[WSBARP] Recording Standards Commission (RSC)

[Craig Gourley]

HI Chris and thank you for takin on this role.   We can say that 99.9 percent of all issues causing rejection are with the excise tax affidavit.   The clerks demand that we change the citations to ones that are clearly erroneous, they hand change the WAC codes to different ones over the signature of my client's sworn affidavit.  Basically, forcing their erroneous interpretations of the law over the opinion of the licensed attorney filling it out.

Nightmares?  We do a lot of 1031 exchanges and those have very strict time lines. The replacement property must close by a certain date ( typically 180 days from original sale) or the exchange fails. There are tens of thousands and in some cases millions of tax dollars at risk if the deadlines are not met. In many cases, and for various valid reasons the clients wait to the last minute to close.  We have had several instances with the excise wrongfully rejected  that nearly caused the deals to be disqualified.   Phone calls and threats of litigation and begging got us out of the mess.  Out of control excise clerks are the number one issue with recording.   Craig

GOURLEY LAW GROUP
THE EXCHANGE CONNECTION
SNOHOMISH ESCROW
P.O. Box 1091
Snohomish, WA 98291
PH:  (360) 568-5065 (800) 291-8401
Fax: (360) 568-8092

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Chris B
Sent: Thursday, April 7, 2022 11:03 AM
To: wsbarp at lists.wsbarppt.comthe<mailto:wsbarp at lists.wsbarppt.comthe> citation
Subject: [WSBARP] Recording Standards Commission (RSC)

As some of you may recall, I am the WSBA designee to serve on the Recording Standards Commission (ESC).  As part of that service, I also sit on the Rejection Standards Workgroup. These groups are mostly made up of county auditors/recorders, but there is also representation from title and escrow companies.  I am the sole representative of the legal community.

The goal of these groups is to standardize recorded document acceptance/rejection standards.

I have been charged with reporting back from attorney practitioners on the impacts of recorded document rejections. So, please pass along your "horror stories." If you wish, you can reply to me anonymously.  The main goal is to report back to the workgroup on what sorts of problems (common or otherwise) are being experienced, and the impacts on consumers resulting from those rejections.

Please note that while excise tax (REETA) is no doubt a big source of frustration, the workgroup is mostly interested in the documents being recorded, as opposed to REETA issues.

Please note our new website and email address as of 1/1/21.

Chris Benis
First Avenue Law Group, PLLC
321 First Avenue West, Seattle, WA  98119
206.447-1900 office - 206.447.9075 fax - www. firstavenuelaw.com

This message contains information that may be CONFIDENTIAL AND PRIVILEGED.  Unless you are the addressee (or authorized to receive for the addressee), you may not use, copy or disclose to anyone the message or any information contained in the message.  If you have received the message in error, please advise the sender by reply e-mail chrisb at firstavenuelaw.com<mailto:chrisb at firstavenuelaw.com>, and delete this message. Thank you very much.

To comply with recent IRS rules, we must inform you that this message, if it contains advice relating to federal taxes, was not intended or written to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed under federal tax law.  Under recent IRS rules, a taxpayer may rely on professional advice to avoid federal tax penalties only if that advice is reflected in a comprehensive tax opinion that conforms to stringent requirements under federal law.  Please contact me if you would like to discuss our preparation of an opinion that conforms to these new rules.

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