[WSBAPT] title question

[John McCrady]

I recommend reviewing the title policy; for instance the Alta Homeowner's Policy (rev 2013) states that the

b.   This Policy also insures:

(1)  anyone who inherits Your Title because of Your death;

(2)  Your spouse who receives Your Title because of dissolution of Your marriage;

(3)  the trustee or successor trustee of Your  Trust or any Estate Planning Entity created for You to whom or to which You transfer Your Title after the Policy Date;

(4)  the beneficiaries of Your Trust upon Your death; or

(5)  anyone who receives Your Title by a transfer effective on Your death as authorized by law.

The 2006 ALTA Owner's Policy contains a similar provision.

Endorsements are available, and usually for a nominal cost, but perhaps the existing policy provides the needed protections.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98466
253-476-5721

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Mike Winslow
Sent: Thursday, June 18, 2015 2:21 PM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] title question

Which leads me to the suggestion that when deeding out to create community property from separate property, or when funding a revocable living trust, the client should be advised to consider obtaining an endorsement under their original title policy to insure the transfer.
Can one deeding separate property to create community property obtain such an endorsement, or do they need to apply for new title insurance coverage?

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com<mailto:Mike at winslegal.com>

This message is from an attorney, so it's confidential. If you are not the intended recipient, it's too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Thursday, June 18, 2015 1:35 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] title question

My choice of which deed to use for a conveyance should be governed by what warranties of title I am comfortable making.

If I am the insured under an Owner's Policy of Title Insurance, upon my conveyance of the land the coverages of my policy will continue only to the extent to which I am liable under covenants of warranty in my deed out.
Using a Bargain and Sale Deed, I warrant title only as follows:
"That the grantor was seized of an indefeasible estate in fee simple, free from encumbrances, done or suffered from the grantor, except the rents and services that may be reserved, and also for quiet enjoyment against the grantor, his or her heirs and assigns.."
So my title policy would continue to protect me to the extent that I suffer a covered loss under those warranties.  Of course under its terms the title policy would not cover me for most matters "created, suffered or assumed" by me.

On the other hand, the Statutory Warranty Deed includes more complete warranties of title, so my title policy coverages would continue to protect me for a more extensive list of matters.



John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98466
253-476-5721

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Mike Winslow
Sent: Thursday, June 18, 2015 11:41 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] title question

John,
Do you recommend use of a Bargain and Sale Deed. I have heard that this or a warranty deed will "preserve" prior title insurance coverage, whereas a QCD will affect prior title coverage. I understand that there is no new title coverage invoked by use of a warranty deed.
Mike

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com<mailto:Mike at winslegal.com>

This message is from an attorney, so it's confidential. If you are not the intended recipient, it's too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Thursday, June 18, 2015 10:46 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] title question

If you are going to record the Community Property Agreement there is no need to also record a deed.
If there are aspects of the Agreement you do not wish to make public, then recording the deed makes sense.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98466
253-476-5721

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Sharon Rutberg
Sent: Thursday, June 18, 2015 9:36 AM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] title question

Hello, Listmates -

Clients are a married couple. He purchased the house they live in before they married and only his name is on the title. She helps pay the mortgage. They wish to have it treated as community property.

We are doing a simple Community Property Agreement stating that the house is their community property (as well as clarifying the status of some other property). Do you see any compelling reason also to create a new deed naming them both as owners? I suppose he would quitclaim to the two of them as a married couple.

As always, thanks for your wise guidance.

Sharon

Sharon C. Rutberg
Attorney at Law
1718 NW 56th Street, Suite 304
Seattle, WA 98107
Website: www.sharonrutberglaw.com<http://www.sharonrutberglaw.com>
206-409-2604
email at sharonrutberglaw.com<mailto:email at sharonrutberglaw.com>
Washington State Bar #47055
D.C. Bar #420576

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