Contributed By McGuireWoods LLP
Subject to limited exemptions, the recording of most deeds, including deeds of trust and mortgages, requires the payment of recording tax in Virginia (at a rate of 25 cents on every $100 or fraction thereof of the principal amount secured, as such rate reduces incrementally for each $10 million up to $40 million, and thereafter at 13 cents) plus local recording tax equal to one third of the state recording tax. On deeds of trust or mortgages securing the refinancing of an existing debt secured by a deed of trust or mortgage on which the tax was paid, the rate for the state recording tax is 18 cents on each $100 of the principal amount secured, declining to 10 cents for amounts at or above $40 million, plus the local tax equal to one third of the state tax. In addition, there are administrative filing fees charged by the recording offices. In connection with enforcing its lien, a lender will incur administrative fees and attorneys’ fees, and will often need to cure any unpaid taxes.