Real Estate Transfer Fee Common Questions - G

Gifts

1. Is a gift of real estate to a public school district exempt from transfer fee under state law (sec. 77.25(2g), Wis. Stats.)?
   
   
2. If I give a gift of real estate to a private university or college foundation am I exempt from transfer fee under state law (sec. 77.25(2g), Wis. Stats.)?
   
   
3. If I give my nephew a house, is a transfer return and fee due?

Government Agencies

1. Are all sales to a governmental agency exempt from fee under state law (sec. 77.25(12), Wis. Stats.), pursuant to or in lieu of condemnation?


2. My company just started handling the resale of properties foreclosed by Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). Will a transfer fee be due when a property is sold to a new buyer, or does exemption sec. 77.25(2), Stats, apply to these sales?


3. Can you provide some examples of other governmental agencies that are exempt from transfer fee under Exemption 2?

Gifts

1. Is a gift of real estate to a public school district exempt from transfer fee under state law (sec. 77.25(2g), Wis. Stats.)?

   Yes. A gift to a public school district is exempt from fee per state law (sec. 77.25(2g), Wis. Stats.). Note: A gift to a private school is subject to fee per administrative rule (Tax 15.03(5), Wis. Adm. Code), which relates to: "conveyances between an individual and a tax exempt organization."

2. If I give a gift of real estate to a private university or college foundation am I exempt from transfer fee under state law (sec. 77.25(2g), Wis. Stats.)?

   No. Since a private university or a foundation is not an instrumentality, agency or subdivision of the United States or the state, your gift is not exempt.

3. If I give my nephew a house, is a transfer return and fee due?

   Yes. Even though the house was a gift, you must pay a fee on the full market value of the property per state law (sec. 77.21(3)(b), Wis. Stats.). Transactions between an uncle or aunt and niece or nephew are not exempt.

Government Agencies

1. Are all sales to a governmental agency exempt from fee under state law (sec. 77.25(12), Wis. Stats.), pursuant to or in lieu of condemnation?

   No. Not all sales to a governmental agency are exempt from fee. The conveyance is exempt per Exemption 12 as "pursuant to or in lieu of condemnation" if the sale meets the criteria under state law (sec. 32.05, or sec. 32.06, Wis. Stats.). At a minimum the procedures under Chapter 32 for condemnation must be initiated.

2. My company just started handling the resale of properties foreclosed by Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). Will a transfer fee be due when a property is sold to a new buyer, or does exemption sec. 77.25(2), Stats, apply to these sales?

   A conveyance from Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are exempt from transfer fee per state law (sec. 77.25(2), Wis. Stats.), as an instrumentality of the United States based on Rust v. Johnson, 597 F.2d 174 (9th Cir. 1979). Freddie Mac and Federal National Mortgage Association (Fannie Mae) are exempt from transfer fee. See sec. 77.25(2), Wis. Stats. ("From the United States or from this state or from any instrumentality, agency or subdivision of either").

3. Can you provide some examples of other governmental agencies that are exempt from transfer fee under Exemption 2?
   • Department of Housing and Urban Development, 42 USCS § 3532
   • Farm Credit Banks, 12 USCS § 2011 (only four exist):
     • AgFirst Farm Credit Bank
     • AgriBank, FCB
     • Farm Credit Bank of Texas
     • CoBank, ACB
   • Production Credit Association, 12 USCS § 2091
   • Veterans Administration, 38 USCS § 201
   • Federal Home Loan Mortgage Corporation (Freddie Mac)
   • Federal National Mortgage Association (Fannie Mae)
   • Government National Mortgage Association (Ginny Mae)
   • Federal Deposit Insurance Corporation
   • Federal Agriculture Mortgage Corporation (Farmer Mac)

Questions?

Contact us at RETR@wisconsin.gov.