[WSBAPT] Is this showing up on the listserv?

[John McCrady]

I would recommend checking out  whether Garn-St. Germaine prohibits the exercise of the due on sale.

(d)Exemption of specified transfers or dispositions With respect to a real property loan<https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-1202940583-2124459218&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933> secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home<https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-2070006528-2124459219&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933>, a lender <https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-1106367012-2124459217&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933> may not exercise its option pursuant to a due-on-sale clause <https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-2106257779-2124459216&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933> upon—
(1)
the creation of a lien or other encumbrance subordinate to the lender<https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-1106367012-2124459217&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933>’s security instrument which does not relate to a transfer of rights of occupancy in the property;
(2)
the creation of a purchase money security interest for household appliances;
(3)
a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;
(4)
the granting of a leasehold interest of three years or less not containing an option to purchase;
(5)
a transfer to a relative resulting from the death of a borrower;
(6)
a transfer where the spouse or children of the borrower become an owner<https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=12-USC-106164915-1510435011&term_occur=999&term_src=title:12:chapter:13:section:1701j%E2%80%933> of the property;


John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>
[PRESIDENTS' DAY]


Beginning July 26, 2021, recording fees for most documents recorded in Washington will increase by $100<https://www.piercecountywa.gov/DocumentCenter/View/105275/Recording-Fee-Schedule-Effective-Jul-25-2021->. Please be sure to collect recording fees accordingly. Due to the above increase, our Reconveyance fees will also be increased by $100.00

WARNING-FRAUDULENT FUNDING INSTRUCTIONS
Email hacking and fraud are on the rise to fraudulently misdirect funds.  Please call your escrow officer immediately using contact information found from an independent source, such as the sales contract or internet, to verify any funding instructions received.  We are not responsible for any wire sent by you to an incorrect bank account.


From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jayne Gilbert
Sent: Tuesday, February 15, 2022 5:45 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Is this showing up on the listserv?

Contract to Buy RP w/ Mortgage and Taxes Owed

I sent this to this listserv yesterday and did not get any
feedback. Will somebody please let me know whether
this question actually made it to the site?

I have clients who have 2 homes on one parcel. Their
son and wife live in the little house. They want to sell the
property to the son and switch houses.

Correction There are significant taxes owed on the property
and a mortgage.

The son is selling his out of state home and plans to
make a significant down payment and then they will be
making monthly payments to his parents.

Generally: Will recording the contract make the mortgage and
taxes due on sale. (plz set aside reviewing the mortgage
language first).

I have mentioned reserving a life estate in the property
for the parents-they were not warm on the subject I also
discussed a TODD and a Will. They do intend to give all
their interest in the property upon the death of the survivor.

Thanks
--
*************************************************
Jayne Marsh Gilbert
Gilbert and Gilbert Lawyers, PS
(360) 336-9515
*************************************************



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