[WSBARP] Possibility of Reverter

[Roger Hawkes]

Egads!!  Picking nits by title insurer.

I would seek other insurer's inputs; failing a change, then advise Buyer that it probably will impact a future sale or pledge by them; they can do a quiet title action, of course; and have the Sellers pay for cleaning it up?

Roger Hawkes, WSBA 5173
19909 Ballinger Way NE
Shoreline, WA 98155
www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
206 367 5000 voice
206 367 4005  fax

From: Marc Holmes [mailto:marc at holmeslawgroup.com]
Sent: Monday, January 30, 2017 4:22 PM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Possibility of Reverter

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
HolmesLawGroup.com<http://holmeslawgroup.com/>
marc at holmeslawgroup.com<mailto:marc at holmeslawgroup.com>
Ofc: 206-357-4224
Cell: 206-849-0853

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