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Timothy,</div>
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I'll just add that, although you didn't ask about it, I always recommend reviewing the DFI rules on lending to see if a waiver is required.
<a class="OWAAutoLink" id="OWA2590170b-8e7f-cf49-9d4b-601b979b8673" href="https://dfi.wa.gov/residential-seller-financing">
https://dfi.wa.gov/residential-seller-financing</a></div>
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<a style="text-decoration: none; color: var(--themePrimary);" href="https://dfi.wa.gov/residential-seller-financing" id="LPUrlAnchor868180" target="_blank">Residential Seller Financing and Third-Party Lending</a></div>
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Consumer lending is regulated at both the state and federal levels. In Washington, the lending of money or extension of credit for family, personal, or household use, including the financing of residential mortgages, and secured or unsecured consumer loans,
is regulated under the Consumer Loan Act, chapters 31.04 RCW and 208-620 WAC and requires a licensed unless otherwise exempt. Regulation ...</div>
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dfi.wa.gov</div>
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Best,<br>
Nick</div>
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<p class="elementToProof"><span style="font-size: 12pt; color: black;"><b>Nicholas Pleasants | Shareholder</b></span></p>
<p class="elementToProof"><span style="color: black;"><b> </b></span></p>
<p class="elementToProof"><span style="color: rgb(112, 173, 71);"><img style="width: 2.322in; height: 0.989in; margin-top: 0px; margin-bottom: 0px;" height="94" width="222" alt="OseranHahnAttyatLaw 8" data-outlook-trace="F:1|T:1" src="cid:b892c426-31aa-44b0-a7c3-cc453db6781d"></span></p>
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<p class="elementToProof"><span style="color: black;">11225 SE 6<sup>th</sup> Street | Suite 100 | Bellevue, WA 98004<br>
Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail: <a style="margin-top: 0px; margin-bottom: 0px;" class="OWAAutoLink" id="OWA15ee0d20-35b7-2451-fa3f-40b8404d3220" href="mailto:npleasants@ohswlaw.com">
npleasants@ohswlaw.com</a></span></p>
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<p class="elementToProof"><span style="font-family: "Times New Roman", serif; font-size: 10pt; color: rgb(31, 73, 125);">CONFIDENTIALITY NOTE: This e-mail message contains information belonging to the law firm of Oseran Hahn, P.S., which may be privileged,
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> on behalf of Eric Nelsen <eric@sayrelawoffices.com><br>
<b>Sent:</b> Tuesday, July 29, 2025 1:52 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Minimum interest rate, seller financed</font>
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<p class="x_MsoNormal"><span style="font-size:11.0pt">What Mark said. I have to re-research this every time I handle one. Start by searching for explainers on “imputed interest.”</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"><a href="https://www.irs.gov/applicable-federal-rates">https://www.irs.gov/applicable-federal-rates</a></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"><a href="https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fturbotax.intuit.com%2ftax-tips%2ftax-payments%2firs-tax-rules-for-imputed-interest%2fL7UbulHpC&c=E,1,IMEuajJoYBqdWyInASsElFNWNoNZWs6_geSdPelr9lhxQNpIpdk2FiRre5HdXBbSHuqD_JoLXYhWZVJIuS2YP_As-9qCHiBdvpIwoTB3OiM,&typo=1">https://turbotax.intuit.com/tax-tips/tax-payments/irs-tax-rules-for-imputed-interest/L7UbulHpC</a></span></p>
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<p class="x_MsoNormal"><span style="font-size:11.0pt">Sincerely,</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Eric</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Eric C. Nelsen</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Sayre Law Offices, PLLC</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">1417 31st Ave South</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Seattle WA 98144-3909</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">206-625-0092</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"><a href="mailto:eric@sayrelawoffices.com"><span style="color:#467886">eric@sayrelawoffices.com</span></a></span></p>
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<p class="x_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 <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Mark Anderson<br>
<b>Sent:</b> Tuesday, July 29, 2025 1:34 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Minimum interest rate, seller financed</span></p>
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<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"><span style="font-size:10.0pt; font-family:"Arial",sans-serif; color:#002060">They can contract for any rate to which the parties agree. However, if the interest rate is below the Applicable Federal Rate (AFR) for the month in which
the loan is extended, the discount on the interest rate could be seen by the IRS as a gift that could perhaps affect the sellers lifetime gift exemptions, etc.</span></p>
<p class="x_MsoNormal"><span style="font-size:10.0pt; font-family:"Arial",sans-serif; color:#002060"> </span></p>
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<p class="x_MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt; font-family:"Arial",sans-serif; color:#002060">Mark B. Anderson<br>
</span></b><span style="font-size:10.0pt; font-family:"Arial",sans-serif; color:#002060">ANDERSON LAW FIRM PLLC<br>
821 Dock Street, Suite 209, PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com"><span style="color:#002060">marka@mbaesq.com</span></a><br>
<a href="https://linkprotect.cudasvc.com/url?a=http%3a%2f%2fwww.mbaesq.com%2f&c=E,1,b9VVY5jsTBwY5Nr2oQBdLnSgdEES_qN803NBH9FPJmSScnTZNm6Kpj8JGsYFTB5844t9VW-vpepZAws-I4ZO4SjO6P3lfypFXqnsu5zQJ2lQ24Ud2StlcTYF&typo=1"><span style="color:#002060">www.mbaesq.com</span></a><b></b></span></p>
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<p class="x_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">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Timothy Lehr<br>
<b>Sent:</b> Tuesday, July 29, 2025 1:26 PM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBARP] Minimum interest rate, seller financed</span></p>
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<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal">All, </p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal">Is there a minimum interest rate that is required by the state or other agency if a client is selling a property to a family member or third party and carrying a note as a seller financed deal? Or can they contract to any rate the parties
agree? </p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal">Thanks,</p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"><b><span style="font-size:11.0pt">Timothy C. Lehr</span></b></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Attorney & Partner</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
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<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">p: 360.855.0131</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">e: <a href="mailto:timothy@stileslaw.com">
timothy@stileslaw.com</a></span></p>
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