WAC 458-61A-110
Relocation service -- Two-deed process. (1) Introduction. The real estate excise tax applies to
property transfers involving the two-deed process or delivery
of a deed, blank as to the grantee, but otherwise complete.
(2) Delivery to third party. The subsequent delivery of
the deed to a third person named as grantee for consideration
is also a taxable sale.
(3) Examples. The following examples identify a number
of facts and then state a conclusion. These examples are
provided as a general guide. The status of each situation
must be determined after a review of all of the facts and
circumstances.
(a) Bob lists his house with a realtor under an agreement
that if the house does not sell within four months, the
realtor will purchase the house from Bob at the agreed price.
Bob intends to purchase a house listed with that realtor and
needs the funds from the sale of his house to use as a payment
for the new house. Bob's house does not sell within the
four-month period so the realtor purchases Bob's house. Bob
executes a blank deed and gives it to the realtor, authorizing
the realtor to insert the grantee's name when the realtor
eventually resells the house. Real estate excise tax is due
on both transfers. Bob owes real estate excise tax on the
selling price of the house at the time he transfers the house
to the realtor. The realtor owes real estate excise tax on
the selling price of the house upon sale to the final buyer.
(b) PSP Corporation contracts with a relocation company
to handle the sale of homes for its employees that are
relocating. The employee transfers the property to the
relocation company. The relocation company delivers the deed
to an escrow company who holds the deed until the relocation
company finds a buyer. Real estate excise tax is due on both
transfers. Tax is due when the employee transfers the deed to
the relocation company. Real estate excise tax is due on the
second transfer when the relocation company transfers the
property to the buyer.
(4) Transactions involving only a single deed. In the
event the transactions are accomplished by one deed, the
county may require documentation confirming the date of sale
of each transaction. The documentation may include a copy of
the relocation contract, copy of the settlement statement(s),
etc. Even though there is only one deed, two taxable
transactions have occurred, and real estate excise tax is due
on both.
[Statutory Authority: RCW 82.32.300, 82.01.060(2), and82.45.150
. 05-23-093, § 458-61A-110, filed 11/16/05,
effective 12/17/05.]