[WSBARP] Recording Fee
Pete Middlebrooks
pete at jcmiddlebrooks.com
Wed Apr 22 12:07:01 PDT 2015
Jim and others,
I am going to be a bit "long winded", but I have dealt with this issue on multiple occasions, and have addressed it in prior seminar materials. I would appreciate hearing from you as to the outcome in your battle with the auditor.
1. The Auditor is flat wrong that recording a condominium declaration amendment (or restated declaration) involves "multiple transactions" for which multiple filing fees are required.
2. I have recorded condominium documents (declarations and survey maps) in most Washington counties, and never once paid multiple filing fees.
3. I have set forth below the governing statutes, but the following is a brief explanation.
4. WCA CROSS-REFERENCE REQUIREMENTS. The Washington Condominium Act ("WCA", RCW 64.34) required that:
a. The declaration include a cross reference to the survey and to any prior declaration amendments [RCW 64.34.216]; and
b. The survey include a cross reference to the declaration and to any prior declaration amendments. [RCW 64.34.232]
5. MULTIPLE TRANSACTIONS
a. Including in a condominium declaration a cross reference to the survey, or including in a condominium survey a cross reference to the declaration, does not create "multiple transactions" under RCW 36.18.010 - the "transaction" is simply the creation of the condominium, and there is a filing fee for the declaration (separately indexed) and a filing fee for the survey (separately indexed).
b. Including in a condominium declaration amendment a cross reference to the original declaration (and prior amendments), or including in a condominium survey amendment a cross reference to the original declaration or survey (and prior amendments), does not create "multiple transactions" under RCW 36.18.010 - the "transaction" is the amendment, and there is a filing fee for the amendment (separately indexed) .
6. INDEXING The condominium declaration amendment and condominium survey amendment must be indexed. But, including a cross reference to a condominium declaration (or previously recorded amendments) and/or condominium survey (or previously recorded amendments) does not require indexing again the previously recorded documents. See RCW 65.04.050, RCW 65.04.045 and RCW 65.04.047.
7. COVER SHEET. A recorded document must include a cover sheet containing, among other things:
a. "Document Title(s) (or transactions contained therein)" ─ This would typically be "AMENDMENT TO DECLARATION", and would not include the titles of the previously recorded documents.
b. "Reference Number(s) of Documents assigned or released" ─ This would typically be "NONE"; the previously recorded documents are not being "assigned or released". At times an Auditor (or title company recording the amendment) will insert here the recording numbers of the previously recorded documents being amended, but that does not create "multiple transactions". There is still only one "transaction" ─ the amendment.
8. LOCATION OF CROSS-REFERENCE.
a. Typically, I start a declaration amendment with a "Recital"
"Shady Shores Condominium was created by the recording of a Declaration under AF# AAA ([and if appropriate] Amendments thereto under AF# BBB, CCC, etc.) and the recording of a Survey Map and Plans under AF# XXX ([and if appropriate] Amendments thereto under AF# YYY, ZZZ, etc.)".
b. But you could "bury" the cross-reference wherever you want in the amendment. The location of the cross-reference is irrelevant ─ only a single "transaction" is involved.
c. See also RCW 65.04.045 which provides that the Auditor (1) only indexes the title captioned on the document, (2) relies only on the "Cover Sheet", and (3) does not read the document.
9. OTHER EXAMPLES. The "multiple transaction" issue is not limited to the WCA requirements for cross-referencing. Here are two recent examples:
a. Office Condominium. (1) 2-level existing Office Building (with on-site parking lot) located on a Short-plat Lot; (2) Short Plat created other commercial Lots and a large parking lot for use by all Short Plat Lots; (3) An Easement recorded with Short Plat granted the Office Building Lot exclusive parking rights on specified spaces in the Short Plat parking lot; (4) Legal description of Office Building Lot was "Lot 1, Plat recorded under AF# XXX, together with parking rights pursuant to Easement recorded under AF# YYY (and amendments thereto under AF# ZZZ); (5) Office Building condominiumized, with lower level Unit granted an exclusive Limited Common Element to the on-site parking, and upper level Unit granted an exclusive Limited Common Element to the Short Plat Easement parking; (6) the condominium declaration and survey both included cross-references to the Short Plat Easement; (7) despite cross references to the Short Plat Easement, creating the condominium was a single transaction with a filing fee for the declaration (separately indexed) and a filing fee for the survey (separately indexed).
b. Planned Unit Development. (1) In Spokane, a PUD approved for multi-year development of a multi-building,, 100 Unit, "airspace" master condominium; (2) PUD Plan (survey) and PUD Declaration of CC&R's simultaneously recorded (with cross-referencing to the PUD-Plan and PUD-CC&R's); (3) recording the PUD is single transaction with a filing fee for the PUD-Plan (separately indexed) and a filing fee for the PUD-CC&R's (separately indexed); (4) When inevitable amendments are recorded to the PUD-Plan and/or PUD-CC&R's (with necessary cross-references to previously recorded documents) the amendment will constitute a single transaction, with a single filing fee and indexing for the amendment.
GOVERNING STATUTES - DECLARATION AMENDMENTS; MULTIPLE TRANSACTIONS
A. RCW 64.34.216 - CONTENTS OF DECLARATION
(1) The declaration for a condominium must contain: . . . .
(o) A cross-reference by recording number to the survey map and plans for the units created by the declaration; and . . . .
(2) All amendments to the declaration shall contain a cross-reference by recording number to the declaration and to any prior amendments thereto. . . . .
B. RCW 64.34.232 - SURVEY MAPS AND PLANS
(1) A survey map and plans executed by the declarant shall be recorded simultaneously with, and contain cross-references by recording number to, the declaration and any amendments. . . . .
C. RCW 36.18.010 - AUDITOR'S FEES.
County auditors or recording officers shall collect the following fees for their official services: (1) For recording instruments, for the first page eight and one-half by fourteen inches or less, five dollars; for each additional page eight and one-half by fourteen inches or less, one dollar. The fee for recording multiple transactions contained in one instrument will be calculated for each transaction requiring separate indexing as required under RCW 65.04.050<http://app.leg.wa.gov/rcw/default.aspx?cite=65.04.050> as follows: The fee for each title or transaction is the same fee as the first page of any additional recorded document; the fee for additional pages is the same fee as for any additional pages for any recorded document; the fee for the additional pages may be collected only once and may not be collected for each title or transaction;
D. RCW 65.04.050 - INDEX OF INSTRUMENTS, HOW MADE AND KEPT - RECORDING OF PLAT NAMES.
Every auditor or recording officer must keep a general index, direct and inverted. . . . .The auditor or recording officer shall correctly enter in such index every instrument concerning or affecting real estate which by law is required to be recorded, . . . .
E. RCW 65.04.045 - RECORDED INSTRUMENTS - REQUIREMENTS - CONTENT RESTRICTIONS - FORM
(1) When any instrument is presented to a county auditor or recording officer for recording, the first page of the instrument shall contain:. . . .
(c) The title or titles, or type or types, of the instrument to be recorded indicating the kind or kinds of documents or transactions contained therein immediately below the three-inch margin at the top of the page. The auditor or recording officer shall be required to index only the title or titles captioned on the document;
(d) Reference numbers of documents assigned or released with reference to the document page number where additional references can be found, if applicable; . . . .
The information provided on the instrument must be in substantially the following form:
Return Address
Document Title(s) (or transactions contained therein):
Grantor(s) (Last name first, then first name and initial
Grantee(s) (Last name first, then first name and initials)
Legal Description (abbreviated: i.e., lot, block, plat or section, township, range)
Assessor's Property Tax Parcel or Account Number at the time of recording:
Reference Number(s) of Documents assigned or released:
The Auditor or Recording Officer will rely on the information provided on this form. The staff will not read the document to verify the accuracy of or the completeness of the indexing information provided herein.
F. RCW 65.04.047 - RECORDED INSTRUMENTS - COVER SHEET - WHEN REQUIRED - FORM
(1) If the first page of an instrument presented for recording does not contain the information required by RCW 65.04.045<http://app.leg.wa.gov/rcw/default.aspx?cite=65.04.045>(1), the person preparing the instrument for recording shall prepare a cover sheet that contains the required information. The cover sheet shall be attached to the instrument and shall be recorded as a part of the instrument. An additional page fee as determined under RCW 36.18.010<http://app.leg.wa.gov/rcw/default.aspx?cite=36.18.010> shall be collected for recording of the cover sheet. Any errors in the cover sheet shall not affect the transactions contained in the instrument itself. The cover sheet need not be separately signed or acknowledged. The cover sheet information shall be used to generate the auditor's grantor/grantee index, however, the names and legal description in the instrument itself will determine the legal chain of title. The cover sheet shall be substantially the following form:
When Recorded Return to
Document Title(s)
Grantor(s)
Grantee(s)
Legal Description
Assessor's Property Tax Parcel or Account Number
Reference Numbers of Documents Assigned or Released
Law Office of James C. Middlebrooks
Pete Middlebrooks (Attorney)
3050 Belmonte Lane, Everett, WA 98201
Email: Pete at jcmiddlebrooks.com<mailto:Pete at jcmiddlebrooks.com>
Pete Tel.: 425-252-2693
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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of James L. Strichartz
Sent: Tuesday, April 21, 2015 11:43 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Recording Fee
I agree John, it is not multiple transactions as defined in RCW 36.18.005(4). "(4) "Multiple transactions" means a document that contains two or more titles and/or two or more transactions requiring multiple indexing."
Please check out our new website, now live at www.condo-lawyers.com<http://www.condo-lawyers.com>.
Jim Strichartz
Attorney
Law Offices of James L. Strichartz
201 Queen Anne Avenue North, Suite 400
Seattle, WA 98109-4824
jim at condo-lawyers.com <mailto://jim@condo-lawyers.com/>
http://www.condo-lawyers.com<http://www.condo-lawyers.com/>
http://www.linkedin.com/in/condolawyer
tel: 206-388-0600
fax: 206-286-2666
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Tuesday, April 21, 2015 10:06 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Recording Fee
What bothers most people is that the reference to the other amendments does not necessitate indexing to those other amendments, and therefor there is no justification for the extra charges.
John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98466
253-476-5721
From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Kathryn R. McKinley
Sent: Tuesday, April 21, 2015 9:38 AM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Recording Fee
I've had this experience in Spokane County and have not been successful in getting the fees reduced. The Auditor's office relies on RCW 36.18.010 which states in pertinent part:
County auditors or recording officers shall collect the following fees for their official services:
(1) For recording instruments, for the first page eight and one-half by fourteen inches or less, five dollars; for each additional page eight and one-half by fourteen inches or less, one dollar. The fee for recording multiple transactions contained in one instrument will be calculated for each transaction requiring separate indexing as required under RCW 65.04.050<http://web2.westlaw.com/find/default.wl?mt=108&db=1000259&docname=WAST65.04.050&rp=%2ffind%2fdefault.wl&findtype=L&ordoc=18647945&tc=-1&vr=2.0&fn=_top&sv=Split&tf=-1&pbc=5E9D796F&rs=WLW15.04> as follows: The fee for each title or transaction is the same fee as the first page of any additional recorded document; the fee for additional pages is the same fee as for any additional pages for any recorded document; the fee for the additional pages may be collected only once and may not be collected for each title or transaction;
If you get somewhere with your county, I'd be interest in the basis for any reduction in fees.
Thanks,
Kathryn R. McKinley
Of Counsel
[PHEmailLogo]
717 W. Sprague Ave. Suite 1200
Spokane, WA 99201
(509) 455-6000
kathryn.mckinley at painehamblen.com<mailto:kathryn.mckinley at painehamblen.com>
From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of James L. Strichartz
Sent: Monday, April 20, 2015 7:18 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Recording Fee
Thanks, Ron. I have spoken to the recording clerk and the recording supervisor, both of whom think that they have to follow their fee schedule, which of course applies to multiple transactions. The auditor is out of the office until Wednesday, but the supervisor has promised to bring this issue up with her. I will talk to her if the supervisor does not come back with a correct response.
Jim
Please check out our new website, now live at www.condo-lawyers.com<http://www.condo-lawyers.com>.
Jim Strichartz
Attorney
Law Offices of James L. Strichartz
201 Queen Anne Avenue North, Suite 400
Seattle, WA 98109-4824
jim at condo-lawyers.com <mailto://jim@condo-lawyers.com/>
http://www.condo-lawyers.com<http://www.condo-lawyers.com/>
http://www.linkedin.com/in/condolawyer
tel: 206-388-0600
fax: 206-286-2666
Providing Tools for Successful Communities
This message is intended only for the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, or the agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited, and you are requested to please notify us immediately by telephone, and return the original message to us at the above address. Opinions, conclusions and other information in this message that do not relate to the official business of this firm shall be understood as neither given nor endorsed by it. Although this message and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free, and no responsibility is accepted by this firm for any loss or damage in any way from its use.
From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Ron Housh
Sent: Monday, April 20, 2015 5:11 PM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Recording Fee
Jim:
You may have already done this - but try to speak with someone "above" the person requesting the $792.
Many years ago I had a similar experience - frankly, I cannot recall which County - but once I was able to speak to someone with more experience I was able to record through payment of the more standard fee.
To state the obvious, recitation of other recordings does not in any way turn this into a multiple transaction recording. Sounds like you are dealing with someone who is trying to draw an analogy to a Lien Release recording where the Release references by recording # more than 1 lien recording to be released. Yes - that is a multiple transaction [all of which I suspect you know].
Ron
I AM TYPICALLY IN THE SEATTLE OFFICE ON TUESDAY AND THURSDAY AND IN THE MOUNT VERNON OFFICE ON MONDAY, WEDNESDAY AND FRIDAY
Ronald G. Housh, P.S.
Attorney at Law
Seattle Office:
1420 Fifth Avenue, Suite 3000
Seattle, WA 98101-2393
Phone: 206-381-1341
Fax: 206-464-0461
Email: ron at housh.org<mailto:ron at housh.org>
Mount Vernon Office:
21411 Bluejay Place
Mount Vernon, WA 98274
Phone: 206-235-2459
Email: ron at housh.org<mailto:ron at housh.org>
From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of James L. Strichartz
Sent: Monday, April 20, 2015 4:35 PM
To: wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Recording Fee
I just had an amended and restated condominium declaration rejected by the Benton County Auditor because I did not remit the proper recording fee. They claim that the correct fee for recording the first page of the document is $792 dollars because it references the declaration and nine prior amendments as required by RCW 64.34.264(3). They are claiming that the reference to multiple documents makes this multiple transactions. Has anyone had a similar experience. I have not run across this logic in any other county. Any assistance you can give would be appreciated.
Jim
Please check out our new website, now live at www.condo-lawyers.com<http://www.condo-lawyers.com>.
Jim Strichartz
Attorney
Law Offices of James L. Strichartz
201 Queen Anne Avenue North, Suite 400
Seattle, WA 98109-4824
jim at condo-lawyers.com <mailto://jim@condo-lawyers.com/>
http://www.condo-lawyers.com<http://www.condo-lawyers.com/>
http://www.linkedin.com/in/condolawyer
tel: 206-388-0600
fax: 206-286-2666
Providing Tools for Successful Communities
This message is intended only for the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, or the agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited, and you are requested to please notify us immediately by telephone, and return the original message to us at the above address. Opinions, conclusions and other information in this message that do not relate to the official business of this firm shall be understood as neither given nor endorsed by it. Although this message and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free, and no responsibility is accepted by this firm for any loss or damage in any way from its use.
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