# WAC 458-61A-103: WAC 458-61A-103. Transfers involving an underlying debt

> Washington · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_103

## Section

- **Citation:** WAC 458-61A-103
- **Heading:** WAC 458-61A-103. Transfers involving an underlying debt
- **Jurisdiction:** Washington
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Washington Administrative Code / Title 458 / Chapter 458-61A / Section 458-61A-103

## Text

(1) Introduction. The real estate excise tax applies to transfers of real property when the grantee relieves the grantor from an underlying debt on the property or makes payments on the grantor's debt. The measure of the tax is the combined amount of the underlying debt on the property and any other consideration.
(2) Consideration. Consideration includes the amount of any lien, mortgage, contract indebtedness, or other encumbrance remaining unpaid on the property at the time of sale. It does not include the amount of any outstanding lien or encumbrance in favor of the United States, the state, or a municipal corporation for taxes, special benefits, or improvements. RCW 82.45.030 (3).
(3) Examples. This rule includes a number of examples that identify a set of facts, and then state a conclusion. These examples are only a general guide. The tax results of other situations must be determined after a review of all facts and circumstances.
(a) Example 1. Yen transfers property to Lee that is subject to an underlying debt (i.e., mortgage). Lee agrees to make all future mortgage payments on Yen's debt, but gives no other consideration for the property. Yen owes real estate excise tax on the amount of the underlying debt. Lee's payments on the underlying debt relieve Yen of her debt obligation. Therefore, Yen receives consideration.
(b) Example 2. Same facts as above, except Lee also paid Yen $10,000 in addition to making the mortgage payments. In this circumstance, the measure of the real estate excise tax is the amount of the mortgage outstanding at the time of sale, plus the additional consideration paid of $10,000.

## Nearby sections

- [WAC 458-61A-100 WAC 458-61A-100. Real estate excise tax — Overview](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_100.md)
- [WAC 458-61A-101 WAC 458-61A-101. Taxability of the transfer or acquisition of the controlling interest of an entity with an interest in real property located in this state](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_101.md)
- [WAC 458-61A-102 WAC 458-61A-102. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_102.md)
- [WAC 458-61A-103 WAC 458-61A-103. Transfers involving an underlying debt](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_103.md)
- [WAC 458-61A-104 WAC 458-61A-104. Assignments](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_104.md)
- [WAC 458-61A-105 WAC 458-61A-105. Mobile and floating home sales](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_105.md)
- [WAC 458-61A-106 WAC 458-61A-106. Sales of improvements to land, leases, and leases with option](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_106.md)
- [WAC 458-61A-107 WAC 458-61A-107. Option to purchase](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_107.md)
- [WAC 458-61A-108 WAC 458-61A-108. Contractor](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_108.md)
- [WAC 458-61A-109 WAC 458-61A-109. Trading/exchanging property and boundary line adjustments](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_109.md)
- [WAC 458-61A-110 WAC 458-61A-110. Relocation service—Two-deed process](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_110.md)
- [WAC 458-61A-111 WAC 458-61A-111. Easements, development rights, water rights, and air rights](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_111.md)
- [WAC 458-61A-112 WAC 458-61A-112. Mineral rights and mining claims](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_112.md)
- [WAC 458-61A-113 WAC 458-61A-113. Timber, standing](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_113.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_61A_103. Check the current official text before relying on it. Not legal advice.