[WSBARP] REET Supp. Excise tax statement can't be signed by P of A?

Wed Aug 5 15:05:27 PDT 2020

Yikes, I see my initial reply was entirely unhelpful -- my apologies. I missed that it was the supplemental statement re gifts that they declined. Moving too quickly here.

I have always thought the REETA regulation specifying that an agent may sign means agents even beyond those formally appointed under a POA may sign - such as an attorney or other person familiar with the facts stated in the REETA. (I have not been asked to submit a POA when I have (rarely) signed only the REETA as an attorney, for example.) Perhaps I am wrong and have "gotten away with it" a couple times.

But, regardless, insofar the supplemental statement regulation does not authorize an agent, then I think that should be read to mean it could not be signed by a non-POA agent like an attorney or other person familiar with the facts. It must be signed by the grantor/grantee - or an agent under a valid POA, or a court-appointed conservator holding an order approving the gift (if such a thing exists), or another person authorized by applicable law to act on the grantor's/grantee's behalf.

But neither regulation should reasonably be read to mean that the supplemental statement could not be signed by the grantor's or grantee's agent under a valid POA signed by grantor/grantee. Of course, the POA would have to include the power to gift, etc., but that is required for the deed itself.

Otherwise, the regulation is likely in conflict with the POA (or other) statutes and thereby invalid.

Anyhow, this email is probably just as unhelpful as the first. Kudos to those who got it right the first time! ;)

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com
________________________________
From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> on behalf of Josh Grant <jgrant at accima.com>
Sent: Wednesday, August 5, 2020 1:34:43 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] REET Supp. Excise tax statement can't be signed by P of A?

Thanks Claudia that is helpful.

458-61A-201(5)(a)    The statement must be signed by both the grantor and the grantee.

 That was probably meant only to say that the signing by one of the parties to a gift wasn't sufficient to sign a Supp. statement.  Literally taken is being interpreted strictly.

That is probably where they got that.  It's not worth the time to  contest but my hunch is that "signed by the grantor" also means  that a 'grantor' includes an attorney in fact under the POA statute.

This is a treasurer widely know to be difficult.  Anyone recording gift deeds in Grant County are warned.

Josh

Joshua F. Grant
[advocates]
P. O. Box 619
Wilbur, WA 99185
509 647 5578

From: Claudia A Gowan
Sent: Wednesday, August 05, 2020 1:09 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] REET Supp. Excise tax statement can't be signed by P of A?

Hi, Josh, it does seem odd. Maybe the County Treasurer is interpreting the rules strictly? The below clearly states that for REET purposes, the REETA can be signed by an agent. However see 201(5)(a) below, the supplemental statement is to be signed by grantor and grantee. IMHO, the Treasurer's office is interpreting the rules too strictly. Common sense suggests that the agent could also sign the supplemental statement to the affidavit in compliance with the purposes of the chapter.

458-61A-102(1)

Definitions.

For the purposes of chapter 458-61A WAC, the following definitions apply unless the context requires otherwise:

(1) "Affidavit" means the real estate excise tax affidavit provided by the department for use by taxpayers in reporting transfers of real property. Both the seller/grantor and the buyer/grantee, or their agents, sign the affidavit under penalty of perjury includes the form used to report to the department transfers and acquisitions of a controlling interest in an entity owning real property in this state under WAC 458-61A-. The term also 101.

458-61A-201(5)(a)

(5) Documentation.

(a) A completed real estate excise tax affidavit is required for transfers by gift. A supplemental statement approved by the department must be completed and attached to the affidavit. The supplemental statement will attest to the existence or absence of underlying debt on the property, whether the grantee has or will in the future make any payments on the debt, and whether a refinance of debt has occurred or is planned to occur. The statement must be signed by both the grantor and the grantee.

Best, Claudia

Claudia A. Gowan

Claudia A. Gowan, PLLC

1001 Fourth Avenue, Suite 3200

Seattle, WA 98154

(206) 443-2733 (T)

claudia at cagowanlaw.com

www.seattletrustsandestates.com<http://www.seattletrustsandestates.com/>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Wednesday, August 05, 2020 11:51 AM
To: wsbar <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] REET Supp. Excise tax statement can't be signed by P of A?

My client as P of A for her mom signed a gift deed for the grantor. County Treasurer returned everything including the  supplemental statement REET form which accompanied the gift deed .  With the notation that a P of A can not sign the supplemental statement REET form !!  Where did that come from?  So a P of A can sign a deed conveying real property but can't the supplemental statement REET form which just says it's a gift and there is no loan on the property. Seems odd to me.

(They also said the Auditor needed 2 checks one for the $10 on the REET form and the rest for the recording fee.)

Josh

Joshua F. Grant
[advocates]
P. O. Box 619
Wilbur, WA 99185
509 647 5578

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