(1) Instruments given by one party in a divorce action to the other party to the divorce action as a division of martial property whether by agreement or order of the court. This exemption applies regardless of whether the instrument is in the form of a warranty deed, quitclaim deed of other instrument evidencing transfer of title to real estate. This exemption applies regardless of whether the parties agreed to the division. For purposes of this exemption the term “divorce” includes both divorce or separate maintenance.

(2) Commissioner's deeds, sheriff's deeds, trustee's deeds or other similar instruments are exempt from the Real Estate Transfer Tax when that deed is given as a result of judicial proceedings to enforce a security interest in the same real estate which the instrument conveys. However, this exemption applies only if the instrument conveys the real estate to a party to the action who is seeking to enforce his security interest in the property conveyed.

Commissioner's deeds, sheriff's deeds, trustee's deeds and other similar instruments given as a result of judicial proceedings to enforce security interests in real estate are not exempt when someone other than a party enforcing a security interest in the property conveyed purchases the property at the judicial sale. In this case, the tax must be paid and stamps must be placed on the deed reflecting the full amount of consideration.

Facts: Jane Doe bought property from Jim Smith. Jane gives $100,000 as consideration for the property. She pays $25,000 cash. She borrows $50,000 from ABC Bank and gives them a note and 1^st mortgage for this amount. She gives Jim Smith a note for the $25,000 balance and a second mortgage. Several years later Jane becomes insolvent and fails to make her mortgage payments.

Example A: ABC Bank files suit to foreclose its mortgage. At the sale of the property the Bank bids the amount of its judgment, which is the amount outstanding on the note plus costs for a total of 35,000. Jim Smith is made a party to the suit and his second mortgage is foreclosed as part of the proceedings but he cannot afford to bid. There are no other bids. ABC Bank receives a Commissioner's deed to the property in exchange for satisfaction of its judgment and the foreclosure of Jim Smith's second mortgage. No tax is due on the Commissioner's deed.

Example B: ABC Bank files suit to foreclose, naming Jim Smith as a party. The Bank obtains judgment against Jane Doe for $35,000. Jim Smith obtains a judgment for $20,000 against Jane Doe. To protect his mortgage Jim Smith bids $40,000 for the property and is the highest bidder. Jim Smith receives a Commissioner's deed to the property in return for his payment of $35,000 plus costs and satisfaction of his own judgment in the amount of $5,000. No tax is due on the Commissioner's deed.

Example C: Assume the same facts as Example B except that Mary Jones bids $55,000 for the property and is the highest bidder. Mary Jones had no interest in the property prior to the judicial sale. Mary Jones receives the Commissioner's deed to the property in return for her payment of $55,000 plus costs. Tax is due on this Commissioner's deed. Stamps should be place on the deed to show payment of tax on a consideration of $55,000.

(3) Any deed, whether warranty deed, quitclaim deed or other similar instrument, which transfers real estate to a party having a security interest in the same real estate, whether the security interest is given my mortgage, deed of trust of other similar instrument, are exempt from the tax when the instrument is given to avoid a foreclosure or other similar judicial proceeding to enforce the security interest.

(4) Deeds, where warranty deeds, quitclaim deeds or other similar instruments, given by the purchases of real estate under a contract are exempt from the tax when the deed is given to the seller under the real estate contract to avoid judicial proceedings for recission [sic] of the contract, cancellation of the contract, foreclosure or other similar proceedings.

(5) Instruments conveying cemetery lots or cemetery plots or any other interests allowing the disposition of human remains are exempt from the Real Estate Transfer Tax.