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Old 10-01-2013, 11:43 AM
 
172 posts, read 297,348 times
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Apologies if I am asking again but I feel very confused about this. I asked the mortgage broker, she said the seller pays this. The lender then sends us an "Approximate Loan Cost Illustration" which then shows the tax as being payable by us (the buyer). I ask the real estate agent, she said the seller pays. Our friend who recently bought (a new construction) then told us, and at the end, don't be surprised when they ask you to pay tax (they had to cough up about $30,000). I am feeling VERY uncertain about this, and thought I'd ask for feedback here. Who pays, buyer or seller?

SSLifestyler
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Old 10-01-2013, 12:20 PM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,243,006 times
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This can be found on the website of the WA Department of Revenue, however the real estate excise tax is typically paid by the seller of the property, but could be negotiated to be paid by the buyer, and the buyer is liable for the tax if it is not paid, since they cannot put a lien on the seller after they are gone.
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Old 10-01-2013, 02:13 PM
 
Location: Seattle
8,172 posts, read 8,310,335 times
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Absolutely the seller, I've sold many homes and it would be very strange for the sellers to ask buyer to pay. My clients and I would run the other way.
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Old 10-01-2013, 04:56 PM
 
172 posts, read 297,348 times
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If the buyer is liable if the seller does not pay ... how can you safeguard against that happening?

SSLifestyler
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Old 10-01-2013, 05:22 PM
 
Location: Near Graham WA
1,278 posts, read 2,924,050 times
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Quote:
Originally Posted by SouthSeasLifestyler View Post
If the buyer is liable if the seller does not pay ... how can you safeguard against that happening?
SSLifestyler
You spell it out in the contract.
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Old 10-01-2013, 06:18 PM
 
172 posts, read 297,348 times
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Which part of the contract will it be under. I'll get my agent on it o'cos, but I want to look out for it too.

SSLifestyler
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Old 10-01-2013, 06:47 PM
 
Location: Near Graham WA
1,278 posts, read 2,924,050 times
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Quote:
Originally Posted by SouthSeasLifestyler View Post
Which part of the contract will it be under. I'll get my agent on it o'cos, but I want to look out for it too.
SSLifestyler
Hopefully one of our RE agent posters can answetr this... guys???
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Old 10-01-2013, 08:58 PM
 
9,618 posts, read 27,353,923 times
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You can and should contact the escrow company involved. The seller pays the excise tax. Often, the loan documents and escrow paperwork are confusing. It'll be added to your costs but then subtracted elsewhere. If you are going through an escrow company, they will deduct that amount from the proceeds that the seller gets and send it on to the state. When you go to sign the paperwork prior to closing, there will be excise tax paperwork for you to sign, spelling out that the seller pays it. You may already have had contact with the escrow company. Call them up. They are the most likely to give you a clear, unconfusing answer.
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Old 10-03-2013, 04:13 AM
 
172 posts, read 297,348 times
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Thank you Ira, that is very clear.

I'm also a little puzzled about who reviews the CC & Rs and the title documents - the title officer, or a lawyer? Are lawyers typically involved in real estate transactions here. They always are where we come from.

SSLifestyler
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Old 10-03-2013, 10:48 AM
 
9,618 posts, read 27,353,923 times
Reputation: 5382
Quote:
Originally Posted by SouthSeasLifestyler View Post
Thank you Ira, that is very clear.

I'm also a little puzzled about who reviews the CC & Rs and the title documents - the title officer, or a lawyer? Are lawyers typically involved in real estate transactions here. They always are where we come from.

SSLifestyler
In this state it's the escrow people taking the place of the lawyers. This state has something called an LPO ( limited practice officer)who works for the escrow company. Sometimes they are the same company as the title company, and sometimes there are independent escrow companies who don't do title work. Most states in the US use lawyers for this, not escrow folks.
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