Presidential Title Wins Case to End Unlawful Transfer Taxes in Baltimore City

BALTIMORE - Oct. 10, 2023 - PRLog -- Presidential Title LLC is pleased to announce a Maryland Tax Court ruling in their favor ending Baltimore City's practice of unlawfully charging transfer taxes on "Purchase Money" Deeds of Trusts held back for construction purposes. Presidential Title, the petitioner, filed this case on behalf of buyers and sellers in the city to end this unlawful practice.

As a licensed title company, Presidential Title has a duty to withhold only those transfer taxes that are authorized by law. Upon closing of the two properties, funding for the property purchases was secured by Deeds of Trust ("DOT") that were characterized as "Purchase Money" (PM). A portion of these DOT was not distributed at settlement, as it was withheld for future investment opportunities. This is known as a Construction Holdback.

Upon closing, Presidential Title withheld funds for paying recordation tax from the purchase of properties, excluding funds to pay tax on the holdbacks secured by the DOT. The City, contrary to the law, refused to allow Presidential to record the DOT at issue alleging additional taxes were due.  Presidential paid these amounts, under protest, and sued for their recovery. The Maryland Tax Court ruled in favor of Presidential Title, finding the City's collection policy is contrary to law.

For future buyers and sellers in Baltimore, this case was a pivotal point in bringing light to the overcharging. Geoff Polk, president of Presidential Title and lawyer on the case, wrote, "I'm really excited about the win for my client, but more importantly, for the taxpayers of the state of Maryland.  Buyers and Sellers of real estate have been overcharged by the City of Baltimore for decades; thankfully, the Maryland Tax Court has finally put a stop to the unlawful and excessive billing that the Maryland legislature never approved" (Geoff Polk, President of Presidential Title).

Presidential Title is a premier title agency licensed through First American operating in 4 states (IL, IN, FL, MD). With over 1,500 closings and 20,000 title searches to date, we leverage cutting-edge technology and unique legal and real estate expertise to facilitate fast, easy, and seamless real estate closings for our clients. Our proprietary technology enables streamlined closings in a matter of minutes, creating a user-friendly experience.

Visit our website today:https://www.presidentialtitlegroup.com/