- The threat to exercise eminent domain must be imminent.
- The government must have filed condemnation proceedings; or
- The government must have notified the seller in writing of its intent to exercise its power of eminent domain; and
- The government must have the ability and authority to use its power of eminent domain at the time of sale; and
- The government must have specific statutory authority authorizing its power of eminent domain.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Bankruptcy - WAC 458-61A-207
Transfers by a trustee in bankruptcy or debtor in possession made after the plan is confirmed under a chapter 11 or chapter 12 plan are exempt. Federal law prevents REET on these transfers.
Transfers pursuant to deed of trust, foreclosure proceedings, executions of a judgment, deeds in lieu of foreclosure, and contract forfeiture
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Transfers pursuant to deed of trust, foreclosure proceedings, executions of a judgment, deeds in lieu of foreclosure, and contract forfeiture - WAC 458-61A-208
Deed of trust
Transfers in a foreclosure sale by the trustee under the terms of a deed of trust, either to the beneficiary or a third party are exempt.
Court ordered sale in a foreclosure proceeding
Transfers due to a court order or sale by a court in any mortgage, deed of trust, or lien foreclosure are exempt. This exemption does not apply to any other court ordered sale. Any type of negotiated sale is taxable unless another exemption applies. The affidavit must cite the cause number of the foreclosure proceeding. A copy of the court decision must be provided to the county treasurer or the department on request.
Execution of a judgement-sheriff’s sale
Transfers due to the execution of a judgment, generally known as sheriff’s sale are exempt. There must be a writ of execution by the court ordering the property sale. This writ of execution must be provided to the county treasurer or the department on request.
Right of redemption
A subsequent sale or assignment of the right of redemption and the certificate of purchase resulting from the sheriff’s sale are not exempt. REET is based on any payment given or promised to be given and the amount of underlying debt required to be paid for the exercise of the right of redemption.
Receivers
Transfers by a receiver appointed by a court to give effect to the court’s judgement are not exempt. A court order may state the transfer is exempt from REET. However, these transfers are taxable because the court order conflicts with the Washington Administrative Code governing these types of transfers.
Deed in lieu of foreclosure
Transfers by deed in lieu of foreclosure to satisfy a mortgage or deed of trust are exempt if no additional consideration passes.
Transfers by the buyer in a contract purchase to the holder of the contract in lieu of forfeiture due to default on the debt is exempt if no additional consideration passes.
Contract forfeiture
A transfer due to the cancellation or forfeiture of a buyer’s interest in a real estate contract is exempt if no additional consideration passes.
Assignment of indebtedness
A transfer from a servicing agent, who has acquired property due to a foreclosure proceeding or a deed in lieu of foreclosure to the actual owner of the debt is exempt.
Rescission of sale
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Rescission of sale - WAC 458-61A-209
The reconveyance of property due to a rescission of sale is exempt. This exemption applies only to the transfer back to the original owner. It does not apply to the original sale.
To qualify for this exemption all consideration paid toward the selling price must be returned by the seller to the buyer when the property is transferred back to the seller.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Irrevocable trusts - WAC 458-61A-210
Transfer from an irrevocable trust
The distribution of property to the beneficiaries of an irrevocable trust is exempt if no consideration is given for the transfer and the distribution is made according to the provisions in the trust.
Transfer to an irrevocable trust
The transfer to an irrevocable trust is not exempt if the transfer results in a change in the beneficial interest, not a mere change in identity and there is valuable consideration for the transfer.
Mere change in identity or form - Family corporations and partnerships
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Mere change in identity or form - Family corporations and partnerships - WAC 458-61A-211
A transfer in which there is a mere change in form or identity with no beneficial interest change in ownership is exempt. If the transfer results in the grantors having a different proportional interest after the transfer, it is not exempt.
Bob and Jane each own 50% of the property. They transfer the property to an LLC in which Jane owns an 80% membership interest and Bob owns a 20% ownership interest. This is a different proportional interest and is not an exempt transfer.
Qualified transactions
- The transfer by an individual or tenants in common of an interest in property to an entity (corporation, LLC, partnership, etc.) if the entity receives it in the same pro rata shares as the individual or tenants in common held prior to the transfer.
- The transfer by an entity (corporation, LLC partnership, etc.) of its interest in real property to its shareholders or partners in the same pro rata shares as they owned the entity.
- The transfer by an entity of its interest in property to its wholly owned subsidiary, the transfer from a wholly owned subsidiary to its parent or the transfer from one wholly owned subsidiary to another wholly owned subsidiary.
- The transfer by an entity of its property to another entity, if the grantee receives it in the same pro rata shares the grantor held prior to the transfer.
- Corporate mergers and consolidation accomplished by transfer of stock or membership and mergers between corporations and limited partnerships.
- The transfer of property to a newly formed corporation from an incorporator if both of the following apply:
- REET was paid on the original transfer to the incorporator.
- There is documentation before the original transfer that the incorporator received title to the property on behalf of the corporation during its formation process.
Family corporations, partnerships, or other entities
Transfers to an entity that is wholly owned by the grantor and/or the grantor’s spouse or children, regardless of a change in beneficial interest, are exempt.
Review subsection 5 of the above referenced WAC for subsequent transfer circumstances that could result in REET becoming due on the original transfer.
Transfers when there is not a change in identity or form or ownership
Transfers when the grantor and grantee are the same are exempt. For example, a transfer to change ownership from tenants in common to the same owners as joint tenants with rights of survivorship.
Transfers where gain is not recognized under the Internal Revenue Code
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Transfers where gain is not recognized under the Internal Revenue Code - WAC 458-61A-212
A transfer, that for federal income tax purposes, does not involve the recognition of gain or loss for entity formation, liquidation or dissolution, and reorganization is exempt.
Internal Revenue Code sections
- Section 332 - Corporate liquidations – complete liquidations of subsidiaries.
- Section 337 – Corporate liquidations – property distributed to the parent company in complete liquidation of a subsidiary.
- Section 351 – Corporate organization and reorganizations – transfer to corporation controlled by the transferor.
- Section 368(a)(1) – Corporate organizations and reorganizations.
- Section 721 – Partners and partnerships – Nonrecognition of gain or loss on contribution.
- Section 731 – Partners and partnerships – Extent of recognition of gain or loss on distribution.
Even though the transfer may be classified as a non-recognition of gain under the IRC, the department requires the additional stipulation that the transfer must be for entity formation, liquidation or dissolution, and reorganization.
Treatment when gain is partially recognized
In a transfer that qualifies under this section, but a gain is partially recognized under the IRC, REET applies to the amount for which gain is recognized.
IRS “tax deferred” exchange
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
IRS “tax deferred” exchange - WAC 458-61A-213
The purchase of property by an exchange facilitator in connection with an Internal Revenue Code section 1031 tax deferred exchange is not exempt.
The subsequent transfer of the property by the exchange facilitator in completion of the exchange is exempt if each the following requirements are met:
- REET was paid on the initial transfer.
- The REET supplemental statement signed by the exchange facilitator must be attached to the REET affidavit. The supplemental statement attests that the exchange facilitator originally took title to the property for the sole purpose of facilitating a 1031 tax deferred exchange.
- The funds used by the exchange facilitator to acquire the property were provided by the grantee and/or received from the proceeds of the sale of the initial property.
The REET affidavit for the subsequent transfer must show the affidavit number and date of the tax payment for the initial transfer.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Nominee - WAC 458-61A-214
A nominee is a person who acts as an agent on behalf of another person in the purchase of real property.
The initial acquisition of property on behalf of a third-party purchaser by a nominee is not exempt.
The subsequent transfer of the property by the nominee to the third-party purchaser is exempt if each of the following requirements are met:
- REET was paid on the initial purchase of the property.
- The funds used by the nominee for the initial purchase of the property were provided by the third-party purchaser.
- An agreement between the nominee and the third-party purchaser existed at the time of the initial purchase.
- The subsequent transfer from the nominee to the third party is not for greater consideration than the initial purchase.
The REET affidavit for the subsequent transfer claiming exemption from REET must show the REET affidavit number and the date of payment for the initial acquisition of the property.
Documentation must show the parties have met all of the above requirements. For example:
- A notarized statement, dated on or before the date of the initial purchase that the nominee acquired the property on behalf of the third-party purchaser.
- Financial documentation proving the relationship existed from the time of the original transfer.
- Financial documentation proving the source of funds used to purchase the property was provided by the third-party purchaser.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Clearing or exiting title, and addition to title - WAC 458-61A-215
Quitclaim deed given for the sole purpose of clearing title if no consideration passes are exempt. This exemption can be used to clear presumptive interest. It does not apply to transfers adding or removing people from title except for co-signing purposes only.
Transfers for the sole purpose of adding a co-signor, as a requirement by a lender to qualify for a mortgage, are exempt if no consideration is given for the transfer. The co-signor will not make financial contributions to the down payment or monthly mortgage payments.
Transfers for the sole purpose of removing a co-signor added in the above circumstance are exempt if no consideration is given for the transfer. This exemption is valid only if the intention was to go on title as a co-signor only, not as a co-purchaser, and they have not provided any funds toward the repayment of the loan or the down payment on the original purchase.
To claim this exemption, a narrative that explains the nature of the addition or removal of someone from title must be provided to the county treasurer or the department upon request. The narrative must be signed by both the grantor and grantee and attached to the REET affidavit.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Re-record - WAC 458-61A-217
The re-recording of documents to correct a legal description, change contract terms or correct the spelling of a name is exempt.
This exemption can’t be used to add or remove parties or change the transferred property. This is only for minor clerical changes.
The affidavit must refer to the prior affidavit number and the recorded document number for the prior transfer and must include a complete explanation.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Low-income housing - WAC 458-61A-218
Transfers of qualified low-income housing developments are not subject to REET.
A qualified low-income housing development means real property and improvements in which the grantor (seller) was allocated federal low-income housing tax credits.
If, due to noncompliance with federal statutory requirements, the seller is subject to recapture of its allocated federal low-income housing tax credits within the four years prior to the date of transfer, this exemption will not apply and REET is due on the transfer.
Developmentally disabled persons - Housing transfers and improvements
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Developmentally disabled persons - Housing transfers and improvements - WAC 458-61A-219
The transfer of real property by a legal representative of a person with developmental disability to a qualified entity is exempt from REET if certain conditions are met and there is no consideration for the transfer.
- The grantor’s adult child (or otherwise legally represented person) with developmental disabilities retains a life estate in the property and must be allowed to reside in the residence so long as it is safe and appropriate, as determined by DSHS.
- There is no consideration for the transfer, which may include money or anything of value, the performance of services or assumption of debt.
- The property can’t have more than four living units.
- The property must remain in continued use as supported living for persons with developmental disabilities for a period of at least fifty years.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Self-help housing - RCW 82.45.010(3)(u)
The transfer of real property by an affordable homeownership facilitator of self-help housing to a low-income household is exempt from REET.
- An affordable homeownership facilitator means a 501(c) nonprofit community or neighborhood based organization that is the developer of self-help housing.
- Low-income household may not exceed eighty percent of median household income, adjusted for household size, for the county in which the property is located.
- Self-help housing means residences provided for ownership by low-income individuals and families whose ownership requirement include labor participation. This doesn’t include rental housing provided on a commercial basis to the general public.
Disclaimer
The taxability of each transfer can only be determined after a review of all the facts and circumstances. Any exemption claimed is subject to audit for up to four years from the date of sale or submission of the affidavit to the county treasurer, whichever is later. In the case of an audit, you will be required to submit any documents the department requests to substantiate the validity of the exemption claimed.
Failure to provide requested documentation may result in denial of any exemption claimed. If the exemption is not validated, an assessment will be issued for any unpaid tax, together with applicable penalties and interest.
To claim an exemption, the WAC number, section, and subsection must be referenced on the affidavit. For more information, see the complete list of exemptions in WAC 458-61A and and valid exemption codes prior to 1/1/2023 and valid exemption codes 1/1/2023 and after.
The REET team is not able to make a pre-determination about taxability and cannot provide an exemption code for your transfer. If you are unsure about whether you qualify for an exemption you may request a written ruling. A request for written ruling could take up to 30 business days for a response.
It is important the address listed for the grantor and grantee on the affidavit are the current mailing address to be sure you receive any notifications from the department about an audit of the transfer.
Affordable housing - RCW 82.45.010(3)(v)(i)
Transfers of real property to a qualifying grantee that uses the property for housing for low-income persons and receives an exemption from real and personal property taxes are exempt. Review the linked RCW for definitions of a qualifying grantee. The completed certification form must be signed by the grantee and provided with the completed REET affidavit at the time of transfer.
There are 3 separate exemptions that fall under this category:
- Operation of existing housing on the property – RCW 82.45.010(3)(v)(i)(A)
- Within one year, the grantee must receive (or qualify to receive) an exemption from real and personal property taxes.
- The grantee intends to operate existing housing on the property.
- Within five years, the grantee must receive (or qualify to receive) an exemption from real and personal property taxes.
- The grantee intends to develop new housing on the property.
- Within three years, the grantee must receive (or qualify to receive) an exemption from real and personal property taxes.
- The grantee intends to substantially rehabilitate the premises as defined in RCW 59.18.200.
