[WSBARP] Nominees; WAC 458-61A-214; Relocation Companies
Kary Krismer
Krismer at comcast.net
Wed Mar 10 17:54:55 PST 2021
I was only intending to apply it by analogy, but thinking it through in
my second email, the relocation company on a relocation sale is not
connected to the buyer, so I think that is the distinction. They simply
are not a nominee of the buyer in any sense of the term, so they
probably always pay excise tax twice.
Looking at Flyhome's website they have two different programs, but the
details of the programs are not provided and the FAQ page seems to
conflict with this page. https://www.flyhomes.com/buy But as that
linked page describes their "Guaranteed Offer" program it seemingly
would make them nominees in the traditional sense (subject to meeting
all DOR's qualifications--with funds coming from the nominee being an
issue as discussed by others) . The "Cash Offer" program doesn't have
enough details as to structure understand it sufficiently.
Rather than excise tax I'm wondering how they're dealing with appraisal
issues, particularly on their "cash offer" program as described which
requires a later loan. In this crazy market many houses are going for
more than 10% of list price and thus appraising can be an issue absent
additional buyer funds. Although on the other hand it's probably not a
problem with houses appreciating 10% in value ever 30 days. ;-)
Kary L. Krismer
206 723-2148
On 3/10/2021 4:12 PM, Dwight Bickel wrote:
>
> Kary, the relocation example is not related to the FlyHomes example.
> It seems we have started our own thread.
>
> The DOR has been consistent that the second step, from Relocation
> Company to unrelated Purchaser, is not exempt as a nominee exception.
> The DOR won’t allow the exemption even where the Relo Co takes a
> signed deed from Seller, with a blank grantee, then the Relo Co fills
> in the grantee “as agent.” While I could argue with the DOR, I learned
> several decades ago that is not productive.
>
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