If you are in real estate in the Kansas City area you may have noticed that Kansas and Missouri have different sets of rules and fees to follow. One of the hardest to explain over the years has been the Kansas Mortgage Registration Tax (MRT), until now! In years past, the MRT was paid at the time of recording a document based on the amount of the mortgage. For instance, in 2014 a $100,000.00 mortgage had a MRT of $260.00, plus recording fees typically in between $120.00 to $250.00.
In 2014 the Kansas Legislature passed House Bill 2643 (HB 2643) that provided a five-year phase-out of the MRT starting on January 1, 2015 where it was reduced from .026% to .2% of the mortgage amount. Following that, it went down by .05% each year until it was phased-out completely on January 1, 2019!
Also in this bill, the State increased the per-page recorded fees by $4.00 per page each year until it reached the max on January 1, 2018 of $21.00 for the first page and $17.00 for each addition page, with no increase in 2019. NOTE: A cap of $125.00 on the total document recording fees was placed on a single family mortgage for a principal residence where the principal debt secured by the mortgage is $75,000.00 or less.
In a world where “everything goes up,” this phase-out will mean savings for homebuyers along with current homeowners that are refinancing. If you have any questions about this or you just want to talk title, please feel free to contact Clear Title.
As always: I’m not an attorney and this is not legal advice.