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<p class="MsoNormal">I would recommend checking out whether Garn-St. Germaine prohibits the exercise of the due on sale.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span class="num"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333;background:white">(d)</span></b></span><span class="heading"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;font-variant:small-caps;color:#333333;background:white">Exemption
of specified transfers or dispositions </span></b></span><span class="chapeau"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333;background:white">With respect to a <a href="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"><span style="color:#0068AC">real
property loan</span></a> 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 <a href="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"><span style="color:#0068AC">residential
manufactured home</span></a>, a<a href="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"><span style="color:#0068AC"> lender </span></a>may
not exercise its option pursuant to a<a href="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"><span style="color:#0068AC"> due-on-sale
clause </span></a>upon—</span></span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><a name="d_1"></a><span class="num"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">(1)</span></b></span><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">the creation of a lien or other encumbrance subordinate to the <a href="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"><span style="color:#0068AC">lender</span></a>’s
security instrument which does not relate to a transfer of rights of occupancy in the property;<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><a name="d_2"></a><span class="num"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">(2)</span></b></span><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">the creation of a purchase money security interest for household appliances;<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><a name="d_3"></a><span class="num"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">(3)</span></b></span><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><a name="d_4"></a><span class="num"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">(4)</span></b></span><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">the granting of a leasehold interest of three years or less not containing an option to purchase;<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><a name="d_5"></a><span class="num"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">(5)</span></b></span><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">a transfer to a relative resulting from the death of a borrower;<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><a name="d_6"></a><span class="num"><b><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333">(6)</span></b></span><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333;background:yellow;mso-highlight:yellow">a transfer where the spouse or children of the borrower become an <a href="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"><span style="color:#0068AC">owner</span></a> of
the property;</span><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:#333333"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">John McCrady<o:p></o:p></p>
<p class="MsoNormal">Counsel<o:p></o:p></p>
<p class="MsoNormal">Puget Sound Title Company<o:p></o:p></p>
<p class="MsoNormal">5350 Orchard Street West<o:p></o:p></p>
<p class="MsoNormal">University Place WA 98467<o:p></o:p></p>
<p class="MsoNormal">253-476-5721<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:j.mccrady@pstitle.com">j.mccrady@pstitle.com</a><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><img border="0" width="336" height="192" style="width:3.5in;height:2.0in" id="Picture_x0020_1" src="cid:image001.png@01D8231D.48E153E0" alt="PRESIDENTS' DAY"></span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Bodoni MT",serif">Beginning July 26, 2021, recording fees for most documents recorded in Washington
<a href="https://www.piercecountywa.gov/DocumentCenter/View/105275/Recording-Fee-Schedule-Effective-Jul-25-2021-">
will increase by $100</a>. Please be sure to collect recording fees accordingly. Due to the above increase, our Reconveyance fees will also be increased by $100.00</span></b><b><o:p></o:p></b></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-top:6.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">WARNING-FRAUDULENT FUNDING INSTRUCTIONS
</span></b><b><span style="font-size:4.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-top:6.0pt"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">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.<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Jayne Gilbert<br>
<b>Sent:</b> Tuesday, February 15, 2022 5:45 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Is this showing up on the listserv?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">Contract to Buy RP w/ Mortgage and Taxes Owed</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt">I sent this to this listserv yesterday and did not get any<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt">feedback. Will somebody please let me know whether<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt">this question actually made it to the site?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt">I have clients who have 2 homes on one parcel. Their<o:p></o:p></span></p>
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<p class="MsoNormal">son and wife live in the little house. They want to sell the<o:p></o:p></p>
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<p class="MsoNormal">property to the son and switch houses.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b><i>Correction </i></b>There are significant taxes owed on the property <o:p></o:p></p>
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<p class="MsoNormal">and a mortgage.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">The son is selling his out of state home and plans to<o:p></o:p></p>
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<p class="MsoNormal">make a significant down payment and then they will be<o:p></o:p></p>
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<p class="MsoNormal">making monthly payments to his parents.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Generally: Will recording the contract make the mortgage and<o:p></o:p></p>
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<p class="MsoNormal">taxes due on sale. (plz set aside reviewing the mortgage <o:p></o:p></p>
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<p class="MsoNormal">language first).<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">I have mentioned reserving a life estate in the property<o:p></o:p></p>
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<p class="MsoNormal">for the parents-they were not warm on the subject I also<o:p></o:p></p>
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<p class="MsoNormal">discussed a TODD and a Will. They do intend to give all<o:p></o:p></p>
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<p class="MsoNormal">their interest in the property upon the death of the survivor.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Thanks<o:p></o:p></p>
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<p class="MsoNormal">-- <o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">*************************************************</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">Jayne Marsh Gilbert</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">Gilbert and Gilbert Lawyers, PS</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">(360) 336-9515</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">*************************************************</span><o:p></o:p></p>
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