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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Dwight, <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Great breakdown. Thank you. Your highlighted text raises another question for me though. Subsection (3)(b) is, “The funds used by the nominee to acquire the property were provided by the third party.” In the FlyHomes example, isn’t FlyHomes acquiring the property with its own cash rather than using the buyer-client’s funds? How are they getting around the (3)(b) requirement of the third party using their own funds to purchase? <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sam <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Samuel M. Meyler</span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Meyler Legal, PLLC </span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>1700 Westlake Ave. N., Ste. 200<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Seattle, Washington 98109</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Tel:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7770<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Fax:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> 206.876.7771<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>Email:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><a href="mailto:samuel@meylerlegal.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif'>samuel@meylerlegal.com</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>NOTICE:</span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Arial",sans-serif;color:blue'>This electronic message contains information which may be Confidential or Privileged and constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act 18 USC 2510. The information is intended to be for the use of the individual or entity named above. If you are not the intended recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you received this transmission in error, please notify the sender and delete the copy you received together with any attachments. Thank you.</span><o:p></o:p></p></div><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Dwight Bickel<br><b>Sent:</b> Wednesday, March 10, 2021 3:27 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Cc:</b> Kary Krismer <Krismer@comcast.net><br><b>Subject:</b> Re: [WSBARP] Nominees; WAC 458-61A-214; Flyhomes<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-family:"Verdana",sans-serif'>The transaction model explained in prior posts can be done without a second excise tax due under the nominee excise exemption. Just ensure the documentation requirements of (5) are done with documentation dated before the initial purchase.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Verdana",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>WAC 458-61A-214 (5) Acceptable documentation includes a notarized statement, dated on or before the date of the initial purchase, that the nominee acquired the property on behalf of the third party, or other documentation clearly demonstrating the requirements of subsection (3) of this section have been satisfied. Such documentation may include, but is not limited to, financial documentation evidencing the nominee/third-party relationship existed from the time of the original transfer, and confirming the source of the funds used to purchase the property.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Verdana",sans-serif'>Reply to the comparison posted by Kary Krismer: <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Verdana",sans-serif'>A transaction where a relocation company acquires a deed from the owner with compensation to that owner, then acts to resell the property, does not comply with the nominee exception, for several reasons. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal style='text-indent:.5in;background:white'><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:black'>(3) <b>Subsequent transfer.</b> The later transfer of the property by the nominee to the third party purchaser is subject to real estate excise tax, unless each of the following requirements is met:<o:p></o:p></span></p><p class=MsoNormal style='text-indent:.5in;background:white'><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:black'>(a) The proper tax was paid on the initial purchase of the property by the nominee;<o:p></o:p></span></p><p class=MsoNormal style='text-indent:.5in;background:white'><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:black'>(b) <span style='background:yellow;mso-highlight:yellow'>The funds used by the nominee to acquire the property were provided by the third party;</span><o:p></o:p></span></p><p class=MsoNormal style='text-indent:.5in;background:white'><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:black'>(c) <span style='background:yellow;mso-highlight:yellow'>The third party legally existed at the time of the initial transaction</span>; and<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in;background:white'><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:black'>(d)(i) <span style='background:yellow;mso-highlight:yellow'>The subsequent transfer from the nominee to the third party is not for a greater consideration than that of the initial acquisition</span><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><div><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'>Also in answer to the question about the purchaser’s insurance against potential excise tax:<o:p></o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'>All title insurance policy forms issued to the purchaser will insure against the risk that there is unpaid excise tax, because that is a lien upon the real property, so unless it is shown as a special exception, or the insured purchaser has actual knowledge that a lien exists, their policy will protect against an assessment by DOR. Of course that would remain a debt due from the “seller” which would be Flyhomes for the second transfer.<o:p></o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'><o:p> </o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'>Dwight A. Bickel<o:p></o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'>Real Property Title Advisor<o:p></o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'>Washington Title Professional<o:p></o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='color:black'><a href="mailto:Dwight@DwightBickel.com"><span style='font-family:"Verdana",sans-serif;color:#002060;border:none windowtext 1.0pt;padding:0in'>Dwight@DwightBickel.com</span></a></span><span style='font-family:"Verdana",sans-serif;color:#002060'><o:p></o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'>https:/dwightbickel.com<o:p></o:p></span></p><p class=MsoNormal style='background:white;vertical-align:baseline'><span style='font-family:"Verdana",sans-serif;color:#002060'><o:p> </o:p></span></p></div></div></body></html>