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#1295851 - 11/30/09 05:03 PM RESPA transfer taxes
starfish Offline
Gold Star

Registered: 06/25/03
Posts: 411
Loc: Seattle
For the RESPA revisions effective January 1, 2010, transfer taxes are a 0% tolerance. I'm trying to determine if WA state has transfer taxes for these purposes. In researching the issue, I came across a bulletin from the Federation of Tax Administrators that indicated WA state does have real estate transfer taxes. In looking at our current HUDs, I don't see any transfer taxes listed. Does anyone have information on this?

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#1297616 - 12/02/09 05:26 PM Re: RESPA transfer taxes [Re: starfish]
Moman Online
Gold Star

Registered: 07/13/04
Posts: 294
Loc: WA
I chatted with our closers; they indicated the only time we'd use transfer taxes not paid by the seller, would be in the case of a quit claim deed wherein excise taxes were required to transfer the deed.

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#1317258 - 01/04/10 04:27 PM Re: RESPA transfer taxes [Re: Moman]
river girl Online
Platinum Poster

Registered: 11/18/04
Posts: 819
So are you NOT listing excise taxes on a GFE for a purchase transaction in Washington state?

We have it listed but after sampling 4 other FI in WA state this morning, we are the only ones listing it.

What is the reasoning behind not requiring this fee to be listed?

Thank you for the assistance.

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#1317421 - 01/04/10 06:26 PM Re: RESPA transfer taxes [Re: river girl]
OldSchoolBanker Offline
Platinum Poster

Registered: 05/03/05
Posts: 639
Loc: FL
I struggle with disclosing the state transfer fees accurately. Generally these are paid by the seller, however, what if, one time, the buyer is slated to pay them and you did not disclose it?

I wonder if reviewing the contract and discovering new information like that is a changed circumstance?

Here is a link to help with some info. I always find two sources with the same info to help support my data.
http://www.madisontitle.com/generic/InfoByState/infobystate.asp
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#1323284 - 01/12/10 04:14 PM Re: RESPA transfer taxes [Re: river girl]
Moman Online
Gold Star

Registered: 07/13/04
Posts: 294
Loc: WA
We don't list because they are a seller paid cost in the State of Wa. The only seller paid fees listed on the new GFE would be the owner's title, since that's spelled out in HUDs Q and A,

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#1323331 - 01/12/10 05:09 PM Re: RESPA transfer taxes [Re: Moman]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49739
Loc: Galveston, TX
I haven't researched WA State law, but if the law does not specifically require the seller to pay the transfer taxes, then they have to be listed on the GFE regardless of who "usually" pays them.
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#1332966 - 01/28/10 12:13 PM Re: RESPA transfer taxes [Re: rlcarey]
baker Offline
Platinum Poster

Registered: 11/23/05
Posts: 617
Loc: Washington State
RCW 82.45.080 Tax is Seller's Obligation - Choice of Remedies
The tax levied under this chapter shall be the obligation of the seller and the department of revenue may, at the department's option, enforce the obligation though an action of debt aginst the seller or the deparment may proceedin the manner prescribed for the foreclosure of mortgages and resort to one course of enforcment shall not be an election not to pursue the other.

Our title company is telling us that this is only an obligation but because it is negotiable that we have to disclose it. Our legal counsel is telling us it is a requirement of the seller. Does obligation = requirement in this context?

We are not showing it on the GFE on advice of our legal counsel. However, I am following up with our EIC at the OCC on how they will interpret it.

I believe in a previous post someone stated that HUD said if it is not required by law even where it is customary or in the purchase contract that the bank has to show it on the GFE.

I'd be interested to know what other banks are doing. I will re-post when I hear back from our regulator.

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#1390402 - 05/13/10 11:50 AM Re: RESPA transfer taxes [Re: baker]
KeepComplying Offline
New Poster

Registered: 05/12/10
Posts: 3


Has anyone found any more information on this. It appears the law in WA was recently amended to indicate "The tax levied under this chapter is the obligation of the seller..."

Any information you can provide will be appreciated.. If it can be eliminated from the GFE,it will be one less fee that confuses the buyer..

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#1395401 - 05/24/10 07:08 PM Re: RESPA transfer taxes [Re: KeepComplying]
rainman Offline
Power Poster

Registered: 11/12/04
Posts: 2873
The law has read that way for years, and the tax should not be on the GFE in WA, because the statute specifically makes it an obligation of the seller.

Here are the changes to the statute made this year (which don't have anything to do with this issue):

RCW 82.45.080 and 1980 c 154 s 3 are each amended to
read as follows:
(1) The tax levied under this chapter ((shall be)) is the obligation of the seller and the department ((of revenue)) may, at the department's option, enforce the obligation through an action of debt against the seller or the department may proceed in the manner prescribed for the foreclosure of mortgages ((and resort to)). The department's use of one course of enforcement ((shall)) is not ((be)) an election not to pursue the other.
(2) For purposes of this section and notwithstanding any other provisions of law, the seller is the parent corporation of a wholly owned subsidiary, when such subsidiary is the transferor to a third-party transferee and the subsidiary is dissolved before paying the tax imposed under this chapter.
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