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<p class="MsoNormal">The REET is determined by the amount of consideration passing—the amount of money paid from S to H&W, and/or the amount of H&W's debt assumed by S--so it doesn't really matter what percentage interest is passing.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If S is not paying anything and is not assuming any further debt, then the transaction is a gift. So H&W are conveying to S&SW but H&W remain obligated on the debt?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If S&SW are going to assume and pay the entire debt, then REET would be calculated based on the unpaid balance of principal on the debt. See WAC 458-61A-102(2)(b) and WAC 458-61A-201(3). I suppose arguably it might be calculated on
<i>half</i> the unpaid balance, given how you say the first transaction was done—but I think it depends on what the agreement is between H&W and S as to who will pay the debt after this second transaction.<o:p></o:p></p>
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<p class="MsoNormal">Sincerely,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric C. Nelsen<o:p></o:p></p>
<p class="MsoNormal">Sayre Law Offices, PLLC<o:p></o:p></p>
<p class="MsoNormal">1417 31st Ave South<o:p></o:p></p>
<p class="MsoNormal">Seattle WA 98144-3909<o:p></o:p></p>
<p class="MsoNormal">206-625-0092<o:p></o:p></p>
<p class="MsoNormal">eric@sayrelawoffices.com<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Jenny Ling<br>
<b>Sent:</b> Friday, December 27, 2019 8:47 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com>; wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBARP] QCD and REETA<o:p></o:p></p>
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<p class="MsoNormal">Good Morning, <o:p></o:p></p>
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<p class="MsoNormal">I'm drafting a quit claim for a client where there was a a prior partial transfer in 2011 by H and W, and now H and W want to transfer the remaining interest.
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">The 2011 QCD has Grantors H and W, conveying to Grantees H, W and S.
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">The 2011 REETA shows excise tax paid on ½ the underlying debt, and no consideration of the equity paid to the Grantor, and lists Gross Selling Price of $66,132.48.
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<p>Is my assumption correct that as a result of the 2011 transfer, H, W, and S, each have a 1/3 interest, and S assumed ½ the underlying debt, and that 1/2 the underlying debt is $66,132.48? <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">And now, H and W now want to quit claim to S and SW, and there were be no further assumption of debt by S and SW. On the REETA, for the Gross Selling price do I list 2/3 of the equity and the exemption as 2/3
of the equity per WAC 458-61A-201? <o:p></o:p></p>
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<p><span style="color:purple">Thanks,</span><o:p></o:p></p>
<p style="margin-bottom:12.0pt"><span style="color:purple"><br>
<strong><span style="font-family:"Calibri",sans-serif">Jenny Ling, Esq.</span></strong></span><b><span style="font-size:10.0pt;color:purple"><br>
</span></b><em><span style="font-size:10.0pt;font-family:"Calibri",sans-serif">Attorney and Counselor at Law</span></em><o:p></o:p></p>
<p><span style="font-size:10.0pt"><img width="452" height="40" style="width:4.7083in;height:.4166in" id="a885da23-6f36-48ca-8c51-784eb4f00931" src="cid:image002.jpg@01D5BCB8.200328E0" alt="cid:image002.jpg@01D5BCB8.200328E0"></span><span style="font-size:10.0pt"><br>
14900 Interurban Ave. S., Ste 280 | Seattle, WA 98168</span><br>
<span style="font-size:10.0pt">11900 NE 1st St., Bldg. G - Ste. 300 | Bellevue, WA 98005</span><br>
<span style="font-size:10.0pt">P: (206) 859-5098 ext. 131 | E: <a href="mailto:jenny@jennylinglaw.com">
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