Is REET a buyer closing cost?
Not under the state statute: RCW 82.45.080 identifies REET as the seller’s obligation. A buyer should not automatically add the seller’s tax to a purchase budget. Review the signed purchase agreement and final settlement documents, however, because negotiated transaction terms and unusual transfers can affect how money is shown at closing. Washington Legislature — RCW 82.45.080 ↗
Why should the buyer verify payment?
Washington law says REET, interest and penalties are a specific lien on the property from the time of sale until paid. Before recording, ask the escrow or title team to identify the REET charge, who will remit it and whether the transaction is claiming an exemption. This is a title and closing check, not a reason to estimate the seller’s tax yourself. Washington Legislature — RCW 82.45.070 ↗
What paperwork should you expect?
The Department of Revenue’s rules must provide a real estate excise tax affidavit verified by both seller and buyer, or their agents, for most transactions. Ask your closing team when you will receive the affidavit or settlement record and confirm that the names, price and claimed treatment match the transaction before signing. Washington Legislature — RCW 82.45.150 ↗
What if the transfer is unusual?
Do not assume that a family transfer, gift, entity transfer or other nonstandard transaction is taxable or exempt based on a label alone. The facts and the exemption documentation matter. Have the escrow, title or tax professional identify the applicable rule in writing. Mortgage Lending Group LLC provides mortgage education, not tax or legal advice.
How should a Seattle-area buyer plan cash to close?
Start with the buyer figures on the Loan Estimate and later Closing Disclosure, then reconcile the deposit, down payment, lender or seller credits, prepaid items and closing charges. Keep the seller’s REET separate unless your written transaction documents say otherwise. If a number changes, ask the closing team to explain the change before sending funds.
PUT IT INTO PERSPECTIVE
An example, not an offer
Hypothetical Washington purchase, not a quote or client transaction: a buyer has $55,000 available and the final buyer cash-to-close figure is $42,000, leaving $13,000 ($55,000 − $42,000). The seller’s REET appears separately on the settlement statement. The buyer should confirm that escrow will remit it, but should not subtract that seller charge again from the $13,000. Actual documents and negotiated terms control.
Plan buyer cash to close →Related questions
Check the original guidance
- Washington Legislature — RCW 82.45.080 ↗
- Washington Legislature — RCW 82.45.070 ↗
- Washington Legislature — RCW 82.45.150 ↗
Requirements and availability can change. Confirm the program and lender terms for your application.