[WSBARP] Form 21 - no express language re payment of REET
Lenard
lwlaw at my180.net
Thu Jul 2 09:36:12 PDT 2015
I never use form 21 but my experience has been like Howard's. The tax is
imposed on the seller so that is the default but the parties can negotiate
otherwise and often do.
Lenard L. Wittlake, PLLC
Attorney & Counselor at Law
22 E. Poplar Street, Suite 200
P.O. Box 1233
Walla Walla, WA 99362
(509) 529-1529 voice
(509) 850-3515 fax
<mailto:LWLaw at my180.net> LWLaw at my180.net
<http://www.lwattorney.com> www.lwattorney.com
From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Howard Herman
Sent: Wednesday, July 01, 2015 10:12 PM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Form 21 - no express language re payment of REET
It is often a matter of negotiation when trying to put a deal together. I
have seen the purchaser pay the tax many times. "Purchaser to pay all
closing costs." A real anxious buyer may offer to pay some or all of the
broker's commission. Money is fungible.
Howard Herman
Herman Herman & Jolley
509 220 5810
From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Wednesday, July 01, 2015 3:37 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Form 21 - no express language re payment of REET
I think I phrased my question rather badly.
I wonder why the PSA doesn't say, "Seller pays real estate excise tax." I
know it's required by law anyway, but there are often statements in a
contract that are redundant with legal requirements....so is there some
reason in this case to avoid saying it in the contract? Or is it just as a
case of "everybody knows who pays it so we don't mention it in the PSA?"
Sincerely,
Eric
Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA 98101-2837
phone 206-625-0092
fax 206-625-9040
From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Wednesday, July 01, 2015 2:20 PM
To: WSBA Real Property listserve (wsbarp at lists.wsbarppt.com)
Subject: [WSBARP] Form 21 - no express language re payment of REET
I've noticed this before, but now I'm motivated to ask about it. NWMLS Form
21 -- the standard residential PSA -- does not expressly say that Seller
shall pay the real estate excise tax. It is in fact Seller's tax burden per
WAC 458-61A-301(1)(b)
<http://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-301> , and I know
that's how it gets paid as a matter of course.
Now a client is wondering why it's not expressly stated. Is there a reason
why it's not stated explicitly in the PSA?
Sincerely,
Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA 98101-2837
phone 206-625-0092
fax 206-625-9040
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