee, not a transfer tax.
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#2240267 - 07/28/20 07:05 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dan Persfull
Truffle Royale Offline

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sorry to resurrect an ancient thread but I need to know if the Sales Disclosure recording fee can be built into a title companies settlement service fee. Seems wrong to me but I'm in Wisconsin....

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#2240274 - 07/28/20 07:45 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dazed&Confused2
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
This fee is paid to the County Auditor, not the title company therefore the CD must show the fee being paid to the auditor.

From the OSI to 1026.19(e)(3).

3. Fees “paid to” a person. For purposes of § 1026.19(e), a fee is not considered “paid to” a person if the person does not retain the fee. For example, if a consumer pays the creditor transfer taxes and recording fees at the real estate closing and the creditor subsequently uses those funds to pay the county that imposed these charges, then the transfer taxes and recording fees are not “paid to” the creditor for purposes of § 1026.19(e). Similarly, if a consumer pays the creditor an appraisal fee in advance of the real estate closing and the creditor subsequently uses those funds to pay another party for an appraisal, then the appraisal fee is not “paid to” the creditor for the purposes of § 1026.19(e). A fee is also not considered “paid to” a person, for purposes of § 1026.19(e), if the person retains the fee as reimbursement for an amount it has already paid to another party. If a creditor pays for an appraisal in advance of the real estate closing and the consumer pays the creditor an appraisal fee at the real estate closing, then the fee is not “paid to” the creditor for the purposes of § 1026.19(e), even though the creditor retains the fee, because the payment is a reimbursement for an amount already paid.
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#2240276 - 07/28/20 07:52 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dazed&Confused2
Truffle Royale Offline

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Thanks for the affirmation, Dan. I'm 'discussing' this with a title company now who claims: … It is included in our Settlement Service Fee and Lake County Recorder bills us a lump sum monthly when we record documents not per document.

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#2240277 - 07/28/20 07:53 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dazed&Confused2
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
Just a side note. Even though we itemize this separately Encompass rolls it into the recording fees.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2240279 - 07/28/20 07:57 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dazed&Confused2
Truffle Royale Offline

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While we're on this topic, I understand it, the pertinent Indiana law changed last summer:
A change to Indiana IC code IC 36-2-9-18 has increased the Indiana Sales Disclosure fee structure and cost.
Previously we were including $15 in the recording fee. That covered the form and up to three parcels.
Now the fee is broken out as follows: $10 for the form and $10 for each parcel associated with that form.
Ex: Purchase of a home located on a single parcel will now cost $10 for the form and $10 for the parcel = $20 Indiana Sales Disclosure fee.

Am I correct that now that fee should start at $20 on the LE?

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#2240282 - 07/28/20 08:14 PM Re: IN County Auditor Fee-recorder fee or transfer tax Dazed&Confused2
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
Yes we are disclosing the $20. If we later find there is more than one parcel we will do a changed circumstance revision to the LE.
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The opinions expressed are mine and they are not to be taken as legal advice.

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