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Land Bank adopts policy requiring earlier disclosure for complex ownership transfers
Summary
To reduce last-minute delays at closings, the commission adopted an educational pamphlet and a policy asking entities with complex ownership structures to submit transfer documentation at least five days before closing so staff can review and reconcile transfer fees under the Land Bank Act.
The Land Bank Commission approved an educational pamphlet and a complementary policy designed to clarify how the Land Bank’s 2% transfer fee applies when ownership is held through multiple corporate or trust structures.
Staff told commissioners that many recent property transfers on Nantucket involve LLCs, trusts and layered corporate structures, and that those complex transactions sometimes leave the Land Bank unable to reconcile transfer-fee liability until an apparent final sale. Staff said they will post the educational material online and ask legal counsel and brokers to provide the Land Bank with Form 2 transfer information at least five business days before closings so staff have sufficient time to review and avoid last-minute holds on closings.
Mary Anne, who works on transfer reconciliation, said in the meeting she frequently reconciles transfers after the fact and that about 80% of transfers in recent months involve entities of some kind. Staff emphasized that the policy is intended to highlight and operationalize existing obligations under the Land Bank Act rather than to create new fees.
The commission recorded a motion and second and voted to adopt the pamphlet and the five-day submittal policy on the public record; staff will distribute the pamphlet to local real estate professionals and post it on the Land Bank website.
