Wis. Admin. Code § Tax 15.04 — Land contracts

Tax 15.04(1) (1) Original land contract. Any original contract or any instrument evidencing the existence of a land contract, either of which indicates that such original land contract was made on October 1, 1969 or thereafter, requires the submission of a return as a condition to recording by the register of deeds.

Tax 15.04(2) (2) Deeds in fulfillment of a land contract.

Tax 15.04(2)(a) (a) Any deed or other instrument executed in fulfillment of a land contract, which land contract is dated December 17, 1971, or thereafter, requires the submission of a return and payment of the fee provided by s. 77.22 (2) (b) , Stats., as a condition to recording. The return must show that the deed is given in satisfaction of a land contract and the fee is based on the purchase price established by the terms of land contract.

Tax 15.04(2)(b) (b) Deeds in fulfillment of recorded land contracts dated prior to December 17, 1971 are not subject to the fee. As a result of the changes made by Chapter 150, Laws of 1971 , deeds presented allegedly in fulfillment of an unrecorded land contract dated prior to December 17, 1971 should not be recorded as exempt until the land contract or evidence of the existence of a land contract is recorded. This is necessary to establish that the land contract was in fact dated prior to December 17, 1971.

Tax 15.04(3) (3) Sale of a land contract vendee’s interest. A sale or assignment of a vendee’s interest which is dated October 1, 1969, or thereafter is subject to both the fee and return as a condition to recording.

Tax 15.04(4) (4) Sale of a land contract vendor’s interest. A deed which transfers the interest of a vendor in a land contract to another person is excluded from the provisions of s. 77.22 (2) , Stats. It is therefore not subject to the transfer fee. Under the doctrine of equitable conversion the vendor’s interest in the land contract becomes personal property. Such a transfer is not a conveyance within the definition of s. 77.21 (1) , Stats., because it does not provide for the passage of ownership interest in real estate.

Tax 15.04(5) (5) Recording of a deed issued in partial satisfaction of an original land contract. The basis of the real estate transfer fee shall be prorated in proportion to the area covered by the deed.