[WSBARP] commercial deed question.

[John M. Riley III]

First, look at Chapter 64.04 RCW, which states deed types and warranties.  Then look at real property deskbook on deeds to get more analysis.  You can then decide what is best.  Practically speaking, bargain and sale deeds are used mostly by owners who have only owned for a short time so they don't know the history of the property or its title (i.e. owners who took title in foreclosure or trustees of trusts or personal representatives of estates). Unusual for a long term owner to use a non SWD, but it does occasionally happen.  If everyone in the chain of title uses SWD's, then everyone can sue under deed warranties back up the chain of title until the culprit who caused the title problem is  determined, which person should be ultimately responsible.


John M. Riley III
Principal | Witherspoon • Kelley
JMR at witherspoonkelley.com<mailto:JMR at witherspoonkelley.com> | Attorney Profile <http://www.witherspoonkelley.com/john-riley-1> | vCard<http://www.witherspoonkelley.com/s/jmr.vcf>

[WK]

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Scott Thomas
Sent: Monday, January 30, 2017 5:27 PM
To: WSBA Real Property Listserv
Subject: [WSBARP] commercial deed question.

This question arises in the context of the sale of a commercial property.  Seller (an LLC) took title some 20 years ago by warranty deed.  Seller now offers a bargain and sale deed, stating that not only is it customary in the industry, but that it is difficult to access the additional warranties provided by a warranty deed, i.e., difficult to find and tender a claim to the previous owner/title insurer.  My practice does not include a lot of commercial real estate transactions, and so I beseech thee, oh wise colleagues -  is this the general rule for artificial entities that are limited in making warranties?

Scott Thomas
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