Do I need an EIN for this property transfer, and how is it used in the paperwork or recording process? – North Carolina

Short Answer

In North Carolina, an EIN (or other taxpayer ID) is not required on the deed and should not appear in the public record. A taxpayer ID may be needed if the transfer involves a sale or an entity (LLC, corporation, trust, or estate) so the settlement attorney can handle federal tax reporting (for example, IRS Form 1099-S). Recording with the Register of Deeds requires a properly executed, notarized deed and payment of any real estate excise tax due, not a taxpayer ID.

Understanding the Problem

Question: In North Carolina real estate, must an EIN be provided for a land deed transfer, and if so, who uses it and at what stage (closing versus recording)? The scenario involves a deed being circulated between law firms and uncertainty about whether an EIN is needed to complete the transfer and recording with the county Register of Deeds.

Apply the Law

Under North Carolina law, the county Register of Deeds records instruments that meet formatting and execution standards and collects any real estate excise tax due at recording. The Register of Deeds does not require and should not receive Social Security numbers or EINs on recorded documents. Taxpayer IDs are used by the settlement/closing attorney for federal tax reporting on sales (for example, Form 1099-S) and for entity identification (LLCs, corporations, trusts, estates) in closing files—not on the deed itself.

Key Requirements

• Proper parties and execution: The deed must correctly identify the grantor and grantee, and be signed and notarized; entity signers should show capacity (e.g., manager of LLC, trustee).
• Recording standards: The deed must meet Register of Deeds formatting rules (margins, font size, legibility, indexing data) or it can be rejected.
• No personal identifiers on the deed: Do not place Social Security numbers or EINs on the face of the deed; these are not part of the public record.
• Excise tax on conveyances (if it’s a sale): For deeds with consideration, the real estate excise tax is paid at recording; gifts with no consideration generally do not incur this tax.
• Taxpayer ID use at closing: If there is a sale, the settlement attorney typically collects a W‑9 (SSN/EIN) from the transferor for IRS reporting; this information stays in the closing file and is not recorded.

What the Statutes Say

• North Carolina Gen. Stat. § 161-14 (Recording standards) – Sets formatting and indexing rules for instruments the Register of Deeds may accept.
• North Carolina Gen. Stat. § 105-228.30 (Real estate excise tax) – Imposes excise tax on conveyances with consideration, collected at recording.
• North Carolina Gen. Stat. § 132-1.10 (Protection of identifying information) – Limits Social Security numbers and similar identifiers in public records and permits redaction.

Analysis

Apply the Rule to the Facts: The deed transfer can be recorded without an EIN on the document. If the transaction is a sale, the other law firm likely requested a taxpayer ID to complete federal reporting (Form 1099-S) and their closing file. If a trust or estate is involved as a party, an EIN is typically used for that entity’s tax administration but it still does not appear on the deed. Share any taxpayer ID with the closing attorney through a secure method, not by text.

Process & Timing

1. Who files: Typically the settlement/closing attorney or a party to the deed. Where: The Register of Deeds in the North Carolina county where the land is located. What: A properly executed and notarized deed that meets recording standards, plus payment of recording fees and any excise tax due. When: Record promptly after execution to establish priority and complete the transfer.
2. The Register of Deeds reviews the document for format compliance and collects fees and any excise tax. If accepted, the deed is recorded, often the same business day.
3. For sales, the settlement attorney uses the seller’s SSN/EIN (via a W-9) to handle federal reporting (e.g., 1099-S) after closing; nothing about the SSN/EIN appears on the recorded deed.

Exceptions & Pitfalls

• Gift deeds and transfers with no consideration typically do not incur excise tax, but the deed still must meet recording standards.
• Do not include or write any SSN/EIN on the deed; registers may reject documents with personal identifiers, and identifiers in public records can create privacy risks.
• Entity parties should ensure the deed states the correct legal name and signer capacity (e.g., an LLC’s manager) to avoid rejection or title issues.
• Federal 1099-S reporting rules have limited exemptions; discuss any claimed exemption with the settlement attorney rather than omitting a taxpayer ID.

Talk to a Real Estate Attorney

If you’re dealing with a North Carolina deed transfer and unsure about EIN or recording requirements, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.