[WSBARP] Yet another County recording issue

Fri Aug 21 10:54:01 PDT 2020

Thank you and I am aware of the need for someone to pay the tax or continue the designation. The question here is that this is a foreclosure sale with a trustee's deed so no "seller" to pay the tax. Are you suggesting that the lender is required to pay the taxes out of auction proceeds? In a normal trustees sale they record the deed basically subject to any unpaid tax. In this case they are not being allowed to record. I think the best answer as suggested by a previous post is to deliver the deed to the successful bidder and let them sort it out.  Thanks to all.

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> on behalf of Tom Westbrook <tjw at w3net.net>
Sent: Friday, August 21, 2020 10:21:20 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Yet another County recording issue

Hello All,

It is an RCW that has been around many years. Any time you sell or transfer land that has been classified as open space, timberlands or agricultural use you need to pay attention to either RCW 84.33 or 84.34. It also applies to property of historical significance under RCW 84.26. The program allows the Assessor to assess at a current use rate that is a lower value than FMV thereby significantly reducing the taxes paid annually, but upon sale the seller must pay what is called the compensating tax which is a look back over the past 7 years. Look at RCW 84.34.108 and specifically at subsection (a) The amount of additional tax is equal to the difference between the property tax paid as "open space land," "farm and agricultural land," or "timberland" and the amount of property tax otherwise due and payable for the seven years last past had the land not been so classified; and b) The amount of applicable interest is equal to the interest upon the amounts of the additional tax paid at the same statutory rate charged on delinquent property taxes from the dates on which the additional tax could have been paid without penalty if the land had been assessed at a value without regard to this chapter;

Take time to review the REET provision below that should have been read by whoever filled out and/or signed the REET. You should also review the related RCWs:

Is this property designated as forest land per chapter 84.33 RCW?

Is this property classified as current use (open space, farm and

agricultural, or timber) land per chapter 84.34 RCW?

Is this property receiving special valuation as historical property

per chapter 84.26 RCW?

If any answers are yes, complete as instructed below.

(1) NOTICE OF CONTINUANCE (FOREST LAND OR CURRENT USE)

NEW OWNER(S): To continue the current designation as forest land or

classification as current use (open space, farm and agriculture, or timber) land,

you must sign on (3) below. The county assessor must then determine if the

land transferred continues to qualify and will indicate by signing below. If the

land no longer qualifies or you do not wish to continue the designation or

classification, it will be removed and the compensating or additional taxes will

be due and payable by the seller or transferor at the time of sale. (RCW

84.33.140 or RCW 84.34.108). Prior to signing (3) below, you may contact

your local county assessor for more information.

This land does does not qualify for continuance.

DEPUTY ASSESSOR DATE

Any attorney that engages in the sale or transfer or vacant real property should be award of these provisions.

Sincerely,

Tom

Thomas J. Westbrook

Attorney at Law

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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 Jeanne Dawes
Sent: Friday, August 21, 2020 9:50 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Yet another County recording issue

In Spokane County, the auditor will not record a deed for property that is in open space unless the assessor has either approved a continuance of the open space (which is applied for by the buyer), or the property is pulled from open space and the compensating tax paid.  The parties need to agree as to who pays the compensating tax, if the exemption is being terminated.  It’s not always the seller.  If the buyer is going to discontinue the use for which the open space exemption is granted, it may be the buyer to pays the compensating tax.  I believe there is a WAC regulation applicable to all counties.  Don’t have the cite off the top of my head.

Jeanne

Jeanne J. Dawes

Attorney at Law

Gore & Grewe, P.S.

103 E. Indiana Avenue, Suite A

Spokane, WA 99207-2317

Voice:  509-326-7500

Fax:      509-326-7503

jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>

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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Craig Gourley
Sent: Thursday, August 20, 2020 3:44 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Yet another County recording issue

Listmates.  Your wisdom is sought.  Facts – trustee sells property at auction.  Buyer pays trustee.  Trustee prepares trustee’s deed but county refuses to record it because land is open space and County is demanding signing of a continuation of open space use or payment of all the back taxes as a condition of recording.  Lender wants their money but trustee can record the deed.

Seems to me that the deed should be recorded and County can attach their lien for taxes.  The only requirement to pay taxes as a condition of recording that I am aware of is when dividing land, like a BLA.   Thoughts ?  I am guessing that once again the treasurer is exceeding their authority.

Gourley Law Group

Snohomish Escrow

The Exchange Connection

1002 10th Street / PO Box 1091

Snohomish, WA 98291

360.568.5065

360.568.8092  fax

Craig at glgmail.com<mailto:Craig at glgmail.com>

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