County sues Freddie Mac, Fannie Mae for unpaid fees

Along with Fulton, Gwinnett, Cobb, Cherokee, Bibb, Carroll, Whitfield and Walton, Barrow is filing suit against Freddie Mac and Fannie Mae in hopes of recouping money they say is owed them from home sales.

“… A tax is owed to the Clerk of Superior Court ‘on each deed, instrument, or other writing by which any lands, tenements, or other realty sold is granted, assigned, transferred, or otherwise conveyed to or vested in the purchaser or purchasers, or any other person or persons by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance existing prior to the sale and not removed by the sale) exceeds $100.00,” according to the lawsuit.

This tax is commonly referred to as a transfer tax.

According to the case, the counties say that “Fannie Mae and Freddie Mac have assigned, transferred, or otherwise conveyed to or vested in the purchaser or purchasers, or any other person or persons by his or their direction, by deed, instrument, or other writing by which any lands, tenements, or other realty sold is granted for consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance existing prior to the sale and not removed by the sale) exceeding $100.00, but have not paid the Georgia Transfer Tax.”

The suit says that according to law, the entities are legally obligated to pay the transfer tax in conjunction with the sale of each property, regardless of whether a deed was recorded.

The case argues that no federal or state exemptions are applicable in these sales.

See more in the Wednesday, Feb. 27, 2013 edition of the Barrow County News.


Comments are closed.