[WSBARP] Possibility of Reverter

[Marc Holmes]

Mates,

 

I have a client purchasing a single family home and an old deed showed up on
title with a restriction against "carrying on a trade or business" on the
property or else the property "immediately reverts to the grantors" who are
long since dead.  I've been to the property and there is nothing there to
suggest it's been used for anything but a typical residence since the house
was built in the 90s and the current owners have owned for more than 10
years.  However, they have registered two LLCs to using this property's
address.  When asked they said they have never operated a business on the
property and that the LLCs are holding companies they own for two completely
unrelated multifamily properties run by an outside property manager.  On the
advice of their real estate agent, they signed and notarized a written
statement to that effect.  

 

The sellers will be conveying by warranty deed and the title company is
excepting the old deed from title policy.  Whether the old deed was
sufficient to create a defeasible fee is debatable but assuming that it was,
what more, if anything, should I do to look out for the buyers' interest?   

 

 

 

Marc Holmes

Holmes Law Group PLLC

808 5th Ave N

Seattle WA 98109

 <http://holmeslawgroup.com/> HolmesLawGroup.com

 <mailto:marc at holmeslawgroup.com> marc at holmeslawgroup.com

Ofc: 206-357-4224

Cell: 206-849-0853

 

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