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BTLG Table of Contents > Sales and Use Tax Annotations > S > 535.0000 Successor's Liability > Annotation 535.0074

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535.0000 Successor's Liability—Regulation 1702

Annotation 535.0074

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535.0074 Successor Liability—Transfer in Lieu of Foreclosure. A former seller of property who reacquires property by deed in lieu of foreclosure when the only consideration received by the purchaser-mortgagor is cancellation of unpaid balance may not be held for successor's liability. There is no "sale" when a mortgagee reacquires property under these circumstances. Thus, there is no "purchase" within the meaning of section 6812.

On the other hand, the transfer of property acquired by deed in lieu of foreclosure by mortgagees who were not also the sellers of the property are liable as successors. In this case, the transfer is a "sale" and "purchase." (See also Annotation 365.0040.) 10/23/95.