[WSBAPT] Title Co - indemnity agreement

Thu May 6 09:34:14 PDT 2021

Change title companies?

Heather S. de Vrieze
Attorney-at-Law
[cid:image001.jpg at 01D7425A.E65B9350]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Donna Calf Robe
Sent: Thursday, May 6, 2021 9:13 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Title Co - indemnity agreement

That’s my standard letter. This is the first time that it’s not enough.
Donna

On May 6, 2021, at 9:11 AM, Heather de Vrieze <heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>> wrote:

I have generally addressed this by providing the standard letter with a revision stating essentially: “The estate will be subject to Washington State Estate Tax and the Personal Representative is taking the necessary steps to file and pay the tax. The sale of this property will increase estate liquidity, ensuring amply funds to timely pay any taxes.”

It has worked several times.

Heather

Heather S. de Vrieze
Attorney-at-Law
<image002.jpg>
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
Click here to connect with de Vrieze | Carney on Facebook:   <https://www.facebook.com/DeVriezeCarney>
<image003.png><https://www.facebook.com/DeVriezeCarney>

For the latest information regarding firm operations and precautions in light of the Coronavirus please visit our firm’s website: www.WestSeattleLaw.com<http://www.westseattlelaw.com/>.

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Donna Calf Robe
Sent: Thursday, May 6, 2021 8:16 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Title Co - indemnity agreement

List mates:
I recently opened a probate and soon after opening, the PR found a buyer for the estate owned house and closing is schedule for today. A week ago the title company requested the usual letter that there were no taxes owing.  The estate will owe WA estate tax of I’m guessing about $55k, but there are plenty of funds to pay the tax.  The title company requested the PR sign a very broad indemnity agreement in both her personal and individual capacity.  She is not a beneficiary.  They initially wanted other beneficiaries to sign as well, but there are many and some are minors so they dropped that request.  I advised her against signing it.  The title company then send another indemnity agreement yesterday afternoon, which is a little less broad, but not much, and includes an agreement that they can hold $55k back until the taxes are paid (which may be 18 months), and they can use the $55k to offset any of their damages, without notice.

I have not encountered a title company demanding this type of indemnification or holdback.  Usually they are satisfied when I include in the tax letter that the estate has sufficient funds to pay the tax.  I’m inclined the tell the PR to use a different title company, but the PR is anxious to get the sale completed.
Have others run into this?  I don’t know if its now a standard practice, in which case going to another title company may not help.
Thank you,

Donna

Donna M. Calf Robe
Attorney
Brothers & Henderson, P.S.
2722 Eastlake Avenue East, Suite 200
Seattle, Washington 98102
Phone: (206) 324-4300 x113
Fax: (206) 324-3106
e-mail:  donnac at brothershenderson.com<mailto:donnac at brothershenderson.com>
www.brothershenderson.com<http://www.brothershenderson.com/>
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