[WSBARP] Proposed changes in REET gift exemption WAC 458-61A-201

[Mark Anderson]

Here are my initial "off the top of my head" comments about this whole section and the proposed revisions.  I submitted these to the DOR contact person for consideration.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
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Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jeanne Dawes
Sent: 10/09/2023 10:25 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Proposed changes in REET gift exemption WAC 458-61A-201

Hopefully a standard rebut to the rebuttable presumption is if the gift is an exempt transfer under the Garn-St. Germain Act and 12 USC Sec. 1701j-3(d).


§ 1701j-3(d) Due on sale exemptions

1) the creation of a lien or other encumbrance subordinate to the lender's security instrument which does not relate to a transfer of rights of occupancy in the property;

2) the creation of a purchase money security interest for household appliances;

3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;

4) the granting of a leasehold interest of three years or less not containing an option to purchase;

5) a transfer to a relative resulting from the death of a borrower;

6) a transfer where the spouse or children of the borrower become an owner of the property;

7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;

8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or

9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.


Jeanne

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
Voice:  509-326-7500
Fax:      509-326-7503
jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>

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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Eric Nelsen
Sent: Monday, October 09, 2023 9:51 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Proposed changes in REET gift exemption WAC 458-61A-201

Rulemaking process has started to amend WAC 458-61A-201, to try to clarify how the gift exemption from real estate excise tax works when there is underlying debt secured by the property. I haven't read through it thoroughly yet but it does include a rebuttable presumption that the tax should be paid on the whole debt if there is a due-on-sale clause in the lien instrument.

I always find gifts with underlying debt a bit tricky to figure out, so I hope we can help DOR get this right. Here's the rulemaking agenda<https://dor.wa.gov/laws-rules/rule-making-agenda> that sets a hearing for October 25 at 10:00 a.m. Must pre-register in order to join the meeting.

The proposed amendment to the WAC is here<https://dor.wa.gov/sites/default/files/2023-10/61A-201cr1frmdraftSept23.pdf?uid=651f4a6abd37f>. The person to contact at DOR is Darius Massoudi; his contact info is on the cover page to the proposed amendment.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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