[WSBARP] complication in transferring RP to Trust

[Paul Neumiller]

Thank you for your answer.  Very useful, as always.

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Bickel, Dwight
Sent: Thursday, May 18, 2017 9:21 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] complication in transferring RP to Trust

The WAC requiring an excise tax affidavit for all transfers by operation of law is relatively new [see WAC 458-61A-303 (Feb 28, 2014)]. Fortunately for professionals engaged in real property transactions, the local county recorders are not uniformly enforcing compliance. But some people acting as the DOR agent for excise tax are requiring an affidavit for any change from the prior records to the present grantor, regardless of the time. You can thank Rep. Terry Nealey and the Washington Land Title Ass’n that the revisions to RCW 82.45.197 [HB 2539 in 2016] require no fine or penalty for failure to file that excise tax affidavit.

So, it is possible in the posted question case for a very old divorce that the recorder will not allow recording of the next deed [B to B’s Trust] without an excise tax affidavit showing the transfer by operation of the divorce from A&B to B. Still, nothing would be required from that ex-husband, and of course no tax is due since that was not a taxable sale.


From: Paul Neumiller

Dwight, as another poster has observed, the WACs seem to require a Real Estate Excise Tax Affidavit for this type of transaction and, I imagine, this is not followed in a great many divorces.  What has been your experience with the failure to file the REET?  Would a county really allow a divorcee to file a REET 30 years after the fact AND who is going to sign for the party giving up the property?
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