[WSBARP] King Co Recording Exasperation #1,000,____

Thu Feb 23 13:10:30 PST 2023

Always easier, and normally more profitable, to comply with petit 
tyranny than to fight it.

K. Garl Long

On 2/23/23 12:57, Roger Hawkes wrote:
>
> Dwight: it is true that ‘knuckling under’ is less expensive in an 
> individual case, but these kinds of rejections are common and cost our 
> clients many thousands, collectively.
>
> *From:* wsbarp-bounces at lists.wsbarppt.com 
> <wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Dwight Bickel
> *Sent:* Thursday, February 23, 2023 11:56 AM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* Re: [WSBARP] King Co Recording Exasperation #1,000,____
>
> The local excise tax people don’t like that clearing title regulation. 
> They will require use of the gift regulation. My guess is that if you 
> use the gift supplement form, which explains the lack of consideration 
> and the lack of assumption of debt, no real estate sales tax will be 
> required. Way easier to “knuckle under” than to reason with, argue 
> with, or educate that person!
>
> *From:* wsbarp-bounces at lists.wsbarppt.com 
> <wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Jennifer L White
> *Sent:* Thursday, February 23, 2023 11:35 AM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* [WSBARP] King Co Recording Exasperation #1,000,____
>
> Hello fellow listserv colleagues:
>
> My latest frustration with a King Co filing rejection.
>
> Facts: Mother, widowed, goes to buy a home. She pays 100% of the 
> purchase price. There is no debt. For reasons I don’t wish to publish, 
> at the last minute at closing (without consultation with any advisor), 
> Mother adds one of her adult daughters to the title. This child did 
> not pay even one cent towards the purchase and I don’t believe she has 
> ever lived there. Mother then decides she wants her off title. No 
> consideration is passing to daughter to get her off title. I prepare a 
> QCD and ETA citing WAC 458-61A-215(1) (WAC attached for your 
> reference). I additionally prepare a written narrative of the facts 
> and have them both sign it, which is submitted along with the ETA (as 
> required by (3) of the WAC).
>
> Rejection: Reasoning – this is a gift. Resubmit and use the published 
> gift supplement form.
>
> This is NOT a gift. This is a title clearance. Any ideas on how to 
> approach this problem other than knuckling under and re-submitting it 
> as ‘required’ by this county minion?
>
> *WAC 458-61A-215 Clearing or exiting title, and additions to title. 
> *(1) *Introduction. *The real estate excise tax does not apply to 
> quitclaim deeds given for the sole purpose of clearing title if no 
> consideration passes otherwise.This rule does not apply to deeds 
> executed for the purpose of adding persons to title, except in cases 
> of persons added to title for co-signing security purposes only.
>
> (2) *Examples. *The following examples, while not exhaustive, 
> illustrate some of the circumstances in which a transfer of real 
> property may or may not qualify for exemption under this rule. These 
> examples should be used only as a general guide. The taxability of 
> each transaction must be determined after a review of all the facts 
> and circumstances.
>
> (a) An exiting minority partner gives the partnership a quitclaim deed 
> for the purpose of removing any presumptive interest. This trans-fer 
> is exempt from real estate excise tax under this rule.
>
> (b) An heir to an estate gives the estate a quitclaim deed for the 
> purpose of removing any presumptive interest they have in the es-tate. 
> This transfer is exempt under this rule.
>
> (c) A developer deeds greenbelts, streets or common areas in a 
> development to the homeowners association upon completion of the 
> de-velopment and under the terms and covenants of the development. 
> This transfer is exempt under this rule.
>
> (d) Joseph owns a residence and goes to a bank to refinance. His 
> credit is not good enough to obtain the new loan in his name only, but 
> he can qualify if he obtains a co-signor/co-borrower. Joseph's parents 
> agree to co-sign the loan. The bank requests that the parents also go 
> on title with Joseph, and he quitclaims a half interest to his 
> pa-rents. Although the deed may be phrased as a gift to his parents, 
> the deed acts as a security interest for his parents in the event 
> Joseph defaults. The addition of Joseph's parents to the title is 
> exempt un-der this rule, provided Joseph makes all the mortgage 
> payments, and Joseph receives no consideration from his parents for 
> the transfer.
>
> (e) The parents described in (d) of this subsection who have been on 
> title with their child are now issuing a quitclaim deed to Joseph to 
> exit title. Joseph has now paid off or refinanced the mortgage in his 
> name only. The parents' intention was to go on title as "co-si-gnors" 
> only, not as co-purchasers of the property, and they have not made any 
> payments toward the repayment of the loan. This transfer is exempt 
> under this rule.
>
> (3) *Documentation. *In order to claim this exemption, a narrative 
> that explains the nature of the clearance of, or addition to title 
> must be available and provided to the county treasurer or the 
> depart-ment upon request. The narrative must be signed by both grantor 
> and grantee, or agents of either, and attached to the real estate 
> excise tax affidavit.
>
> [Statutory Authority: RCW 82.45.150, 82.32.300, and 82.01.060. WSR 
> 14-06-060, § 458-61A-215, filed 2/28/14, effective 3/31/14. Statutory 
> Authority: RCW 82.32.300, 82.01.060(2), and 82.45.15
>
> Jennifer L. White, Esq.
>
> /jen at appletreelaw.com <mailto:jen at appletreelaw.com>/
>
> 2200 S 76^th Ave
>
> Yakima, WA 98903
>
> 509.225.9813
>
>
> ***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
>
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