[WSBARP] removal from open space tax status

[Bryce Dille]

It is hard to believe that this wasn't discussed between the buyer and the seller and if there was a real estate agent involved that agent should have brought it to the attention of whoever the agent represented that this was something that should be addressed in the agreement. The assessment that is due closing is the current taxes and if the exemption is not maintained then the taxes deferred and penalty will then be assessed against the property which will at this time be owned by the buyer and therefore the buyers responsibility since the buyer is the one that elected not maintain the exemption status. I had a case like this years ago and the court ruled that the buyer was well aware by looking at the title report that it was an exempt status and therefore was aware that if you did not maintain it the back taxes and penalties would be assessed against the property and he would be responsible to pay it since no agreement had been reached with the seller the sellers only obligation under the terms of the contract was to pay the taxes that had been assessed up to the date of closing and these taxes were all assessed after closing when the assessor discovered the exemption was not being maintained.

Bryce H. Dille
Dille Law, PLLC
2010 Caton Way SW Ste. 101
Olympia, WA 98502
Office: 360-350-0270
Cell: 253-579-5561

** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**




[R_Alan_Swanson-WH-200]

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Craig Gourley
Sent: Friday, December 29, 2023 12:49 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] removal from open space tax status

Listmates, A property is in farm land  tax status and is sold.  The new owner is not going to continue the farm classification.  The agreement is silent on who pays the back taxes to change the status.  There is the language that says " assessments" due at closing are paid by seller and arguably the back tax is an assessment. Absent the issues being addressed in the agreement, any thoughts on who is required to pay?   Thanks and Happy New Year.

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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