[WSBARP] Trustee Sale and Commercial Tenants - Questions

[Roberto Castro]

Greetings Listserv members

Is there are a case (published or unpublished) that discusses whether prior to a trustee sale, commercial tenants need to be given notice of the sale? My reading of RCW 61.24.040 is that the notice applies in a residential, coop, multiplex setting, and not when space is leased to retail and professional tenants.  (The leases here where entered well after the mortgage and there is no subrogation clause).  Your thoughts and views are welcomed.

As a follow up, it seems that the buyer can terminate the leases since this is not a sale a sale in the ordinary course. As a further follow-up, if a commercial tenant makes improvements a year before the trustee sale, it seems to me that the tenant(s) have limited or no recourses against the buyer, rather the recourse, if any, is against the former lessor (leases are silent on this issue).

I could not find any case law on the above issues, please share with other listserv members or reply confidentially.

Thank you.

Roberto
509-679-3668
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