Under Washington State law, who is primarily responsible for paying the Real Estate Excise Tax (REET) at the time of a property sale?
Correct Answer
B) The seller, because the tax is imposed on the transfer of title
Under RCW 82.45, Washington's Real Estate Excise Tax is imposed on the seller as the party transferring title. The seller is primarily responsible for paying REET before the deed can be recorded by the county. This is a Washington-specific rule that candidates frequently confuse with buyer-paid transfer taxes used in other states.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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