Real estate excise tax (REET) is a tax on the sale of real property. Real property, or real estate, means any interest, estate, or beneficial interest in land.Escrow accounts are typically used for holding the down payment and closing costs. Through the process of a closing, your escrow officer will prorate property taxes to the date of the closing. Escrow Officer: Escrow instructions, documents and forms to be filled out. Find out what taxes you may pay on the sale of a house in Washington state and how to avoid paying too much. In Washington, buyers and sellers split the escrow fees in half. Here are a couple escrow issues that can cause problems for home sellers who are planning to close near a property tax due date. Due to a change in state law, beginning in 2020 all taxpayers receive a full paper statement, including those whose property taxes are paid through escrow. This is the law known as "FIRPTA"- the Foreign Investment in Real Property Tax Act.
