<html 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" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<!--[if !mso]><style>v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style><![endif]--><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@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:"Freehand521 BT";
panose-1:3 8 8 2 3 3 7 8 3 4;}
/* 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;}
p.msonormal0, li.msonormal0, div.msonormal0
{mso-style-name:msonormal;
mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:0in;
font-size:12.0pt;
font-family:"Times New Roman",serif;}
span.EmailStyle18
{mso-style-type:personal;
font-family:"Calibri",sans-serif;
color:windowtext;}
span.EmailStyle19
{mso-style-type:personal-reply;
font-family:"Times New Roman",serif;
color:#1F497D;
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><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="blue" vlink="purple">
<div class="WordSection1">
<p class="MsoNormal"><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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Freehand521 BT";color:#17365D">Jay A. Goldstein<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><img width="252" height="69" id="Picture_x0020_1" src="cid:image001.png@01D22DF3.BFBA34C0" alt="cid:AEF18ED8-6AEE-403C-99E7-30A379E62D84@local"></span><span style="font-size:14.0pt;color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><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">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#4C4C4C">Telephone 360.352.1970 </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
360.357.0844 </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/">www.jaglaw.net</a>
</span><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <o:p></o:p></span></p>
<p class="MsoNormal"><u><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:#17365D"><a href="mailto:jay@jaglaw.net">jay@jaglaw.net</a><o:p></o:p></span></u></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;color:#17365D"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099">Nothing contained herein should be construed as legal advice.<o:p></o:p></span></p>
<p class="MsoNormal"><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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099">Should you not be the intended recipient of this email message,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099">please reply advising of the mistake and then delete this message
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099">from your computer. Should you have any questions,
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099">please call the Sender at 360-352-1970.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Tahoma",sans-serif;color:green">No trees were killed in sending this message
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Tahoma",sans-serif;color:green">(however, a large number of electrons were terribly inconvenienced).</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:#000099"><o:p> </o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#1F497D"><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>Scott Hildebrand<br>
<b>Sent:</b> Monday, October 24, 2016 12:34 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>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<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">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">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">wsbarp@lists.wsbarppt.com</a>><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-top:5.0pt;margin-right:0in;margin-bottom:5.0pt">
<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>