[WSBARP] Requirements for recording transfers by operation of law

[Bickel, Dwight]

John McCrady asked what I meant when I replied that the clerk's comments to Mike Winslow were not correct that transfers by operation of law must be recorded.

The transfers of title to real property that occur by operation of law due to the effect of death of the owner, whether due to the effect of a Will, the effect of intestate succession, the effect of joint tenancy, the effect of community property or the effect of a Transfer on Death Deed, are effective and complete though no document is recorded.

Similarly, the transfers of title to real property that occur by operation of law due to the effect of a corporate merger, the effect of a divorce decree, the effect of a partition action, or the effect of a quiet title Order, are effective and complete though no document is recorded.

What is new* is that the Dept. of Revenue now requires excise tax affidavits for transfers by operation of law, even if the parties do not desire to record anything. Until the statutory revisions, a few counties were also requiring payment of excise tax for these transfers that were clearly exempt, unless the parties had the precise documentation required by the statute. I think we have solved that issue.

The Treasurers inisisted that the amended statute would require recording any of the documents as listed in that statute that are required documentation of the transfer by operation of law to claim exemption from the real estate sales tax.

* A change was made February 28, 2014 to WAC 458-61A-303<http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A&full=true#458-61A-303> [the regulation that explains when a real estate excise affidavit is required]. It was not made due to a change in the substantive law.

WAC 458-61A-303 Affidavit. (1) Introduction. This section explains
when a real estate excise tax affidavit is required for the
((conveyance)) transfer of ((an interest in)) real property. See WAC
458-61A-101 for procedures pertaining to transfers and acquisitions of
a controlling interest in an entity owning real property in the state
of Washington. (2) Affidavit required. In general, an affidavit must be filed
when ownership or title to real property transfers as evidenced by
conveyance, deed, grant, assignment, quitclaim, or any other document
effectuating the transfer including, but not limited to, the following:
(b) ((Conveyance)) Transfer resulting from a court order;
(g) ((Conveyance)) Transfer to an heir in the settlement of an
estate;

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