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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>You are a lifesaver. Thanks!<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><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>Michael Safren<br><b>Sent:</b> Monday, October 24, 2016 1:42 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBARP] Excise Tax on D/T<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal>Hi Scott,<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I would suggest doing the full reconveyance because it will be a simpler series of transactions to complete (2 simple transactions vs. 1 a bit more complicated) and will make getting title insurance on both the parcels much easier to obtain. Down the line, one of the parties are going to want to sell Property #1 and it could be difficult to provide clear title if there is no reconveaynce associated with Property #1 only a change in the note.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>If the parties go with the modification route, the parties will have to modify the existing Deed of Trust as well as the note to secure the obligation against property #2. Again this can cause complications for title insurance as well as drafting errors, because the terms of the Deed of Trust for property #1 may differ from the intended terms for property #2.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>My suggestion is to have two simple transactions - a reconveyance on property #1 and create a note and Deed of Trust secured against Property #2 rolling in the existing indebtedness vs. drafting modifications to the note and Deed of Trust, but I think both would accomplish the intend goals of the parties.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I hope this helps. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Kind regards, <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div></div><div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>On Mon, Oct 24, 2016 at 12:40 PM, Jay Goldstein <<a href="mailto:Jay@jaglaw.net" target="_blank">Jay@jaglaw.net</a>> wrote:<o:p></o:p></p><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:14.0pt;color:#1F497D'>If it’s just the note being transferred, you could do note modification, reciting the modification and everyone signs. </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:14.0pt;font-family:"Freehand521 BT";color:#17365D'>Jay A. Goldstein</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><img border=0 width=252 height=69 style='width:2.625in;height:.7187in' id="m_-6496538077310692990Picture_x0020_1" src="cid:image002.png@01D22E02.115D86C0" alt="cid:AEF18ED8-6AEE-403C-99E7-30A379E62D84@local"></span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#404040'>1800 Cooper Point RD SW NO. 8</span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#5D6F21'> </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#4C4C4C'> </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#5C6D2C'>|</span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#5D6F21'> </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#4C4C4C'> Olympia, WA 98502</span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#5D6F21'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#4C4C4C'>Telephone <a href="tel:360.352.1970" target="_blank">360.352.1970</a> </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#1F497D'> </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#5C6D2C'>| </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#4C4C4C'> Fax <a href="tel:360.357.0844" target="_blank">360.357.0844</a> </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#5C6D2C'>|</span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#5D6F21'> </span><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#4C4C4C'> <a href="http://www.jaglaw.net/" target="_blank">www.jaglaw.net</a> </span><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><u><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#17365D'><a href="mailto:jay@jaglaw.net" target="_blank">jay@jaglaw.net</a></span></u><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:11.0pt;color:#17365D'> </span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099'>Nothing contained herein should be construed as legal advice.</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099'>The purpose of this email is to transmit a message or document.</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099'>Should you not be the intended recipient of this email message,</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099'>please reply advising of the mistake and then delete this message </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099'>from your computer. Should you have any questions, </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099'>please call the Sender at <a href="tel:360-352-1970" target="_blank">360-352-1970</a>.</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Tahoma",sans-serif;color:green'>No trees were killed in sending this message </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Tahoma",sans-serif;color:green'>(however, a large number of electrons were terribly inconvenienced).</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:14.0pt;color:#1F497D'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid windowtext 1.0pt;padding:3.0pt 0in 0in 0in;border-color:currentColor currentColor'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><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'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a> [mailto:<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Scott Hildebrand<br><b>Sent:</b> Monday, October 24, 2016 12:34 PM</span><o:p></o:p></p><div><div><p class=MsoNormal><br><b>To:</b> 'WSBA Real Property Listserv' <<a href="mailto:wsbarp@lists.wsbarppt.com" target="_blank">wsbarp@lists.wsbarppt.com</a>><br><b>Subject:</b> Re: [WSBARP] Excise Tax on D/T<o:p></o:p></p></div></div></div></div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Michael-</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Here’s another one for you on the same fact pattern.</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>I am transferring an encumbrance from one property to another. Same parties, just need to transfer the note. Can I do that with just a transfer of note or something simple like that? Do I need to reconvey??</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><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'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Michael Safren<br><b>Sent:</b> Monday, October 24, 2016 10:43 AM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com" target="_blank">wsbarp@lists.wsbarppt.com</a>><br><b>Subject:</b> Re: [WSBARP] Excise Tax on D/T</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Hi Scott:<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Craig beat me to the response, but Excise Tax does not apply to a reconveyance because it is not a "Taxable Sale" under the Administrative Code.<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>See WAC 458-61A-102(17)(e) which lists examples of non-taxable transfers<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>"<o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'>(e) <b>Examples.</b> The following examples, while not exhaustive, illustrate some of the circumstances in which a transfer may or may not be taxable. These examples should be used only as a general guide. The status of each situation must be determined after a review of all of the facts and circumstances.<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'>(i) John paid off his home mortgage and wants to get a loan to make improvements and buy a new car. John obtains an equity loan, secured by his home as collateral. This transaction is not subject to the real estate excise tax.<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'>(ii) Bob purchased real property from Sam pursuant to a real estate contract. Real estate excise tax was paid on the purchase price at the time of the sale. Bob has now paid off the property, and Sam is issuing a fulfillment deed to Bob indicating that the real estate contract has been satisfied. The fulfillment deed from Sam to Bob is not subject to the real estate excise tax.<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'>(iii) Diane has made the final payment on her mortgage, and the bank issues a full reconveyance of her property, indicating that the mortgage is paid in full. The reconveyance is not subject to the real estate excise tax."<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'>Hope this helps. <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'>Kind regards,<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-indent:.25in'>Michael Safren<o:p></o:p></p></div></div></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>On Mon, Oct 24, 2016 at 8:35 AM, Scott Hildebrand <<a href="mailto:scott@starboard-strategies.com" target="_blank">scott@starboard-strategies.com</a>> wrote:<o:p></o:p></p><blockquote style='border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt;border-color:currentColor currentColor currentColor rgb(204,204,204)'><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Colleagues:<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>PC is beneficiary of a D/T on property 1.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Grantor on property 1 wants to buy another property and PC would transfer encumbrance to property 2.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Property 1 would then be free and clear and could be sold. D/T would have to be reconveyed.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Can I accomplish this without paying excise tax, or, because there is a reconveyance, excise tax would have to be paid on property 1?<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Thank you,<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Scott Hildebrand<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><br>_______________________________________________<br>WSBARP mailing list<br><a href="mailto:WSBARP@lists.wsbarppt.com" target="_blank">WSBARP@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></p></blockquote></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div></div></div></div></div><p class=MsoNormal><br>_______________________________________________<br>WSBARP mailing list<br><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></p></blockquote></div><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>