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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'>Michael-<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>Here’s another one for you on the same fact pattern.<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><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??<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 10:43 AM<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>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><o:p> </o:p></p></div><div><p class=MsoNormal>See WAC 458-61A-102(17)(e) which lists examples of non-taxable transfers<o:p></o:p></p></div><div><p class=MsoNormal>"<o:p></o:p></p><div><p class=MsoNormal style='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='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='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='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='text-indent:.25in'><o:p> </o:p></p></div><div><p class=MsoNormal style='text-indent:.25in'><o:p> </o:p></p></div><div><p class=MsoNormal style='text-indent:.25in'>Hope this helps. <o:p></o:p></p></div><div><p class=MsoNormal style='text-indent:.25in'><o:p> </o:p></p></div><div><p class=MsoNormal style='text-indent:.25in'>Kind regards,<o:p></o:p></p></div><div><p class=MsoNormal style='text-indent:.25in'>Michael Safren<o:p></o:p></p></div></div></div><div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>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 #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'>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><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>