[WSBARP] Deed of Trust For Agricultural Land

[Tom J. Westbrook]

I’m sure you realize that foreclosing on a Deed of Trust for agricultural property also allows the defaulting buyer a 12 month redemption period and they can continue to farm or whatever they do during that time period. Good for Buyer; not so good for Seller. As stated by others; Real Estate Contract is best for Seller but if you represent the Buyer you may prefer the Deed of Trust. In my experience as mentioned below by Rick, even if the Deed of Trust states it is not agricultural property and it was, it will need to be foreclosed judicially. I can’t remember for sure if the redemption period runs from date of sale or date of confirmation of sale. I think it is date of confirmation of sale, but  the statute is clear on that.

 

Sincerely,

 

Tom

 

Thomas J. Westbrook

Attorney at Law

 

 

 

Rodgers, Kee & Card

324 West Bay Drive NW, Suite 201

Olympia, Washington  98502

 

Phone: 360-352-8311

Facsimile: 360-352-8501

Email: tjw at buddbaylaw.com

Skype: thomas.westbrook

www.buddbaylaw.com

 

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rick Hoss
Sent: Thursday, September 15, 2016 10:54 AM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Deed of Trust For Agricultural Land

 

David, The agriculture limit is not just in the form – it is in the statute: rcw 61.24.030.  Eric is right about seller electing mortgage foreclosure: 2) That the deed of trust contains a statement that the real property conveyed is not used principally for agricultural purposes; provided, if the statement is false on the date the deed of trust was granted or amended to include that statement, and false on the date of the trustee's sale, then the deed of trust must be foreclosed judicially. Real property is used for agricultural purposes if it is used in an operation that produces crops, livestock, or aquatic goods

 

There is a LPB form for a real estate contract – but you are representing the buyer. The judicial foreclosure might be better for a buyer in default than a real estate contract forfeiture.

Rick

 

 

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of David Faber
Sent: Thursday, September 15, 2016 10:18 AM
To: wsbarp
Subject: [WSBARP] Deed of Trust For Agricultural Land

 

Real Property List:

 

I am working on behalf of a buyer purchasing real property for-sale-by-owner with the seller carrying the note. The real property will be used in significant part as agricultural land. Being aware of the limiting language in the LPO form deed of trust ("which real property is not used principally for agricultural or farming purposes"), I called the closing agent and discussed the issue. At that point in time, they informed me that they could prepare a deed of trust for agricultural lands and I figured the issue was settled. Now that we're a couple days from closing closing, however, they have provided a deed of trust with the limiting language around agricultural land and I find I'm now in a bind. Any advice on what to do now? We're four days from closing.




Best,

David J. Faber

Faber Feinson PLLC

210 Polk Street, Suite 1

Port Townsend, WA 98368
(360) 379-4110

 

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