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<p>Dwight,</p>
<p>Thank you for the answer regarding relocation, but I'm not sure I
understand. To be clear though, I've always thought relocation
paid excise twice, but one relocation scenario is a bit more clear
to me.<br>
</p>
<p>Here are the two relocation scenarios I was contemplating:</p>
<p>1. Relocation company doesn't take title to the property until
immediately prior to the actual buyer taking title. So the deed
from the relocation seller to the relocation company would be
recorded and then immediately following the relocation company
would record a deed to the buyer. I'm not sure how escrow handles
funds in that scenario.<br>
</p>
<p>2. Relocation company takes title to the property and pays
relocation seller as soon as property passes inspection. If deal
with buyer later falls through then relocation company will
re-market the property, and may obtain more or less than the
original contract price.</p>
<p>It was second that I was considering as clearly requiring two
excise tax payments. That seemingly fails a number of the tests
you posted (the money doesn't come from the buyer and may be
different amount). But I'm not sure why the first scenario would
fail the tests you posted, other than I wouldn't ordinarily
consider them a nominee of the buyer since their relationship is
with the seller.</p>
Kary L. Krismer
<pre class="moz-signature" cols="72">206 723-2148</pre>
<div class="moz-cite-prefix">On 3/10/2021 3:27 PM, Dwight Bickel
wrote:<br>
</div>
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<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"
moz-do-not-send="true"><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"><a class="moz-txt-link-freetext" href="https:/dwightbickel.com">https:/dwightbickel.com</a><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>
<br>
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