Another Sneaky Tax 
By Jim Palmer Jr.

Starting July 27, 2025, any buyer of a residential property, who uses a loan to purchase, must pay a new $80 fee that bureaucrats call the Foreclosure Prevention Fee.  The intent of this sly new tax is to expand and fund the Foreclosure Mediation Program which outlines specific rights borrowers have during foreclosure proceedings, including access to a statewide hotline for foreclosure and homeownership assistance, housing counseling services, civil legal aid, and mediation services.

Closing agents must collect the Foreclosure Prevention Fee on any loan originated for personal, family or household use, but a third party (lender, seller, etc) is allowed to pay the fee on behalf of the borrower.  The creditor must disclose the Foreclosure Prevention Fee during the normal disclosure process to the borrower that details all of the fees they have to pay, including the cost of the loan prior to closing.

The only exception to this fee is to borrowers over the age of 61 who are securing a reverse mortgage either as a refinance or a new purchase.
One fact that I find interesting is that the Washington Department of Revenue is currently reviewing the language of this legislation because it is unclear whether closers are obligated to collect a Washington State sales tax on that $80 fee.  Now isn’t that something?!  A tax on top of a tax! What a novel idea! 

This article isn’t really intended to be a rant about high taxes in this state, but I must point out that this type of a “fee” is really a sneaky way to increase revenue for pet programs.  I call it sneaky because it is not labeled as a tax and is only levied against borrowers who may only purchase a home once in their lifetime.  There typically is no general outrage from the public against these types of taxes because the general population doesn’t really feel it in their day to day lives, and yet the totality of these burdens are “grievous to be borne.”

Another example of a devious toll that impacts the real estate industry is the huge hike to recording fees that happened a couple years ago.  The recording fee for a one page document in a real estate transaction is $330.  The county clerk who spends a few seconds recording that document doesn’t make that much in wages!  Instead, those exorbitant fees covertly fund eviction prevention services, landlord mitigation programs and preservation and accessibility of historic documents (Home Security Fund Account and Affordable Housing for All Account).

Past Articles

Easement, a Property Right
Property rights seem to be an ongoing hot topic since there are many people.... MORE...

 

Apparisal vs Market Analysis
Many property owners find the need to have a professional .... MORE...

Bountry Disputes
Some property owners are alarmingly indifferent about dealing with boundary disputes .... MORE...

Don't Give it Away 
Designated Brokers (the firm’s boss) periodically receive calls after closings from disgruntled buyers or their agents.... MORE...

Don't Give it Away 
The airwaves and internet reels these days are full of persistent ads by predatory home buyers.... MORE...

 

Avoid Expensive Mistakes
A few years ago a property owner became entangled in an unfortunate.... MORE...

 

Home Buying Qualifications
Selling a home can be a process fraught with frustration.... MORE...

 

Black Mold?
So, you have black mold in some of the corners of your house?.. MORE...

 

Why Purchase Title Insurance?
In a recent personal transaction where a buyer was purchasing... MORE...

Why Experts Get Paid More
After moving around the world a lot, a middle-aged woman  felt she knew a thing or two about selling.. MORE...

 

 

Attorneys, A Vital Resource
While reading a Client Review concerning a closed transaction, I noticed... MORE...

Is Your County Looking Out for You?
During a recent residential acreage sale, a well was tested for quality ... MORE...

Buyer Misconceptions
In a recent case, a buyer fired their broker because they misunderstood the buying process and ... MORE...

Buyer Expectations Unrealistic?
After several years of a seller’s market where sellers had most of the... MORE...

Accurate Market Anaylsis
Brokers are often asked by potential sellers to give a valuation of their property, especially early  in the year before the market... MORE...

Good News for USDA Loans
Many buyers know that there are zero-down-payment loans available for Veterans .... MORE...

Homeowners Insurance
Beginning a successful real estate career is quite difficult for most new brokers for a lot of reasons.... MORE...

Homeowners Insurance
One of the burdens that buyers are facing in the coming year is the rising cost of homeownership... MORE...

Top 6 Real Estate Issues
The last two years has seen an unusual lull in the real estate market.  Instead of a typical... MORE...

Artesian Wells
There are some misconceptions concerning water wells that have been perpetuated for years, one of which concerns artesian wells. The fact that property has an... MORE...

Contract Performance
Invariably after real estate transactions are closed there are issues that surface where one of the principles is not happy because the contract... MORE...

Thinking of Buying a Home in the Country?
If you are thinking about buying rural property this year,... MORE...

Bird's-Eye View
Modern technology has provided many tools that have enhanced our ability to work smarter ... MORE...

Will Your Property Sell in the Winter?
Most sellers remove their house or property  from the market in the winter... MORE...

Rules of Engagement?
Buyers competing to purchase real estate can be frustrated at best and exasperated.. MORE...

Rules of Engagement?
Buyers competing to purchase real estate can be frustrated at best and exasperated.. MORE...

Truth Telling
Have you ever been around someone who always starts out their sentences with, “Honestly“... MORE...
 

Flush and Forget
As my wife can attest, I love a good western movie! Many of my favorites romanticize the idea of the... MORE...

Open Range
Most people think it is reasonable to expect a seller to be honest in disclosing... MORE...

Disclosure Requirements
Most people think it is reasonable to expect a seller to be honest in disclosing... MORE...

When Weather Becomes the Deciding Factor
Out-of-area-buyers often only look at property during seasons of the year when there are ...MORE...

CCR's
The acronym above stands for Covenants, Conditions and Restrictions and usually refers to the  ...MORE...

Best Practices
For over 100 years Realtors® have diligently worked to conform to the best business   ...MORE...

What Stays?
Once during a pre-closing walk through of a recently vacated house I noticed that most of the light bulbs were missing along with  ...MORE...
 

Quit Claim vs. Warranty Deed
Quit claim deeds are commonly used when parents or ...MORE...

Why Market to a Bunch of Realtors?
Once in a local radio blitz by a new innovative discount brokerage, they mocked the strategy of  ...MORE...

Does the Seller Benefit from a Well Represented Buyer?
The current environment in the real estate industry can be fraught with many pitfalls and ...MORE...
 

Is Cash Really King?
It is a common practice for loaded investors to wave cash (figuratively) in the face of a seller...MORE...

No Trespassing!
Owning property in this country is one of our basic rights that we should not take for granted...MORE...

Trespassing
Brokers are often asked by property owners to prepare a Comparable Market Analysis (CMA) some of the reasons a property..MORE...

Market Analysis
Brokers are often asked by property owners to prepare a Comparable Market Analysis (CMA) some of the reasons a property..MORE... 

Aerial Photos are a Great Tool
Some time ago one of my agents brought a new listing into my office to get my opinion.  I quickly scrutinized the listing data..MORE... 

Common Sense
In a rerun of the TV classic, Leave It To Beaver, I was tickled by one of the interactions between Wally..MORE... 

Does a Buyer Have Recourse?
With most home purchases the buyer negotiates the opportunity to perform a final walk through..MORE... 

The Endowment Effect
In a real estate transaction the stakes are usually high, whether it’s economic...MORE... 

Times have Changed
A recent class action lawsuit is now settled and ratified by the court ...MORE... 

 

Your Manufactured Home
Manufactured homes have been around for many years now and may get a bad rap...MORE... 

Accurate Market Analysis 
Brokers are often asked by potential sellers to give a valuation of their property,...MORE... 

 

 

Price Reductions, on the Rise
In a recent blog by a reputable broker a statement was made that...MORE... 

 

Crops and Property Sales
In the fundamental real estate course that every licensee must pass  ...MORE... 

 

Blame the Government?
It seems fascinating that many US citizens think our POTUS is like a king  ...MORE... 

Easements, A Property Right
Property rights seem to be an ongoing hot topic since there are many people  ...MORE... 

Low Appraisal?
There are basically two processes of qualification when a buyer decides to purchase ...MORE... 

Title Hiccups
After many years in the real estate business, it still surprises me when property owners are unaw ...MORE... 

What Stays with the House?
Many times after a sale is completed or at the final walk-through by the buyer just prior to ...MORE... 

Big City Broker Syndrome
A seller recently fired a big city broker who had done a great job prepping for an upcoming ...MORE... 

The Power of MLS
For years the Multiple Listing System that is used by real estate brokers across the country ...MORE... 

Another Permit?
The recent sale of a quality manufactured home reminded me that there is a gap in understanding concerning the proper permitting that is required for installing or altering manufactured home was installed ona  city ...MORE... 

 

Seller Costs
As a real estate professional, I have often been asked to provide a Market Analysis for potential selle ...MORE... 

Buyers, Don't Fool Yourself
Recently a buyer traveled from the west side of our state to view several properties hoping to identify one ...MORE... 

Caveat Emptor
In the past, real estate buyers took more risk than in these modern times. Improved business practices now demand full disclosure ...MORE... 

Buyers, are You Prepared to Pay your Own Broker?
Recently the NAR (National Association of Realtors) agreed ...MORE... 

The Bugs are Here
Spring is here and the bugs are out! This is one part of country living that can be difficult! ...MORE... 

Adverse Possession
The other day an inquiry came across my desk concerning a fence encroachment ...MORE... 

Do I Have to Tell?
What if someone died in a home?  Is the real estate broker obligated to disclose this information? ...MORE... 
 

The Best Time to Plant a Tree
This March I attended an annual community Crab Feed in ...MORE... 

Is It Illegal to Record Audio on Ring Cameras?
We live in a world that relies more and more on artificial intelligence which includes having our actions monitored in many settings...MORE... 

More about Wire Fraud
Is wire fraud still a thing in today’s real estate environment?  According to ...MORE... 
 

Buyer Brokerage Services Agreement
Times have changed for buyers in the real estate industry ...MORE... 

Boundry Dispute? Not Yet.
One of the questions for sellers, on the mandated State disclosure statement, asks ...MORE... 

Should You Pass on the Home Inspection?
 In a recent real estate transaction a buyer was convinced by ...MORE... 

Realtor Code of Ethics - Excerpts
It is common for some water wells to experience loss of water quality over time ...MORE... 

Need to Rehab Your Well?
It is common for some water wells to experience loss of water quality over time ...MORE... 

Do You Have to Rent to a Criminal?
Those in the real estate industry who manage rentals are careful to adhere to ...MORE... 

Landlocked 
For the second time in a week I’ve come across the situation where ...MORE... 

 

Broker Compensation Conflicts
For the second time in a month Realtors® have been accused in a law...MORE... 

Over Priced?
One day I received a call from a buyer who was expressing interest in a property that...MORE... 

Contract Enforcement
When something goes awry after the close of a real estate transaction, the first person on the list ...MORE... 

Best Practices
For over 100 years Realtors® have diligently worked to conform to the best business practices of the times. Even the term, Best Practices suggests that such methods are continually evolving and improving ...MORE... 
 

Manufactured Homes
Manufactured homes have been around for many years now and may get a bad rap sometimes. Since ...MORE... 
 

Will Your Property Sell in the Winter?
Most sellers remove their house or property from the market in the win...MORE... 
 

Could Legal Verdict Change Commisions?
A jury recently handed a loss to the National Association of Realtors® in a case where the complaint...MORE... 

Benefit to Buyers
On January 1, 2024, major changes to the Law of Agency will go into effect...MORE... 
 

Agency Law Clarified
Since 1996 the State of Washington passed a new statute that defined and clarified agency law...MORE...