[WSBARP] mobile home REET documentation?

[Eric Nelsen]

Title has not been eliminated in this case, but to my surprise, that doesn't appear to control which of REET or use tax applies. WAC 458-61A-105<http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-105>. There is a separate title certificate, but at escrow there will be a bill of sale and transfer of possession of the title certificate, and then my buyer is going to have to get title transferred at DOL. Seller does have the title certificate, fortunately.

The plan was to have a single purchase price for both land and mobile home, have escrow prepare the deed and REETA, and pay REET on the entire price. I just don't want my buyer to get caught having to pay an additional tax upon transferring the title certificate.

(The mobile home is essentially a teardown anyway so the buyer is not very concerned. It will probably get used for a few months and then torn down to make way for new construction.)

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Richard Holland
Sent: Monday, May 22, 2017 11:13 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] mobile home REET documentation?

I might be able to offer a bit of guidance depending on more details.  I am not even sure how you can pay sales tax on the sale of the mobile alone if you don’t have a title.  Who does the money go to and to what account would it be applied?

What was described could mean that the County views the home as real property already  (see RCW 82.45.032 (1) and (2))(I am betting) but that the title was never eliminated at DOL because there never WAS a title with DOL (and if there was they wouldn’t have it any longer anyway).  You get caught in this cycle where the County says it is real property (which technically they can’t unless they know it was taxed under RCW 82.08 or 82.12 but do regardless) yet the Title company says there’s been no elimination so you have to register it for a title just to eliminate it – which you can’t do unless you have the information to register it so that the State can take its taxes.  To register it, especially at this age, is going to be a hassle though the taxes actually shouldn’t be much – regardless of the rate.

It can’t have much “actual value” and if the MH is indeed personal property one could – in theory - sell ‘just’ the property and ‘abandon’ the mobile home like one leaves a lawn mower behind.  But, again, that leads to title insurance/lender issues in many cases or an understandably reticent Buyer.

In this case, I would pull the tax records, confirm that the County considers it real property, and submit an regular REETA with a “TGW Mobile Home xxx” in the legal and submit the Mobile REETA along with it.  IF the MH has its own personal property tax number and it isn’t considered real property by the County, that’s when you get stuck in the above odd loop.

I have been told that if the owner takes proof of payment of property taxes and a copy of the document that gave ownership to the DOL and/or the MH REETA, they will issue a title.  However, I was told that by a County Auditor, not the DOL, and have never actually attempted to confirm that.

Hope that made some sense.


Thanks,

Rich Holland

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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Kary Krismer
Sent: Monday, May 22, 2017 10:39 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] mobile home REET documentation?

Isn’t the issue whether a title elimination has been done on the mobile home?  If it has then it’s realty, not personalty.

Kary L. Krismer
206 723-2148

From: Eric Nelsen<mailto:Eric at sayrelawoffices.com>
Sent: Monday, May 22, 2017 10:01 AM
To: WSBA Real Property listserve (wsbarp at lists.wsbarppt.com)<mailto:wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] mobile home REET documentation?

Folks--In order for sale of a mobile home to pay only Real Estate Excise Tax at 1.78% (as opposed to sales/use tax at 9.5%), per WAC 458-61A-105<http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-105> one needs to confirm that the mobile home "has been subject to retail sales or use tax during a previous sale."

I have a transaction with a 1974 mobile home on the property, on blocks, with utilities serving it, so I think it pretty clearly should be subject to REET rather than sales tax – but there is no way the seller will have documentation showing payment of sales or use tax during a previous sale.

Does anyone know if the treasurer even requires specific documentation, and if so, what would be sufficient? Would an affidavit by the seller be sufficient?

Thanks in advance,

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.


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