[WSBARP] Post-Divorce Property Transfer Debacle Question

[Eric Nelsen]

It sounds to me like client's sole interest was to no longer be on the mortgage? And that mortgage has been extinguished at this point, by the sale to a third party?

The "backyard mortgage" also sounds like a technical violation of the property settlement agreement, but not an issue if no prejudice resulted to the client. Since the ex received the property, an undisclosed mortgage simply diminishes the value of the property received by the ex.

If that is the case, then I agree, nothing here is actionable by client. Regardless of what the ex is doing, it has nothing to do with the client. So long as nothing in the shady transactions traces to the client.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA 98101-2837
phone 206-625-0092
fax 206-625-9040

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Ross Gardner
Sent: Thursday, January 07, 2016 4:06 PM
To: WSBA Real Property Listserv
Subject: [WSBARP] Post-Divorce Property Transfer Debacle Question

Good Afternoon Everyone,

I have a bit of a unique situation.  I have a Client who divorced a couple of years ago.  As part of the property settlement agreement, C agreed to give the house to the Ex by quitclaim in exchange for being removed from the mortgage.  Ex also stated that there were no outstanding encumbrances or liabilities other than the mortgage and credit card debt.

Ex asked C for the quitclaim deed in early 2014, but apparently refused to remove C's name from the mortgage, so C did not produce the quitclaim deed.  Somehow, the Ex was able to sell the home a few months later without C's consent.  The chain of title magically goes from Husband and Wife as owners of the property, to a single person transferring the property to a buyer.  Ex supposedly had to pay money into the deal to make it happen, so there were no proceeds.

It also turns out that Ex mortgaged a portion of their backyard prior to the divorce to Ex's parents in exchange for $100k, which violated the property settlement agreement and also was probably not disclosed to the buyer.  That backyard portion was recently reconveyed to Ex.

Although there were clearly shady dealings going on, I don't know if any of this is actionable since my client did not have any monetary damages.  Obviously, we can probably try to undo the whole deal and/or report the real estate and title agents to their professional boards, but my client does not seem to want to go that route (thankfully).

Does anyone have any other suggestions?  Is there anything I am missing?  I would really appreciate any and all input on this.

Thanks so much!


Best Regards,

Ross Gardner, J.D
Attorney
.
425-870-4430
Ross at tglawgrp.com<mailto:Ross at tglawgrp.com>
www.tglawgrp.com<http://www.tglawgrp.com>

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