[WSBARP] Priority of mechanics lien recorded post conveyance

[Marcus Fry]

Craig:
You will have a domino effect.  I am assuming SWD, Buyer will tender defense to Seller and raise claim with title insurance carrier.  Title insurance carrier may have claim against Seller based upon Seller’s representations about construction (usually a signed affidavit).  Seller will then in turn tender defense to the GC.  However, a simple call by the Seller to the GC might get things worked out quickly to at least get lien released with GC tendering disputed amount into court registry.  That way Seller and Buyer don’t accrue legal fees.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jay Goldstein
Sent: Wednesday, August 30, 2017 2:04 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Priority of mechanics lien recorded post conveyance

Per statute, lien dates back to start of work.

http://app.leg.wa.gov/RCW/default.aspx?cite=60.04.061


Jay A. Goldstein
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1800 Cooper Point RD SW NO. 8  |  Olympia, WA 98502
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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 Craig Blackmon
Sent: Wednesday, August 30, 2017 2:00 PM
To: WSBA Real Property List Serve <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Priority of mechanics lien recorded post conveyance

'Mates, your input is appreciated following my ineffective legal research (which was then curtailed by error messages on CaseMaker).

Facts: Owner contracts with GC to build house; Owner pays GC in full without sufficient lien release assurances; Owner sells house, title is conveyed to Buyer by recorded warranty deed; Subcontractor thereafter records an otherwise valid mechanic's lien.

I assumed the lien was invalid on its face since it is subsequent to conveyance. How can Subcontractor foreclose Buyer's superior-in-time interest? I know a mechanics lien can defeat an existing but unrecorded DOT. But superior to a prior recorded conveyance?

Is it as simple as I think? Is this lien invalid on its face? Or am I missing something?

Thanks in advance!!

Craig


Craig Blackmon, Attorney at Law
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