[WSBARP] Excise on Assignments (458-61A-104) & Assignment of Sale Agreements By Only Licensed Brokers (RCW 18.85)?

[Doug Owens]

Bryce you raise an interesting point in the hypothetical situation in which the contract is somewhat illusory from the seller’s point of view.  I have not seen any contracts with such an escape clause.  I agree under such facts the DOL might have a case.  Yours truly, Doug Owens

On Dec 19, 2019, at 11:59 AM, Bryce Dille <Bryce at dillelaw.com<mailto:Bryce at dillelaw.com>> wrote:

I think DOL might  have a case as to someone who was in the business of tying up multiple properties and never intending to close but only  to market his buyers interest and get assignment fee and if person couldn’t find a buyer for buyer’s  interest had the right to terminate the deal at no cost to the person.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Doug Owens
Sent: Thursday, December 19, 2019 11:31 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Excise on Assignments (458-61A-104) & Assignment of Sale Agreements By Only Licensed Brokers (RCW 18.85)?

Dear Rob, about nine years ago the DOL put out “guidance” on this point and it has been of concern to real estate investors since then.  I disagree with the department because a licensed broker is not a party to the underlying transaction but the buyer who assigns his or her contract to someone else is.  This is the guidance that the DOL put out which I understand will not go to the listserv.  Yours truly, Doug Owens


On Dec 19, 2019, at 10:46 AM, Rowley, Rob <rob at rowleylegal.com<mailto:rob at rowleylegal.com>> wrote:

Any experience with DOR or DOL taking the position that real estate investors who assign purchase contracts must be licensed real estate brokers (RCW 18.85)?  I have seen a recent inquiry by DOL of one of my real estate investor clients. Clients who are in the business of getting property under contract and then assigning the buyer's interest for consideration that is typically only paid at the time of closing on the settlement statement.  One of the complaints was by a disgruntled local licensed real estate broker who is a competitor.

Also, it has always been my understanding that under WAC 458-61A-104 as to the assignment consideration the seller does not pay excise but the purchaser does pay.

Wanting to know what is going on statewide (if any) on these issues.

Thank you and Merry Christmas.

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Robert R. Rowley
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