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FORM  1099-S  INFORMATION
Any questions? Please call (800) 445-1099 for further information.

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Section IX

EXEMPT VOLUME TRANSFERORS


Certain sellers, known as Exempt Volume Transferors, are exempt from the real estate reporting provisions. The most common example of this type of seller is a builder or developer who is in the trade or business of selling real estate. The properties being sold are treated as inventory and not as investment (i.e., capital gain) property.

A transferor qualifies as an Exempt Volume Transferor (EVT) if he or she provides a certification containing the following information:

  1. Name, address, and taxpayer identification number of the EVT
  2. Sufficient information to identify the property being transferred but not being reported by virtue of the exemption
  3. Declaration that he or she has sold at least 25 separate items of otherwise reportable real estate to at least 25 separate buyers:
    1. during either of the two prior calendar years, OR
    2. during the current calendar year, or expects to sell said 25 properties during the current calendar year
  4. A statement that each of the 25 properties at the time of closing was or will be help primarily for sale or resale to customers in the ordinary course of the EVT's trade or business.

The certification also must be:

  1. Signed under penalty of perjury by the EVT
  2. Received by the settlement agent prior to the time of closing
  3. Retained by the settlement agent for four years following the close of the calendar year in which the date of closing occurs.

It is within the settlement agent's discretion to disregard the certification and to report the sale of the real property if the settlement agent has reason to believe the seller does not qualify for the exemption.

Additional topics:

Who is Subject to the Reporting Requirements
Which Transactions are Subject to the Reporting Requirements
Multiple Sellers
Foreign Sellers
Exchanges
Contingent Payment Transactions
How to Contact Us

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FORM 1099-S INFORMATION
Any questions? Please call (800) 445-1099 for further information.