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<p class="MsoNormal"><span style="font-size:12.0pt;color:blue">Hopefully a standard rebut to the rebuttable presumption is if the gift is an exempt transfer under the Garn-St. Germain Act and 12 USC Sec. 1701j-3(d).
<o:p></o:p></span></p>
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<strong><span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">§ 1701j-3(d) Due on sale exemptions</span></strong><span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525"><o:p></o:p></span></p>
<p style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in;text-align:justify;background:white;box-sizing: border-box;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-thickness: initial;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;<o:p></o:p></span></p>
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<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">2) the creation of a purchase money security interest for household appliances;<o:p></o:p></span></p>
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<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;<o:p></o:p></span></p>
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<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">4) the granting of a leasehold interest of three years or less not containing an option to purchase;<o:p></o:p></span></p>
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<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">5) a transfer to a relative resulting from the death of a borrower;<o:p></o:p></span></p>
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<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">6) a transfer where the spouse or children of the borrower become an owner of the property;<o:p></o:p></span></p>
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<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower
becomes an owner of the property;<o:p></o:p></span></p>
<p style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in;text-align:justify;background:white;box-sizing: border-box;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-thickness: initial;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or<o:p></o:p></span></p>
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<span style="font-size:12.0pt;font-family:"Open Sans",sans-serif;color:#252525">9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:blue"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:blue"><o:p> </o:p></span></p>
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<p class="MsoNormal"><i><span style="font-size:18.0pt;font-family:"TypoUpright BT";color:blue;mso-ligatures:none">Jeanne</span></i><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:18.0pt;font-family:"TypoUpright BT";color:blue;mso-ligatures:none">Jeanne J.</span></i></b><b><i><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none">
</span></i></b><b><i><span style="font-size:18.0pt;font-family:"TypoUpright BT";color:blue;mso-ligatures:none">Dawes</span></i></b><b><i><span style="font-size:18.0pt;font-family:"Bella Donna";color:blue;mso-ligatures:none"><o:p></o:p></span></i></b></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none">Attorney at Law</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none">Gore & Grewe, P.S.</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none">103 E. Indiana Avenue, Suite A</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none">Spokane, WA 99207-2317</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none">Voice: 509-326-7500</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none">Fax: 509-326-7503</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none"><a href="mailto:jjdawes@goregrewe.com"><span style="color:blue">jjdawes@goregrewe.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:blue;mso-ligatures:none"><img border="0" width="172" height="111" style="width:1.7916in;height:1.1562in" id="Picture_x0020_3" src="cid:image001.png@01D9FA99.64006CB0"><img border="0" width="123" height="127" style="width:1.2812in;height:1.3229in" id="Picture_x0020_2" src="cid:image002.png@01D9FA99.64006CB0"></span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none">INFORMATION CONTAINED IN THIS E-MAIL TRANSMISSION IS PRIVILEGED AND CONFIDENTIAL. </span><span style="color:blue;mso-ligatures:none">
</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:blue"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Eric Nelsen<br>
<b>Sent:</b> Monday, October 09, 2023 9:51 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Proposed changes in REET gift exemption WAC 458-61A-201<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Rulemaking process has started to amend WAC 458-61A-201, to try to clarify how the gift exemption from real estate excise tax works when there is underlying debt secured by the property. I haven’t read through it thoroughly yet but it does
include a rebuttable presumption that the tax should be paid on the whole debt if there is a due-on-sale clause in the lien instrument.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I always find gifts with underlying debt a bit tricky to figure out, so I hope we can help DOR get this right.
<a href="https://dor.wa.gov/laws-rules/rule-making-agenda">Here’s the rulemaking agenda</a> that sets a hearing for
<b><u>October 25 at 10:00 a.m.</u></b> Must pre-register in order to join the meeting.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The proposed amendment to the WAC is <a href="https://dor.wa.gov/sites/default/files/2023-10/61A-201cr1frmdraftSept23.pdf?uid=651f4a6abd37f">
here</a>. The person to contact at DOR is Darius Massoudi; his contact info is on the cover page to the proposed amendment.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Sayre Law Offices, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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