<HTML xmlns="http://www.w3.org/TR/REC-html40" xmlns:v =
"urn:schemas-microsoft-com:vml" xmlns:o =
"urn:schemas-microsoft-com:office:office" xmlns:w =
"urn:schemas-microsoft-com:office:word" xmlns:m =
"http://schemas.microsoft.com/office/2004/12/omml"><HEAD>
<META content="text/html; charset=utf-8" http-equiv=Content-Type>
<META name=Generator content="Microsoft Word 14 (filtered medium)">
<STYLE><!--
/* Font Definitions */
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:"Bella Donna";
panose-1:3 0 5 2 3 6 4 3 0 3;}
@font-face
{font-family:"TypoUpright BT";
panose-1:3 2 7 2 3 8 7 5 7 5;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:blue;
font-weight:normal;
font-style:normal;
text-decoration:none none;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></STYLE>
</HEAD>
<BODY lang=EN-US dir=ltr link=blue vLink=purple>
<DIV dir=ltr>
<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>
<DIV
style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>
<DIV style="FONT: 10pt tahoma">
<DIV> </DIV>
<DIV style="BACKGROUND: #f5f5f5">
<DIV style="font-color: black"><B>From:</B> <A title=jjdawes@goregrewe.com
href="mailto:jjdawes@goregrewe.com">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">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"><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"'>
wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<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>
<P>
<HR>
_______________________________________________<BR>WSBARP mailing
list<BR>WSBARP@lists.wsbarppt.com<BR>http://mailman.fsr.com/mailman/listinfo/wsbarp</DIV></DIV></DIV></BODY></HTML>