[WSBARP] Form 21 - no express language re payment of REET

[Mark Higgins]

It is my understanding that, because the tax is the seller's obligation, if
the buyer pays the tax it is treated as additional sales price, causing
another tax calculation and increased tax.​

On Thu, Jul 2, 2015 at 9:36 AM, Lenard <lwlaw at my180.net> wrote:

> 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
>
> LWLaw at my180.net
>
> 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
> <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
> <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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> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp
>



-- 
Mark T. Higgins
Mark T. Higgins, P.C.
P.O. Box 57
Darrington, WA 98241
206-491-2420
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