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

[Bryce Dille]

The DOR's position has not changed and there is no excise tax on the "Assignment Fee" paid to transfer the P and S agreement to new buyer as the transfer is not  an interest in real property but only the right to purchase it.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Dwight Bickel
Sent: Thursday, December 19, 2019 1:04 PM
To: WSBA Real Property Listserv <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)?

I am quite interested to hear recent opinions and actions by the Department of Revenue regarding this frequently-used procedure. It was my opinion, the last time I researched it, that the DOR agreed there was no real estate excise tax due from either party on the amount of the "boot," the amount paid by the assignee ultimate buyer to the assignor, the initial contract purchaser. The real estate excise tax was calculated based upon the price paid to the real estate owner, the seller, and the deed is that seller to the assignee. Literally, there is no sale of real property from the assignor to the assignee. That sale is an assignment of an executory contract, not a sale of real property. Has that DOR position changed?

Dwight A. Bickel
Washington Title Professional
dwightbickel at hotmail.com<mailto:dwightbickel at hotmail.com>
www.linkedin.com/in/dwightbickel<http://www.linkedin.com/in/dwightbickel>
http:/www.titleadvisor.com
206-484-1976


________________________________
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 <dougowens at seattlerelawyer.com<mailto:dougowens at seattlerelawyer.com>>
Sent: Thursday, December 19, 2019 12:25 PM
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)?

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.

--
Robert R. Rowley
Attorney & Counselor At Law
p:
509.252.5074  m: 509.994.1143
f:
509.928.3084
a:
7 S Howard St, Ste 218, Spokane, WA 99201
w:
rowleylegal.com<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Frowleylegal.com%2F&data=02%7C01%7C%7C8535ef9b01f6454e299808d784c2ae91%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637123844000814925&sdata=d5NKQzwrmA5cBNxyAEozRS%2BnyMzDWhfBKOtSNWTE1Ms%3D&reserved=0>  e: rob at rowleylegal.com<mailto:rob at rowleylegal.com>
[http://cdn2.hubspot.net/hubfs/184235/dev_images/signature_app/facebook_sig.png]<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.facebook.com%2Frowleylegal%3F&data=02%7C01%7C%7C8535ef9b01f6454e299808d784c2ae91%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637123844000834935&sdata=hS2kirMLnRSFIHFLWTMJE8KvrXbEHDjH0ndRUL0Gdv8%3D&reserved=0>  [http://cdn2.hubspot.net/hubfs/184235/dev_images/signature_app/twitter_sig.png] <https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftwitter.com%2FROBERTRROWLEY&data=02%7C01%7C%7C8535ef9b01f6454e299808d784c2ae91%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637123844000844946&sdata=zTh%2FvxfM31NaDX93EhkB7Yc77BSelyNzWqxcoHeUS%2Bw%3D&reserved=0>   [http://cdn2.hubspot.net/hubfs/184235/dev_images/signature_app/linkedin_sig.png] <https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.linkedin.com%2Fin%2Frob-rowley-b2017211%2F&data=02%7C01%7C%7C8535ef9b01f6454e299808d784c2ae91%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637123844000854957&sdata=vMPNZWMT6wZTWZ0Z4eVR03ljPjIdZIlD9xoRW2%2F33go%3D&reserved=0>

Practice concentrated on business, real estate and general legal matters in Washington and Idaho. NOTICE: The contents of this message and any attachments may be protected by the attorney-client privilege, work product doctrine or other applicable protections. If you are not the intended recipient or have received this message in error, please notify the sender and promptly delete the message. Thank you for your assistance. DISCLAIMER: You should recognize that responses provided by e-mail means are akin to ordinary telephone or face-to-face conversations and do not reflect the level of factual or legal inquiry or analysis which would be applied in the case of a formal legal opinion. A formal opinion may very well reach a different conclusion.
***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***

_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com<mailto:WSBARP at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbarp<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fmailman.fsr.com%2Fmailman%2Flistinfo%2Fwsbarp&data=02%7C01%7C%7C8535ef9b01f6454e299808d784c2ae91%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637123844000864962&sdata=2%2Bn%2BUvNIuD%2FqPpSKysnNHMYSyM5fwO0Li3Qd2GdXxC4%3D&reserved=0>
***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***

_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com<mailto:WSBARP at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbarp<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fmailman.fsr.com%2Fmailman%2Flistinfo%2Fwsbarp&data=02%7C01%7C%7C8535ef9b01f6454e299808d784c2ae91%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637123844000874973&sdata=Svpw5hTn3X3n2RqtAFaDfkjDur9kxFSlDxT0DD0joV0%3D&reserved=0>

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20191219/e036e5e7/attachment.html>