Real Estate Law Practice

We represent individuals, corporations, lenders, and institutions in a full spectrum of real estate, including commercial and residential purchase and sale agreements, acquisitions, listing agreements, title issues, and escrow matters. We also assist clients in navigating and structuring commercial and residential lending and banking transactions, deeds of trust, loan agreements, liens, seller-financed lending, and foreclosure and loan default workouts.

Real Estate Transactions

We have successfully handled a wide variety of real estate transactions, including:

• Residential purchase and sale agreements
• Commercial purchase and sale agreements
• Residential/Commercial lending and banking transactions
• Title Issues
• Escrow Matters
• Seller-financed lending
• Listing agreements
• Deeds of trust
• Acquisitions and Sales
• Liens affecting real estate
• IRC 1031 Exchanges
• Removal of Mortgages and Deeds of Trust from the title after a Bankruptcy

Need Help Acquiring and Selling?

We counsel clients in the acquiring and selling all sectors of income-producing assets and residential transactions. In addition to preparing the core transaction documents, such as the purchase and sale agreement and related closing documents, we assist our clients in performing due diligence relating to the acquisition or disposition of property, such as (i) reviewing all title matters relating to the property; (ii) issues concerning Phase 1 reports, surveys, C, C&Rs, site analysis, and inspections; (iii) reviewing all leases and preparing estoppel certificates; (iv) structuring transactions to comply with I.R.C. Section 1031 Exchanges; (v) disclosure requirements and exemptions; (vi) real estate excise tax issues and (iv) consulting with our clients regarding relevant tax concerns. We also assist clients regarding post-closing issues such as reconciliation of lease payments, property management agreements, lender issues, and prepayment penalties.

We have substantial experience assisting property owners with sales to current tenants. These transactions have unique aspects regarding the termination of an existing lease, property condition, allocation of closing costs, and appraisal issues.

Current Issues In Seattle Real Estate Sale Law:

When does a rental agreement need to be notarized?

To be valid for the entire lease period, if a lease is for more than one year, it must be notarized. If a lease is longer than one year and not notarized, it may be interpreted as only a month-to-month lease, not a one-year lease.

Are Electronic Signatures Valid?

An electronic signature is an electronic process to signify a person’s approval of terms and conditions in an electronic contract document. They are valid for signing most documents in Washington. Electronic signatures come in many different forms and utilize many other technologies; they can be a facsimile signature, an electronic screen that accepts a handwritten signature, or a “digital signature” tied to a digital identification or certificate.

In a real estate transaction, the parties must sign and initial many purchase and sale agreement pages. Traditionally, a real estate broker or attorney would print out all of the contract documents and physically deliver them to their client to obtain their signature. More recently, a real estate broker or attorney can send the documents to their client using a digital signature service such as DocuSign or Authentisign. This allows the client to sign a document without printing the paperwork or physically signing the contract. Additionally, a client can sign the contract form anywhere globally, making it an efficient and effective method of signing documentation.

Real Estate Excise Tax.

In Washington State, the sale of real estate is subject to a real estate excise tax. The seller usually pays this tax and is assessed at closing as a percentage of the sales price. Commencing in 2020, the tax rate of the excise tax changed to a tiered rate structure from a flat rate structure based on the value of the properties subject to the tax. The excise tax rate increases as the sales price of the subject property increases. Additionally, Washington State

has an unusual real estate excise tax provision that requires the excise tax to be paid on the entire value of the property if 50% or more of the ownership interests in a legal entity that owns the subject real estate is transferred. Certain exemptions from the real estate excise tax may apply to real estate sales.

Contact Seattle Real Estate Law Group

At Sternberg Thomson Okrent & Scher, our attorneys and staff have the necessary knowledge and skill to advise our clients in commercial and residential real estate matters. Ideally, our clients engage us at the beginning of a real estate matter to initially negotiate and structure the transaction or case to minimize the risks and maximize the benefits to our clients. Contact our Seattle office today to schedule a consultation.

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