[WSBARP] Nominees; WAC 458-61A-214; Relocation Companies

[Kary Krismer]

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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