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<DIV>Thanks Robert</DIV>
<DIV>All of 108 assumes a transfer to a contractor as the first step.</DIV>
<DIV>Very interesting. 108 (4) b is the usual situation where the land owner
transfers to the developer the larger parcel so it can be subdivided (and
someone pays REET on the value of the bigger piece) and then gets back the one
acre.</DIV>
<DIV>In this case the client is getting from the developer the larger piece,
then in effect client (on paper) does the development short plat and then giving
the remaining 7 lots (35 acres) to the developer and he wants to just pay
the REET on the value of the 5 acres. Not sure that this rule would be
applied?</DIV>
<DIV>108 (4) c seems closer but again the first transfer is to the developer not
to the homeowner as in our case. In looking at both of those, it
seems like the REET on the transfer to the homeowner of the 40 acres must be
based on the value of the whole ($35,000 x 5 = $175,000) not the $35,000 for the
lot my client is actually wanting to purchase and end up with??</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>108 (4) 7 doesn’t seem to fit either?</DIV>
<DIV> </DIV>
<DIV>Josh</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: 'Calibri'; COLOR: #000000">Joshua F.
Grant, PS<BR>Attorney at Law<BR>P. O. Box 619<BR>Wilbur, WA 99185<BR>tel 509 647
5578<BR>fax 509 647 2734<BR></DIV>
<DIV
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<DIV> </DIV>
<DIV style="BACKGROUND: #f5f5f5">
<DIV style="font-color: black"><B>From:</B> <A title=cole-gilday@stanwoodlaw.net
href="mailto:cole-gilday@stanwoodlaw.net">Robert R. Cole</A> </DIV>
<DIV><B>Sent:</B> Wednesday, June 24, 2015 10:29 AM</DIV>
<DIV><B>To:</B> <A title=wsbarp@lists.wsbarppt.com
href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</A> </DIV>
<DIV><B>Subject:</B> Re: [WSBARP] Short Platt developer and excited
buyer</DIV></DIV></DIV>
<DIV> </DIV></DIV>
<DIV
style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>Actually
108 (4) (b)<BR>
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<P class=MsoNormal>Very Truly Yours,</P>
<P class=MsoNormal>Robert R. Cole</P>
<P class=MsoNormal>Law Office of Cole & Gilday, P.C. </P>
<P class=MsoNormal><o:p></o:p> </P>
<P class=MsoNormal>10101 - 270th St. NW </P>
<P class=MsoNormal>P.O. Box 249 </P>
<P class=MsoNormal>Stanwood, WA 98292 </P>
<P class=MsoNormal>(360) 629-2900 (Telephone) </P>
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<DIV class=moz-cite-prefix>On 6/24/2015 10:09 AM, Josh Grant wrote:<BR></DIV>
<BLOCKQUOTE cite=mid:C5A8C70BBE9A49C39D3918FF3D9D85A2@JoshPC type="cite">
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<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: 'Calibri'; COLOR: #000000">
<DIV>Thanks Jeanne</DIV>
<DIV> </DIV>
<DIV>Client later advised me that he really didn’t need to borrow on this
piece (he has another house he can encumber and he had all but $30,000 of what
was needed to build his house). I had another list-mate opine that if
there is a clear agreement in the beginning showing that the parties intended
to end up with the 5 acres being transferred only, that the REET could get an
exemption “to clear title”. I don’t see how that could be done.
The client will be deeding back 35 acres of greatly improved land with a deed
“to clear title”. and the gift tax could be an issue (but I doubt that
the eventual bare lots are going to be that much?). Interested in
anyone’s view of the REET.</DIV>
<DIV> </DIV>
<DIV>Josh</DIV>
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<DIV> </DIV>
<DIV style="BACKGROUND: #f5f5f5">
<DIV style="font-color: black"><B>From:</B> <A title=jjdawes@goregrewe.com
href="mailto:jjdawes@goregrewe.com" moz-do-not-send="true">Jeanne Dawes</A>
</DIV>
<DIV><B>Sent:</B> Tuesday, June 23, 2015 3:33 PM</DIV>
<DIV><B>To:</B> <A title=wsbarp@lists.wsbarppt.com
href="mailto:wsbarp@lists.wsbarppt.com" moz-do-not-send="true">WSBA Real
Property Listserv</A> </DIV>
<DIV><B>Subject:</B> Re: [WSBARP] Short Platt developer and excited
buyer</DIV></DIV></DIV>
<DIV> </DIV></DIV>
<DIV
style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>
<DIV class=WordSection1>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: blue'>Josh, if I understand
correctly the developer is going to deed the entire 40 acres to your
client? Sounds dangerous. In addition to Steve’s comments, there
may be some tax consequences, if the value of the property is more than the
annual gift tax exemption. One more thought, the Treasurer will assess
REET on the FMV, even if the purchase price is $1. Additionally, the
bank still won’t lend on just part of it, they will want to take the entire 40
as security. Big problem on the deed back to the developer if it is now
subject to a mortgage. It sounds like a bad
idea.<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: blue'><o:p></o:p></SPAN> </P>
<DIV>
<P class=MsoNormal><I><SPAN
style='FONT-SIZE: 18pt; FONT-FAMILY: "TypoUpright BT"; COLOR: blue'>Jeanne</SPAN></I><SPAN
style="COLOR: blue"> <o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="COLOR: blue"><o:p></o:p></SPAN> </P>
<P class=MsoNormal><B><I><SPAN
style='FONT-SIZE: 18pt; FONT-FAMILY: "TypoUpright BT"; COLOR: blue'>Jeanne
J.</SPAN></I></B><B><I><SPAN style="COLOR: blue"> </SPAN></I></B><B><I><SPAN
style='FONT-SIZE: 18pt; FONT-FAMILY: "Bella
donna"; COLOR: blue'>Dawes<o:p></o:p></SPAN></I></B></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'>Attorney
at Law</SPAN><SPAN style="COLOR: blue"><o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'>Gore
& Grewe, P.S.</SPAN><SPAN style="COLOR: blue"><o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'>103 E.
Indiana Avenue, Suite A</SPAN><SPAN style="COLOR: blue"><o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'>Spokane,
WA 99207-2317</SPAN><SPAN style="COLOR: blue"><o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'>Voice:
509-326-7500</SPAN><SPAN style="COLOR: blue"><o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'>Fax:
509-326-7503</SPAN><SPAN style="COLOR: blue"><o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'><A
href="mailto:jjdawes@goregrewe.com" moz-do-not-send="true"><SPAN
style="COLOR: blue">jjdawes@goregrewe.com</SPAN></A></SPAN><SPAN
style="COLOR: blue"><o:p></o:p></SPAN></P>
<P class=MsoNormal
style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto"><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'>INFORMATION
CONTAINED IN THIS E-MAIL TRANSMISSION IS PRIVILEGED AND CONFIDENTIAL.
</SPAN><SPAN style="COLOR: blue"></SPAN><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: blue'><o:p></o:p></SPAN></P></DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: blue'><o:p></o:p></SPAN> </P>
<DIV>
<DIV
style="BORDER-TOP: #b5c4df 1pt solid; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 3pt; PADDING-LEFT: 0in; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">
<P class=MsoNormal><B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'>From:</SPAN></B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'> <A
class=moz-txt-link-abbreviated
href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</A>
[<A class=moz-txt-link-freetext
href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</A>]
<B>On Behalf Of </B>Josh Grant<BR><B>Sent:</B> Tuesday, June 23, 2015 2:20
PM<BR><B>To:</B> wsbar<BR><B>Subject:</B> [WSBARP] Short Platt devloper and
excited buyer<o:p></o:p></SPAN></P></DIV></DIV>
<P class=MsoNormal><o:p></o:p> </P>
<DIV>
<DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>Developer is
developing a 40 acre piece. He will be short platting it into 5 acre
pieces. Surveyor is telling him this should be no problem in getting
this approved.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>My client is a
prospective buyer. They have a legal description for his five acres from
the surveyor. He wants to get going with a new house. I told him,
“no, you have to wait til the short plat is approved, for a bunch of legal
reasons, but in addition the bank won’t lend you the $250,000 for the new
house til you are a fee owner”.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>So now the two of
them have agreed as follows:<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>Developer will sell
the 40 acres to the client for the agreed upon purchase price of the five acre
($35,000). Developer will continue to pay all costs to get the short plat
approved (about a year from now). Developer will be obligated to pay all
costs even though client will be signing the applications etc. Developer
will be granted an option to purchase the 35 acres back when the short plat is
finally approved for $1.00.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>Would the 1% excise
tax be based on the $35,000 first sale? Probably. The transfer
back of the 35 acres for $1.00 plus all the development costs... what would
the excise tax be based on?<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>I see lots of
problems from the developer’s side, but what else would the buyer be exposed
to if this never gets approved?<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>and if this is a
doable thing, anyone have forms for the option to purchase ? (yeah
right).<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>Thanks<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>Josh<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>Joshua F. Grant,
PS<BR>Attorney at Law<BR>P. O. Box 619<BR>Wilbur, WA 99185<BR>tel 509 647
5578<BR>fax 509 647 2734<o:p></o:p></SPAN></P></DIV></DIV></DIV></DIV>
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