[WSBAPT] title question

[Sharon Rutberg]

Thank you, everyone, for so much useful information. It does sound like
consulting with the title insurer would be an important step. 

 

Best wishes,

Sharon

 

Sharon C. Rutberg

Attorney at Law

1718 NW 56th Street, Suite 304

Seattle, WA 98107

Website:  <http://www.sharonrutberglaw.com> www.sharonrutberglaw.com 

206-409-2604

 <mailto:email at sharonrutberglaw.com> email at sharonrutberglaw.com

Washington State Bar #47055
D.C. Bar #420576

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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Thursday, June 18, 2015 3:20 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] title question

 

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

 

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] 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] 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

 

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] 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] On Behalf Of Sharon Rutberg
Sent: Thursday, June 18, 2015 9:36 AM
To: 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 

206-409-2604

email at sharonrutberglaw.com

Washington State Bar #47055
D.C. Bar #420576

NOTICES
The contents of this message and any attachments may be protected by the
attorney-client privilege, work product doctrine, and/or other applicable
protections. If you are not the intended recipient or have received this
message in error, please notify the sender and promptly delete the message.
Thank you for your assistance.

 

IRS Circular 230 Disclaimer: To ensure compliance with requirements imposed
by the IRS, we inform you that to the extent this communication contains
advice relating to a Federal tax issue, it is not intended or written to be
used, and it may not be used, for (i) the purpose of avoiding any penalties
that may be imposed on you or any other person or entity under the Internal
Revenue Code or (ii) promoting or marketing to another party any transaction
or matter addressed herein.

 

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