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</o:shapelayout></xml><![endif]--></head><body bgcolor=white lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#993366'>I agree that title passes by operation of law notwithstanding the lack of a recording. I also agree that this new law deals only with excise tax considerations, not with the passing of title.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#993366'>I am simply concerned that certain county offices may cause problems for property owners who come into title through one of the mechanisms contemplated by this law. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#993366'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#993366'>For instance, if John Doe and Jane Doe inherit through lack of probate from their Father, and the Assessor’s Office won’t change the taxpayer name and address without an Excise Tax Affidavit, and won’t accept an Excise Tax Affidavit without a corresponding recorded Lack of Probate Affidavit, we want to be ready with a recordable form Affidavit. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#993366'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:HelveticaNeueETW01-55Rg;color:#993366'>John McCrady<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:HelveticaNeueETW01-55Rg;color:#993366'>Counsel</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#993366'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#993366'>Puget Sound Title Company<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#993366'>5350 Orchard Street West<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#993366'>University Place WA 98466<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#993366'>253-476-5721<o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#993366'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Bickel, Dwight<br><b>Sent:</b> Tuesday, May 03, 2016 2:54 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com>; REALPROP@yahoogroups.com<br><b>Subject:</b> [WSBARP] Requirements for recording transfers by operation of law<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Verdana",sans-serif;color:#002060'>John McCrady asked what I meant when I replied that the clerk’s comments to Mike Winslow were not correct that transfers by operation of law must be recorded.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Verdana",sans-serif;color:#002060'><o:p> </o:p></span></p><p class=MsoNormal><span 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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Verdana",sans-serif;color:#002060'><o:p> </o:p></span></p><p class=MsoNormal><span 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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Verdana",sans-serif;color:#002060'><o:p> </o:p></span></p><p class=MsoNormal><span 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.<o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Verdana",sans-serif;color:navy'><o:p> </o:p></span></p><p class=MsoNormal><span 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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Verdana",sans-serif;color:navy'><o:p> </o:p></span></p><p class=MsoNormal><span 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">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. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>WAC 458-61A-303 Affidavit. (1) Introduction. This section explains<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>when a real estate excise tax affidavit is required for the<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>((<s>conveyance</s>)) <u>transfer</u> of ((<s>an interest in</s>)) real property. See WAC<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>458-61A-101 for procedures pertaining to transfers and acquisitions of<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>a controlling interest in an entity owning real property in the state<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>of Washington. (2) Affidavit required. In general, an affidavit must be filed<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>when ownership or title to real property transfers as evidenced by<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>conveyance, deed, grant, assignment, quitclaim, <u><span style='background:yellow;mso-highlight:yellow'>or any other document<o:p></o:p></span></u></span></p><p class=MsoNormal style='margin-left:.5in'><u><span style='font-size:10.0pt;font-family:"Arial",sans-serif;background:yellow;mso-highlight:yellow'>effectuating the transfer</span></u><span style='font-size:10.0pt;font-family:"Arial",sans-serif'> including, but not limited to, the following:<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;background:yellow;mso-highlight:yellow'>(b) ((<s>Conveyance</s>)) <u>Transfer</u> resulting from a court order;<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;background:yellow;mso-highlight:yellow'>(g) ((<s>Conveyance</s>)) <u>Transfer</u> to an heir in the settlement of an<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span 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'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Verdana",sans-serif;color:navy'><o:p> </o:p></span></p></div><div class=MsoNormal align=center style='text-align:center'><hr size=1 width="100%" noshade style='color:black' align=center></div><p class=MsoNormal>NOTICE: The information contained in this message is proprietary and/or confidential and may be privileged. If you are not the intended recipient of this communication, you are hereby notified to: (i) delete the message and all copies; (ii) do not disclose, distribute or use the message in any manner; and (iii) notify the sender immediately. <o:p></o:p></p></div></body></html>