[WSBARP] Real Estate Contract (RCW 61.30) for Partially Agricultural Land in lieu of mortgage

[swhite8893 at aol.com]

That's an interesting question. Back a ways, RECs were always used here
locally. It then changed to DOTs but for no apparent reason I ever heard
expressed. Maybe liability concerns. When the real estate world started
going upside down in 2008, a lot of ideas came up about making
foreclosures more difficult. Some came to pass and some did not. That
seems to have subsided. The problem was, what was going to happen next.
You could do a DOT and all of a sudden there could be significant hurdles
to overcome to foreclose. The Department of Commerce mediation provisions
did not exempt seller financed transactions. However, none of this was
being applied to RECs. So it struck me that doing a DOT was exposing a
selling client to all sorts of unknowns, and a REC seemed to be the best
way to avoid that. 
     I would be very interested in hearing what other people think.
 
Steve
      
Stephen Whitehouse
Whitehouse & Nichols, LLP
Attorneys at Law
P.O. Box 1273
601 W. Railroad Ave.
Shelton, Wa. 98584
360-426-5885
swhite8893 at aol.com
-----Original Message-----
From: Robert R. Rowley <rob at rowleylegal.com>
To: wsbarp <wsbarp at lists.wsbarppt.com>
Sent: Thu, Mar 13, 2014 10:29 am
Subject: [WSBARP] Real Estate Contract (RCW 61.30) for Partially
Agricultural Land in lieu of mortgage


As to a seller financed transaction where I represent the seller (and have
the freedom to pick the financing instrument) any thoughts on using a real
estate contract (RCW 61.30) for 240 acres (4 parcels) of which
approximately 30 acres is pasture, small house and out buildings and the
balance of heavily forested?  
 
Especially in light of the Schroeder v. Excelsior Management Group, 177
Wn.2d 94 (2013) decision where the creditor was slapped up for using a
deed of trust which waived the ‘agricultural provision’ for obviously
agricultural property.
 
The reason for the real estate contract would be much quicker and less
expensive forfeiture/foreclosure/no redemption.  I use contracts a lot
with residential properties.  This would be in lieu of a standard mortgage
which one always uses for farmland.  I’ve foreclosed and structured both
on many prior transactions.
 
I didn’t see any prohibitions in RCW 61.30 nor any adverse case law.
 
Thoughts?
 
Robert R. Rowley
Spokane
(509) 252-5074 (wk)
rob at rowleylegal.com
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As with all lists - let the reader beware! No warranties or
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All opinions and comments in this message represent the views of the
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