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

[Jay Goldstein]

Don’t have a ready cite for you, but I think the statute says REET is due 30 days after closing, and if not paid, then seller is liable for.

J

Jay A. Goldstein
[cid:AEF18ED8-6AEE-403C-99E7-30A379E62D84 at local]
1800 Cooper Point RD SW NO. 8  |  Olympia, WA 98502
Telephone 360.352.1970  |  Fax 360.357.0844 |  www.jaglaw.net<http://www.jaglaw.net/>
jay at jaglaw.net<mailto:jay at jaglaw.net>

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Mark Higgins
Sent: Thursday, July 02, 2015 9:51 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Form 21 - no express language re payment of REET

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<mailto: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<tel:%28509%29%20529-1529> voice
(509) 850-3515<tel:%28509%29%20850-3515> fax
LWLaw at my180.net<mailto:LWLaw at my180.net>
www.lwattorney.com<http://www.lwattorney.com>

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto: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<tel:509%20220%205810>


From: wsbarp-bounces at lists.wsbarppt.com<mailto: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<tel:206-625-0092>
fax 206-625-9040<tel:206-625-9040>



From: wsbarp-bounces at lists.wsbarppt.com<mailto: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<mailto: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<tel:206-625-0092>
fax 206-625-9040<tel:206-625-9040>


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