<html><body><div style="font-family: Arial; font-size: 12pt; color: #000000"><div aria-label="Compose body">Dwight,<br></div><div aria-label="Compose body"><br></div><div aria-label="Compose body">Very interesting comments.<br></div><div aria-label="Compose body"><br></div><div aria-label="Compose body">My question is whether an unrelated 3rd party seeking title information would find it if there is no record of the change of title at the County Recorder's office. Not all 3rd parties would think to look at court documents - or know where to look.<br></div><div><br></div><div><span name="x"></span><div>
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<div><strong><em>__________________________________<br>Edward L. Clabaugh</em></strong>
<div><strong><em>The Clabaugh Law Firm<br>P.O. Box 333<br>10217 SW Burton Drive, Suite 100<br>Vashon Island, Washington 98070<br>Tel: (206) 463-1500<br>Fax: (206) 463-5806</em></strong>
<div><strong><em>Mobile: (206) 498-0761</em></strong>
<div>IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with Treasury Department and IRS regulations, we inform you that, unless expressly indicated otherwise, any federal tax advice contained in this communication (including any attachments) is not intended or written by The Law Offices of Edward L. Clabaugh to be used, and cannot be used by the taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein (or any attachments).<br>* * * * * * * * * * <br>NOTICE: This communication may contain privileged or other confidential information. If you have received it in error, please advise the sender by reply email and immediately delete the message and any attachments without copying or disclosing the contents. Thank you.<br><span name="x"></span><br></div><br><hr id="zwchr"><div style="color:#000;font-weight:normal;font-style:normal;text-decoration:none;font-family:Helvetica,Arial,sans-serif;font-size:12pt;" data-mce-style="color: #000; font-weight: normal; font-style: normal; text-decoration: none; font-family: Helvetica,Arial,sans-serif; font-size: 12pt;"><b>From: </b>"Dwight Bickel" <Dwight.Bickel@fntg.com><br><b>To: </b>"WSBA Real Property Listserv" <wsbarp@lists.wsbarppt.com>, REALPROP@yahoogroups.com<br><b>Sent: </b>Tuesday, May 3, 2016 2:53:50 PM<br><b>Subject: </b>[WSBARP] Requirements for recording transfers by operation of law<br><div><br></div><style><!--
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--></style><div class="WordSection1"><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:#002060" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: #002060;">John McCrady asked what I meant when I replied that the clerkâs comments to Mike Winslow were not correct that transfers by operation of law must be recorded.</span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:#002060" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: #002060;"> </span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:#002060" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: #002060;">The transfers of title to real property that occur by operation of law due to the effect of death of the owner, whether due to the effect of a Will, the effect of intestate succession, the effect of joint tenancy, the effect of community property or the effect of a Transfer on Death Deed, are effective and complete though no document is recorded.</span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:#002060" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: #002060;"> </span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:#002060" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: #002060;">Similarly, the transfers of title to real property that occur by operation of law due to the effect of a corporate merger, the effect of a divorce decree, the effect of a partition action, or the effect of a quiet title Order, are effective and complete though no document is recorded.</span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:#002060" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: #002060;"> </span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:#002060" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: #002060;">What is new* is that the Dept. of Revenue now requires excise tax affidavits for transfers by operation of law, even if the parties do not desire to record anything. Until the statutory revisions, a few counties were also requiring payment of excise tax for these transfers that were clearly exempt, unless the parties had the precise documentation required by the statute. I think we have solved that issue.</span></p><div><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: navy;"> </span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: navy;">The Treasurers inisisted that the amended statute would require recording any of the documents as listed in that statute that are required documentation of the transfer by operation of law to claim exemption from the real estate sales tax.</span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: navy;"> </span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: navy;">*</span> A change was made February 28, 2014 to <a href="http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A&full=true#458-61A-303" target="_blank" data-mce-href="http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A&full=true#458-61A-303"> WAC 458-61A-303</a> [the regulation that explains when a real estate excise affidavit is required]. It was not made due to a change in the substantive law.</p><p class="MsoNormal"> </p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">WAC 458-61A-303 Affidavit. (1) Introduction. This section explains</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">when a real estate excise tax affidavit is required for the</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">((<s>conveyance</s>)) <span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">transfer</span> of ((<s>an interest in</s>)) real property. See WAC</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">458-61A-101 for procedures pertaining to transfers and acquisitions of</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">a controlling interest in an entity owning real property in the state</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">of Washington. (2) Affidavit required. In general, an affidavit must be filed</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">when ownership or title to real property transfers as evidenced by</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';">conveyance, deed, grant, assignment, quitclaim, <span style="text-decoration: underline;" data-mce-style="text-decoration: underline;"><span style="background:yellow;mso-highlight:yellow" data-mce-style="background: yellow; mso-highlight: yellow;">or any other document</span></span></span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="text-decoration: underline;" data-mce-style="text-decoration: underline;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";background:yellow;mso-highlight:yellow" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif'; background: yellow; mso-highlight: yellow;">effectuating the transfer</span></span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';"> including, but not limited to, the following:</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";background:yellow;mso-highlight:yellow" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif'; background: yellow; mso-highlight: yellow;">(b) ((<s>Conveyance</s>)) <span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">Transfer</span> resulting from a court order;</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";background:yellow;mso-highlight:yellow" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif'; background: yellow; mso-highlight: yellow;">(g) ((<s>Conveyance</s>)) <span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">Transfer</span> to an heir in the settlement of an</span></p><p class="MsoNormal" style="margin-left:.5in" data-mce-style="margin-left: .5in;"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";background:yellow;mso-highlight:yellow" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif'; background: yellow; mso-highlight: yellow;">estate;</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"" data-mce-style="font-size: 10.0pt; font-family: 'Arial','sans-serif';"> </span></p><p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy" data-mce-style="font-size: 11.0pt; font-family: 'Verdana','sans-serif'; color: navy;"> </span></p></div></div><hr style="height:1px;border:none;color:#000;background-color:#000;" data-mce-style="height: 1px; border: none; color: #000; background-color: #000;">NOTICE: The information contained in this message is proprietary and/or confidential and may be privileged. 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