<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 03.04.12.03" title_num="03" subtitle_num="04" chapter_num="12" heading="Withholding Requirements.">
  <paragraph num="A.">
    <text>Except as provided in §B of this regulation, a deed or other instrument transferring title may not be:</text>
    <paragraph num="(1)">
      <text>Recorded with the clerk; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Filed with the Department.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>A deed or other instrument transferring title may be recorded with the clerk or filed with the Department when:</text>
    <paragraph num="(1)">
      <text>Payment is made to the clerk or Department in an amount equal to the applicable percentage of the total payment to a nonresident or nonresident entity, respectively, as stated in Tax-General Article, §10-912(c), Annotated Code of Maryland;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The transferor certifies under the penalties of perjury in the transfer document or an attached affidavit that the transferor is a resident or resident entity;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The transferor certifies under the penalties of perjury in the transfer document or an attached affidavit that the property being transferred is the transferor's principal residence as defined in Regulation .02 of this chapter;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The transferor presents to the clerk or the Department:</text>
      <paragraph num="(a)">
        <text>A Certificate of Full or Partial Exemption (Form MW506E) issued by the Comptroller in accordance with Regulation .04 of this chapter; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>If a partial exemption is issued by the Comptroller, payment in the amount shown as due on the Certificate of Full or Partial Exemption;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>The transfer is:</text>
      <paragraph num="(a)">
        <text>A transfer pursuant to a foreclosure of a mortgage, deed of trust, or other lien instrument; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A transfer pursuant to a deed in lieu of foreclosure;</text>
      </paragraph>
    </paragraph>
    <paragraph num="(6)">
      <text>The transferor is an agency or instrumentality of the United States;</text>
    </paragraph>
    <paragraph num="(7)">
      <text>The transferor is:</text>
      <paragraph num="(a)">
        <text>The State;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A unit of the State; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>A political subdivision of the State; or</text>
      </paragraph>
    </paragraph>
    <paragraph num="(8)">
      <text>The property is transferred pursuant to a deed or other instrument of writing that includes a statement of consideration required by Tax-Property Article, §12-104, Annotated Code of Maryland, indicating that the consideration payable is zero.</text>
    </paragraph>
  </paragraph>
</regulation>