[WSBARP] Priority of mechanics lien recorded post conveyance

Wed Aug 30 16:58:48 PDT 2017

Thank you all! Love this listserv.

I must say, I'd love to research the issue much, much further. RCW
60.04.061 is the "relation back" statute, which by its terms is limited to
priority over other encumbrances. And the statute is in derogation of the
common law and therefore is to be strictly construed. Seems like an
argument could be made that the lien (perfected and recorded
post-conveyance) is enforceable over encumbrances, but it would not defeat
a BFP.

Craig

Craig Blackmon, Attorney at Law
Seattle Real Estate Lawyer <http://www.seattlepropertylawyer.com/>
92 Lenora St. (The Makers Space, a shared work environment)
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On Wed, Aug 30, 2017 at 4:43 PM, John McCrady <j.mccrady at pstitle.com> wrote:

> Most residential owner’s policies these days are the Homeowner’s Policy of
> Title Insurance, which does provide coverage for Mechanic’s Lien issues
> without endorsement.
>
> Most lender’s policies do provide coverage for mechanic’s lien issues by
> endorsement.
>
>
>
>
>
> John McCrady
>
> Puget Sound Title Company
>
> 5350 Orchard Street West
>
> University Place WA 98467
>
> 253-476-5721 <(253)%20476-5721>
>
> j.mccrady at pstitle.com
>
>
>
> *From:* wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.
> wsbarppt.com] *On Behalf Of *John McLaughlin
> *Sent:* Wednesday, August 30, 2017 3:25 PM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
>
> *Subject:* Re: [WSBARP] Priority of mechanics lien recorded post
> conveyance
>
>
>
> My understanding is that an owner’s title policy would provide coverage
> for mechanics liens only by endorsement (that would need to be specifically
> requested) but that a lender will always require such coverage as part of
> the lender policy, thus triggering the title insurer’s inquiries and
> requirements to document that there has been no construction activity in
> the last XX days, obtain lien releases, etc.  Would love to have one of the
> title insurer attorneys help clarify—always very helpful.
>
>
>
> John P. McLaughlin
>
> Direct | 206.905.3231 <(206)%20905-3231>
>
> Email | jpmclaughlin at bmjlaw.com
>
>
>
> [image: Title: Bauer Moynihan & Johnson LLP [signature] - Description:
> Bauer Moynihan & Johnson LLP 2101 Fourth Avenue | Suite 2400 | Seattle,
> Washington 98121 www.bmjlaw.com | 206.443.3240 This message contains
> confidential and privileged information. If it has been sent to you in
> error, please reply to inform the sender of the error and then delete this
> message.] <http://www.bmjlaw.com/>
>
>
>
> *From:* wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.
> wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>] *On Behalf Of *Kary
> Krismer
> *Sent:* Wednesday, August 30, 2017 3:16 PM
> *To:* WSBA Real Property Listserv
> *Subject:* Re: [WSBARP] Priority of mechanics lien recorded post
> conveyance
>
>
>
> Carrying this out further, I believe the buyer’s title insurance should
> cover this type of a claim, and that the title company will have a claim
> against the seller.  I’d need to check the policy language, but I think
> that’s why the title company asks certain questions of the seller regarding
> recent events.
>
>
>
> Kary L. Krismer
> 206 723-2148 <(206)%20723-2148>
>
>
>
> *From: *Rick Hoss <rhoss at hctc.com>
> *Sent: *Wednesday, August 30, 2017 2:27 PM
> *To: *'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
> *Subject: *Re: [WSBARP] Priority of mechanics lien recorded post
> conveyance
>
>
>
> You might be missing that the lien relates back in time to the date of
> first work or material delivery. The form in RCW 60.04.091 asks at Section
> 2 the Date Claimant began to perform labor or supply materials. They have
> 90 days after finishing work to file the lien.
>
>
>
> If you look closely you might find a smart title insurer who got lien
> releases from the general before closing, or a sleepy title insurer who did
> not disclose the possibility of a later lien. Contractors are often asked
> to release lien rights by title companies, usually generals though.
>
>
>
> Lawyers who represent material suppliers advise their clients as soon as
> they get a large order to make very early delivery of a 2x4 and bag of
> nails to the site, and carefully document the delivery. (Date Claimant
> began to supply materials….)
>
>
>
> Contractors who claim a lien must prove they provided a RCW 18.27.114
> Notice to Customers in order to claim a lien, and they have to keep copy of
> the customer’s signature documenting receipt of the Notice for 3 years. But
> this might not apply to subs, who usually still have to send the Notice of
> Intent to Claim a Lien – see RCW 60.04.031 for Notice requirements and
> exceptions.
>
>
>
>
>
> *From:* wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.
> wsbarppt.com <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
> *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
>
> Seattle Real Estate Lawyer
> <https://linkprotect.cudasvc.com/url?a=http://www.seattlepropertylawyer.com/&c=E,1,_vfRIZ6416mNRl6zsuvzRU_pyVfomSN-0W98qZN4xsop6w0exivBrsTfAkCJlLIFkJFNx19T-6kyr5fU5lj2sw1nUIn72d3PL8OqgOmdrJ3rOQ,,&typo=1>
>
> 92 Lenora St. (The Makers Space, a shared work environment)
>
> Seattle WA 98121
>
> Office/Cell: (206) 369-5949   Fax: (206) 770-7328
>
> @LawyerBroker <https://twitter.com/LawyerBroker>
>
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