[WSBAPT] Recorder's office issue

[John McCrady]

It is not that a title company wouldn’t record the deed, the issue I see is whether the title company can be convinced that the deed was delivered before death.  If the title company cannot be convinced that the deed was delivered before death, then the title company would not be willing to insure the title.

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 Karl Flaccus
Sent: Tuesday, April 18, 2017 6:06 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Recorder's office issue

Well, Eileen, wouldn’t a title company record the unrecorded deed?  To not record it is to send 25% of the house off in another direction, against the wishes of the grantor and grantee.

Karl

FLACCUS LAW
7010 35th Ave. N.E.
Seattle, Washington  98115
206 523-0297

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Peterson, Eileen
Sent: Tuesday, April 18, 2017 5:54 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Recorder's office issue

I agree.  However, be aware:  a title company is unlikely to accept a deed that is unrecorded at death.  But, that is a separate issue.  Good luck! Eileen

Eileen S. Peterson
Attorney at Law
T 253 620 6419
F 253 620 6565

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Tuesday, April 18, 2017 5:27 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Recorder's office issue

I agree, the deed is a valid conveyance at time of delivery to A in 2005. KCR is wrong for suggesting inheritance as the proper exemption, and DOR is wrong for suggesting the conveyance was invalid merely because not recorded. Recording is just notice to third parties, and has nothing to do with validity of conveyance.

Is it a gift? Since they were married at that point, could you use WAC 458-61A-203, to establish separate property in one spouse? http://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-203

For signatures on the REETA, I agree you have PR signing on behalf of Grantee A's Estate, but I think you need a valid representative for B to sign as Grantor--B's child, perhaps? I'm not sure about PR's authority to act as agent for B's separate property Estate.

If B's child is not cooperative, perhaps you could get A appointed as PR of B's estate merely for that purpose. It's a hassle but could work. (Might analyze potential conflict of interest, as PR of B's estate would have fiduciary duty to B's heirs.)

What's the hypothetical value of B's heir's 25% interest in the real estate? Perhaps least expensive would be to pay B's heir something to sign the REETA, plus an affidavit of no probate or something similar, or show that B is the sole person with any hypothetical interest in B's estate.

If KCR or DOR still balks at allowing the REETA, I think you need to take it up the chain at DOR to a lawyer there.

Alternatively: perhaps file a quiet title action alleging the existence of the unrecorded deed, name B's heir as defendant, and get a judgment quieting title in A's estate (or in A's heirs if you're ready to distribute).

All my off-the-cuff thoughts; I haven't tried any of these solutions myself.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Karl Flaccus
Sent: Tuesday, April 18, 2017 4:16 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Recorder's office issue

B has a child.   A and B (unmarried) buy a house in Seattle as tenants in common.  Later they marry.  At the time of marriage the two halves of the house are separate property.   B has an illness, and signs a quit claim deed to A in 2005.  Everything is proper about the quit claim deed.   B dies intestate in 2012.  A does not record the quit claim deed.  A dies in 2016.  I represent the personal representative of A’s estate.  Nothing goes in A’s estate to B’s child.

The PR brings me the unrecorded quit claim deed.  We complete a REETA and a supplemental gift form.  On both forms the PR signs as PR for A, and merely as representative for B.

King County Recorders office rejected the deed, stating in writing “if both parties are deceased, the inheritance/202 would make more sense. Review 202(6f) and provide copy of letters testamentary.”   We called to say, no this was a gift at the time, it was not an inheritance, and to contend that it was would be false.  The recorder’s office was stumped and transferred to the Department of Revenue.  The Department of Review representative stated to my paralegal that although she was not a lawyer, she believe the deed was an “invalid conveyance” because it was not recorded at the time, and therefore they would not record the deed under any circumstances because A and B were not alive to sign the supplemental statement.

They are wrong to not record the deed.  Deeds merely need to be “in writing, signed by the party bound thereby, and acknowledged by the party” before a notary.  It is risky to not record a deed, but a deed is valid at the time of execution.

Any ideas out there concerning what hoops we need to jump through to get this deed recorded?

Thanks.

Karl

FLACCUS LAW
7010 35th Ave. N.E.
Seattle, Washington  98115
206 523-0297
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170418/73af573d/attachment.html>