[WSBARP] Background of Need for Real Estate Excise Tax Affidavit

[Dwight Bickel]

If the quiet title decree is filed in the Superior Court located in the same county as the property, there is nothing accomplished by recording the decree.

Presuming you don’t have to record the decree, you still may be required to complete and deliver a real estate excise tax affidavit. If the decree transfers “ownership or title to real property,” then WAC 458-61A-303 (2) states you must complete a REET affidavit, which will claim exemption from the tax.

The REET affidavit is not required just because there is a decree. Many quiet title decrees do not transfer ownership. For example, a decree terminating a mortgage does not change ownership. A decree establishing an easement does not change ownership. A decree ordering a sale of property owned by tenants in common does not change ownership.

Arguably, a decree confirming adverse possession does not legally transfer ownership. However, DOR will say it does because its opinions and interpretation rely entirely on the recorded documents. A decree that terminates a claim of ownership that is recorded will require a REET affidavit.

A decree entered in a probate that confirms intestate inheritance by two children also does not transfer ownership. However, RCW 82.45.197 (1)(g) specifically requires a REET affidavit and the recording of all documents stated by the statute, (2) requires recording of all documents submitted with the REET affidavit to justify the exemption, and (3)(b)(vi) requires recording of anything else the DOR might request.

But many county employees at their recording office would not expect a REET unless there is a DOCUMENT that is to be recorded. Most are not aware that title to real property can be transferred without a recording. Remember, the DOR may make the rules, but that person interprets the rules and they often choose not to follow their own rules. So, Greg, my answer is that you ask that person and do what that person requires.

Dwight A. Bickel
Real Property Title Advisor
Washington Title Professional
Dwight at DwightBickel.com<mailto:Dwight at DwightBickel.com>
https:/dwightbickel.com

On Behalf Of Gregory L. Ursich

So Dwight: If we now have a quiet title judgment after an adverse possession lawsuit, we need to file a REETA when the judgment gets recorded?
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