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<p class="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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
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<p class="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="http://www.mbaesq.com/"><span style="color:#002060">www.mbaesq.com</span></a><b><o:p></o:p></b></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Timothy Lehr<br>
<b>Sent:</b> Tuesday, July 29, 2025 1:26 PM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBARP] Minimum interest rate, seller financed<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">All, <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="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? <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;mso-ligatures:none">Timothy C. Lehr<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">Attorney & Partner<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><img border="0" width="191" height="69" style="width:1.9895in;height:.7187in" id="Picture_x0020_1" src="cid:image001.jpg@01DC008D.7191EDD0"></span><span style="font-size:11.0pt;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">p: 360.855.0131<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">e: <a href="mailto:timothy@stileslaw.com">
timothy@stileslaw.com</a><o:p></o:p></span></p>
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intended recipient of this communication, you are hereby notified to : (i) delete the email and all copies; (ii) not disclose, distribute or use the email in any manner; (iii) notify the sender immediately. Thank you.
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