[WSBARP] Excise tax NWMLS Form

[Kary Krismer]

I'm not sure why neither 21 or 28 mention REET, but they don't. And 
other than FIRPTA, the forms also don't mention who has to pay the 
seller's income tax either!  I would agree that RCW 82.45.080 controls.

But beyond that, while it is possible to contractually shift the burden, 
it is not typically in the seller's interest to do that in SFR 
transactions.  It would limit the buyer pool because you would 
effectively require that the buyers have 1.78% more in down payment than 
whatever their lender program requires.

Also, it's not like a buyer who is willing to offer $700,000 for a house 
is going to be willing to offer $712,460 just because the seller wants 
them to pay REET.  Instead they will likely only offer $687,757.91, 
assuming math skills, or $687,540 if their math skills are lacking.

Finally, whenever this topic comes up I usually mention that I've only 
seen a couple of sellers require the buyer pay REET, and those have been 
small time bank entities on their REO transactions.  I then mention that 
banks are hardly smart entities when it comes to selling property and 
getting the highest dollar amount.  ;-)

Kary L. Krismer
John L. Scott, Inc.
206 723-2148

On 8/14/2019 8:42 AM, nestor at pplsweb.com wrote:
>
> I now have a Seller claiming she does not have to pay excise tax and 
> that it’s the Buyer’s responsibility because it is not stated in the 
> NWMLS Form 21. I reviewed Forms 21 and 28 and nowhere does it state 
> that Seller pays the excise tax.  The contract is silent on the 
> matter. I have seen contracts that specifically shift the burden to 
> Buyer.
>
> Does RCW 82.45.080 mandate that Seller pay when the contract is silent?
>
> Nestor Gorfinkel, Attorney at Law
>
> Licensed in Washington & Florida
>
> Florida Civil-Law (International) Notary
>
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