James is a Washington real estate broker representing a buyer in a $750,000 purchase. The buyer asks James whether they should budget for REET as part of their closing costs. Which response from James is most accurate under Washington law?
Correct Answer
B) No, REET is the seller's primary statutory obligation, though the parties may contractually agree otherwise
Under RCW 82.45, the seller is primarily responsible for paying REET in Washington. As a buyer's representative, James should correctly inform his client that REET is the seller's statutory obligation. However, James should also note that the purchase agreement could contractually shift this obligation to the buyer if both parties agree, which is why buyers should review the contract terms carefully. By default, without a contractual agreement to the contrary, buyers do not pay REET.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
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