[WSBARP] Nominees; WAC 458-61A-214; Flyhomes

Tue Mar 9 19:04:04 PST 2021

Does the ultimate owner receive a title policy insuring against the potential excise tax?

Scott Osborne

scott.osborne2 at gmail.com
scott.osborne at foster.com
206 447-6293 - Direct Line
206 359-5454 Cell

Sent from my iPhone

> On Mar 9, 2021, at 9:24 PM, Samuel M. Meyler <samuel at meylerlegal.com> wrote:
> 
> 
> Robert,
>  
> Yes, that’s a concern and why I am asking for examples of transaction docs that other have used. 
>  
> Does the issue with DOR that you are dealing with relate to the use of a nominee to purchase property and the exemption under WAC 458-61A-214?  It would be good to know what issues DOR has with such transactions. 
>  
> Sam
>  
>  
> Samuel M. Meyler
> Meyler Legal, PLLC 
> 1700 Westlake Ave. N., Ste. 200
> Seattle, Washington 98109
> Tel:  206.876.7770
> Fax:  206.876.7771
> Email:  samuel at meylerlegal.com
>   
> NOTICE:
>  
> This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. The information is intended to be for the use of the individual or entity named above.  If you are not the intended recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited.  If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments.  Thank you.
>  
> From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Robert R. Cole
> Sent: Tuesday, March 9, 2021 5:44 PM
> To: wsbarp at lists.wsbarppt.com
> Subject: Re: [WSBARP] Nominees; WAC 458-61A-214; Flyhomes
>  
> Just because the treasurer allows it doesn't mean it works.  I had one that DOR notified us 2 years later that they had problems.  Have to do all the details. 
> 
>  
> Very Truly Yours,
> Robert R. Cole
> Law Office of Cole & Gilday, P.C.
>  
> 10101 - 270th St. NW
> Stanwood, WA 98292
> (360) 629-2900 (Telephone)
> (360) 629-0220 (Fax)
>  
> This message contains confidential and privileged information that is intended only for the named recipient(s).  Unless you are the named recipient or authorized agent thereof, you are prohibited from reading, copying, distributing or otherwise disseminating such information.  If you receive this communication in error, please notify the sender immediately.
>  
> On 3/9/2021 5:05 PM, Samuel M. Meyler wrote:
> Thanks, Marc.  Yes, I have done that and seen what they attach to their REETAs.  I am looking for some other examples as well. 
>  
> They have definitely come a long way in a short period of time.  They have a good amount of investment to back them up.  It’s a very interesting model. 
>  
>  
> Samuel M. Meyler
> Meyler Legal, PLLC 
> 1700 Westlake Ave. N., Ste. 200
> Seattle, Washington 98109
> Tel:  206.876.7770
> Fax:  206.876.7771
> Email:  samuel at meylerlegal.com
>   
> NOTICE:
>  
> This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. The information is intended to be for the use of the individual or entity named above.  If you are not the intended recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited.  If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments.  Thank you.
>  
> From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of marc holmeslawgroup.com
> Sent: Tuesday, March 9, 2021 4:51 PM
> To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> Subject: Re: [WSBARP] Nominees; WAC 458-61A-214; Flyhomes
>  
> I am familiar with FlyHomes and have been very impressed with how far they’ve come since I first met the founders when they were just getting started. 
>  
> You can probably find a home they’ve sold in King County on their website and then search the county recorder’s website for the excise affidavits filed in that transaction.
>  
>  
>  
> Marc Holmes, JD
> Holmes Law Group PLLC
> 2303 W. Commodore Way, Suite 306
> Seattle, WA 98199
> marc at holmeslawgroup.com
> (206) 357-4224 (ofc)
> (206) 849-0853 (cell)
>  
> From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Samuel M. Meyler
> Sent: Tuesday, March 9, 2021 6:26 PM
> To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
> Subject: [WSBARP] Nominees; WAC 458-61A-214; Flyhomes
>  
> Listmates,
>  
> WAC 458-61A-214 provides an excise tax exemption for the subsequent transfer of property by a “nominee” to a third-party (the intended buyer).  My understanding is that FlyHomes uses this exemption to purchase properties for cash on behalf of its clients and subsequently sell the property to the client, without having to pay excise tax on the subsequent transfer.
>  
> For those who are unfamiliar, FlyHomes is a real estate firm with a lending arm that allows its buyer-clients to present an “all cash offer” by purchasing the home for the client for all cash and then selling it to the client, allowing the client to essentially present an extremely competitive, all-cash offer.  This is not a promo for FlyHome’s services… I just find it to be an interesting model and I am researching it.
>  
> Is anyone familiar with this type of transaction and how to document it?  I know that the WAC provides examples and “explains” what documentation is necessary, but I am wondering if someone may have actually prepared materials documenting a transaction involving a nominee that have been accepted when recording and if you would be able to share those materials for review.  TIA
>  
> Sam
>  
>  
>  
> Samuel M. Meyler
> Meyler Legal, PLLC 
> 1700 Westlake Ave. N., Ste. 200
> Seattle, Washington 98109
> Tel:  206.876.7770
> Fax:  206.876.7771
> Email:  samuel at meylerlegal.com
>   
> NOTICE:
>  
> This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. The information is intended to be for the use of the individual or entity named above.  If you are not the intended recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited.  If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments.  Thank you.
>  
> 
> 
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