[WSBARP] Real Estate Excise Tax Question

[Mark Anderson]

The parties are proceeding on the basis that the loan is assumable (which the lender has confirmed it is) and that M is indeed in a financial position to assume the loan based on whatever assumption package he submits.  M does have a backup plan to pay off the entire loan amount through private funding in the event the current lender is unwilling to let him assume the loan and release W from liability.
One recommendation I received was to treat part of the consideration as a gift, which would require the parties to check and complete section 2.A.2.on the Real Estate Excise Tax Supplemental Statement.  Because the split between M and W seems to be amicable, at least at this point, they may wish to take advantage of this exemption.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
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/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jeanne Dawes
Sent: 09/07/2023 3:23 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Real Estate Excise Tax Question

If the transfer is pursuant to a Court Decree of Dissolution or Settlement Agreement there is an exemption for that WAC 458-61A-203(a)

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>

[cid:image001.png at 01D9E1A2.EADBB880][cid:image002.png at 01D9E1A2.EADBB880]
INFORMATION CONTAINED IN THIS E-MAIL TRANSMISSION IS PRIVILEGED AND CONFIDENTIAL.

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: Thursday, September 07, 2023 3:13 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Real Estate Excise Tax Question

Relief from debt is part of the consideration. If they're jointly liable, then him taking over the loan is consideration equal to half the mortgage balance. See WAC 458-61A-103<https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-103>, WAC 458-61A-102(3)(b)<https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-102>. So in your scenario, REET has to be paid on the cash transfer (half the equity) plus half the debt.
Re other stumbling blocks, there might be some, but this is how I've handled such situations before and I haven't found a better way to do it. Just need to factor in the cost of the transfer into settlement negotiations.
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>

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 Mark Anderson
Sent: Thursday, September 7, 2023 2:47 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Real Estate Excise Tax Question

M and W, an unmarried couple, purchased a home in 2021.  They both signed a promissory note and deed of trust.  M and W are now breaking up and M wants to buy out W's interest in the property.  M and W have agreed that, in exchange for a quitclaim deed from W, M will fully assume the existing loan and pay half the equity in the property to W.
For the purposes of the real estate excise tax, how is the gross selling price calculated?
Do any of you know of any additional stumbling blocks in making this transaction work?
Thanks.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
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/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20230907/e1b8a469/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 38000 bytes
Desc: image001.png
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20230907/e1b8a469/image001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 33452 bytes
Desc: image002.png
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20230907/e1b8a469/image002.png>