[WSBAPT] Taking Dad off Title to Real Property

[Jared E. Adams]

Hi All,

I have a real estate question fitting for a raining Friday afternoon. I met with a client who made a loan to his daughter for her to buy a house. He loaned her the full purchase price amount, so no other "lenders" are involved.

At closing, the escrow company prepared the deed with Dad and Daughter as tenants in common. Dad explained Daughter was to be sole owner, and the escrow company basically said, no problem, just file a deed afterwards to transfer your interest to your daughter. So, after the transaction closed, Dad contacted me to prepare the Deed of Trust securing the loan to Daughter, and to prepare the Quit Claim Deed to remove himself from the title.

My question is how to avoid the Real Estate Excise Tax when filing this Quit Claim Deed. I looked over the statute and the exemptions that mostly match the facts are WAC 458-61A-214 (Nominee) and -215 (Clearing or exiting title). I called the DOR and they suggested submitting this for a ruling.

I can't imagine this is a new or unique fact pattern. Has anyone else dealt with this? Is there a simple fix I am missing?

Thanks for your thoughts!

Jared



Jared E. Adams, JD, LL.M.

Condie & Adams, PLLC
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