Legislation
Recordation and Transfer Taxes – Exemptions – Domestic Partners
What does this law do?
This law adds "domestic partners" to the list of family members that a person can add and remove from a deed to residential property without paying recordation and transfer taxes.
This transaction may have federal tax consequences. Please consult with a professional for more information.
What is a domestic partner?
As defined in this law, a domestic partnership means a relationship between two people (straight or gay) who are at least 18 years old, are not related to one another, are not married or in a civil union or domestic partnership with someone else, agree to be in a relationship of mutual interdependence (meaning you contribute to the maintenance and support of each other and the relationship), and who live together.
How do we prove we are domestic partners?
You will need an affidavit stating that you meet the definition of domestic partner AND proof of two documents from the list below.
- Joint lease, mortgage or loan
- Designation of one of the individuals as the primary beneficiary on the other’s life insurance or retirement plan
- Designation of one of the individuals as the primary beneficiary of the Will of the other
- Health care or financial power of attorney granted by one of the individuals to the other
- Joint ownership or lease of a motor vehicle
- Joint checking account, joint investment or joint credit card account
- Joint renter’s or homeowner’s insurance
- Coverage of one of the individuals on a health insurance policy of the other
- Joint responsibility for child care, such as a guardianship or school documents
- Relationship or cohabitation agreement
What happens if we are breaking up and a name needs to removed from the deed of a residential property?
You will need an affidavit signed by both of you stating that the domestic partnership has been dissolved
Where do we get an affidavit?
Equality Maryland has an affidavit that you can download and print out. Click here. You will need to sign this affidavit in front of a notary public. This affidavit, along with two documents to prove the domestic partnership, must be submitted to the County Land Records office along with the Deed transferring property to or from a domestic partner.
Do I still have to pay county transfer taxes on a transfer of property to or from my domestic partner?
- If you and your domestic partner are breaking up and the property is being transferred from both of you to one of you, then the transfer is exempt from county transfer tax. This is considered a transfer of property in accordance with dissolution of a domestic partnership and it is not subject to county transfer tax.
- However, unless the property is in Montgomery County, you still will have to pay county transfer tax on a transfer of property from one domestic partner to both domestic partners.
Does this law include all types of real property?
No. This law only applies to residential property, which may include your primary house, a vacation home or rental property.
What happens if I provide all of this and they won't let me add or remove my domestic partner without paying recordation and transfer taxes?
Please contact Equality Maryland at 301 587-7500 or info@equalitymaryland.org and we will try and help.
I am confused; tell me EXACTLY what I should do.
- If you are transferring residential property to or from your domestic partner or former domestic partner, then both of you need to sign and notarize the affidavit declaring that you and your partner are "domestic partners" or were formerly domestic partners and now have dissolved the domestic partnership.
- Attach two of the documents listed above to the affidavit to prove you are in a domestic partnership. This document requirement does not apply to former domestic partners who are transferring residential property as part of dissolution of the domestic partnership.
What happens if I have more questions?
You can email us at info@equalitymaryland.org or call us ay 301-587-7500.