[WSBAPT] Requirements for recording community property agreements

[Mike Winslow]

I am posting this to two lists because the information is germane to real
property and probate practice. Maybe not news to some of you, but it was to
me.
 
Recently was assisting client with recording a community property agreement
and changing the record ownership of the property with the Skagit County
Treasurer.
We recorded the CPA, then sent client to the treasurer with the recorded
document to request the name change on the account.
 
The Treasurer's clerk checked the record of ownership in their system, which
showed property still in name of decedent and his first wife. Decedent was
divorced 20 years ago. The divorce attorney did not record a Quit Claim
Deed, nor did they record the decree, as that was not common  practice is
Skagit 20 years ago. So clerk told client they must obtain a deed from the
ex-wife, instead of simply requesting a copy of the decree of dissolution.
This clerk at the Skagit Treasurer's office is very by the book, (down to
the gnat's eyelash as it were).
 
I called the clerk and they were insistent that my client needed a deed to
change the record ownership with the Treasurer and Assessor. Also required
would be an Excise Tax affidavit for each "change of ownership", meaning the
Deed and the CPA would both need REETAs for the Treasurer to "recognize" the
transfer. Clerk claims they have been doing things this way for last four or
five years. We have processed recording CPAS and Affidavits of Community
Property (DOR Form) for several years without using REETAS. The Auditor has
no problem taking them for recording. But the Treasurer's clerk claims they
don't recognize these recordings to change record ownership on tax rolls.
 
After explaining to the clerk that the decree of dissolution was sufficient
to transfer title to decedent husband when he divorced first wife, the clerk
agreed we could submit a REETA with the decree (we are obtaining a certified
copy) which must be recorded. They would put the excise tax stamp on it,
then we could record the Decree. That's step one, to put Husband in title.
Then, step two, we are required to submit the CPA to the Treasurer with a
REETA for them to stamp the CPA (which we already recorded). Only then will
they recognize the recorded CPA and change the ownership to the surviving
second wife. They won't recognize the CPA, even though it is recorded
because it was processed without an Excise Tax stamp on it.
 
This was a lot of hoops, so called the DOR and tried to reach Steve Bren. He
has moved to another department at DOR, so spoke with "Pam". The facts of
this situation were outlined. She confirmed the requirement that all
documents affecting ownership require separate REETAS for the DOR and
Treasurer to recognize the recordings.
 
This approach may not be the same county to county, but the DOR is
supporting this position, so be forewarned changes may be coming in other
counties.
 
If anyone knows of contrary law or WACS would be interested.
 
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.
 
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