In this chapter, the following terms have the meanings indicated. Terms Defined. “Clerk” means clerk of the circuit court for any county of the State or Baltimore City. “Debt incurred in contemplation of sale” means a debt secured by a mortgage, deed of trust, or other instrument on the property being sold with an effective date of not earlier than 90 days before the date of sale. “Department” means the Department of Assessments and Taxation. “Installment sale” means any sale: In which at least one payment is scheduled after the end of the tax year in which the transfer occurred; and Treated as an installment sale for federal income tax purposes under §453 of the Internal Revenue Code (26 U.S.C. §453). “Like-kind exchange” means an exchange of property within the provisions of §1031 of the Internal Revenue Code (26 U.S.C. §1031). Net Proceeds. “Net proceeds” means the total sales price paid to the transferor less: Debts of the transferor secured by a mortgage or other lien on the property being transferred that are being paid upon the sale or exchange of the property, except debts incurred in contemplation of sale; and Other expenses of the transferor arising out of the sale or exchange of the property and disclosed on a settlement statement prepared in connection with the sale or exchange of the property, not including adjustments in favor of the transferee. “Net proceeds” does not include adjustments in favor of the transferor that are disclosed on a settlement statement prepared in connection with the sale or exchange of the property. “Nonresident entity” means an entity that: Is not formed under the laws of the State more than 90 days before the date of sale of the property; and Is not qualified by or registered with the Department of Assessments and Taxation to do business in the State more than 90 days before the date of sale of the property. “Principal residence” means a residence that is described in §121 of the Internal Revenue Code (26 U.S.C. §121). “Real estate reporting person” has the meaning stated in §6045(e)(2) of the Internal Revenue Code (26 U.S.C. §6045(e)(2)). “Resident” means an individual as defined in Tax-General Article, §10-101(k), Annotated Code of Maryland. “Resident entity” means an entity that: Is formed under the laws of the State more than 90 days before the date of sale of the property; or Is formed under the laws of another state and is qualified by or registered with the Department of Assessments and Taxation to do business in the State more than 90 days before the date of sale of the property. “Transferor” means: The person or entity named as grantor on the deed that records the sale or exchange of the property; or In the case of an LLC, where the sole member is an individual or two married individuals, the entity described in §B(12)(a) of this regulation or the member or members of the LLC.