[WSBARP] HOA notice of liens - legal description

[John McCrady]

There are of course several layers to this question, but my quick reply is:

If the CCR establish a lien upon assessment, then the recording of the lien is not necessary for the lien to attach to the property.  The recording is only to assure that a Title Search will disclose the existence of the already perfected lien.
The title company may pick up the lien based on the included parcel number, as our plant postings should include the filed lien notwithstanding the lack of a legal description.  However, without the legal description we cannot be certain we will pick it up.
Also, notwithstanding the title company posting issues, the legal description is required for the recorded lien to be in the official chain of title to the property.
My bottom line is, once it has been decided to record the lien, it doesn’t make sense to not include the legal description on the lien.

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] On Behalf Of Jennifer Johnson
Sent: Friday, December 30, 2016 7:56 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] HOA notice of liens - legal description

If the lien is properly indexed under the property owner’s name and/or the tax parcel number, then the title company should find it.

Jennifer

Jennifer Johnson
Attorney | Title Officer
Wahkiakum Title & Escrow Co.
PO Box 39 - 68 Main Street
Cathlamet, WA 98612
(360) 795-3741
(360) 795-3001 (f)

Serving Wahkiakum County’s Title & Escrow Needs For Over 100 Years

Agent for Old Republic National Title Insurance Company



On Dec 29, 2016, at 3:01 PM, Josh Grant <jgrant at accima.com<mailto:jgrant at accima.com>> wrote:

    I have a HOA client who files notices of liens when members do not pay assessments.  The CC&R’s in this case do not require such recording before a lien exists, but allows the HOA to file a public “lien”.  Is it not a best practice to include the legal description on the notice of lien along with the parcel #?  An auditor’s clerk advised the client to simply remove the “exhibit “A” which contained a legal description because “it wasn’t needed, the parcel # is enough and it saves $1.00”.  Of course now the document recorded makes reference to an exhibit “A” which doesn’t exist.

But my concern with this legal advice is that a title company may not pickup the notice, and if the lot is sold the nonpayment of liens might not appear as a special exception and the sale closes without the payment to the HOA, which is one of the main reasons for filing a notice of lien in the first place.

Other opinions?

Josh

Joshua F. Grant, PS
Attorney at Law
P. O. Box 619
Wilbur, WA 99185
tel 509 647 5578
fax 509 647 2734
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