Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2013
Revenue and Taxation Code
Part 6.7. Documentary Transfer Tax Act
CHAPTER 3. Exemptions
11926. Instruments taken in lieu of foreclosure. Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of or in lieu of foreclosure; provided, that such tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. Consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee shall be noted on said deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.
History.—Added by Stats. 1971, p. 804, in effect March 4, 1972. Stats. 1973, Ch. 645, p. 1188, in effect January 1, 1973, added "from the mortgagor or trustor as a result of or" after "taken", deleted "a" before "foreclosure", where it first appears, added the rest of the first paragraph thereafter, and added the second paragraph. Stats. 1974, Ch. 413, p. 1003, in effect January 1, 1975, added the second sentence, and deleted the former second paragraph regarding the establishing of entitlement to the exemption.