[WSBARP] last minute cloud on title

[Douglas W. Scott]

However, according to the Klickman case 716 P 2d 840 an agreement to divide proceeds from the sale of property "is not a title defect because it does not affect title."  Since Buyer demands clear title, then this should not be an encumbrance.

Douglas W. Scott
Law Offices of Douglas W. Scott
Windermere Building
1810 15th Place NW, Suite 203
Issaquah, Washington, 98027
V.  425.392.8550
F.  425-392-2829
www.davisscottlaw.com<http://www.davisscottlaw.com/>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Tuesday, March 07, 2017 10:30 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] last minute cloud on title

>From the facts given, I don't think a title company would take such an indemnity due to the uncertainty of what the other party is demanding and of how to calculate the potential loss.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98466
253-476-5721

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Richard Holland
Sent: Tuesday, March 07, 2017 10:02 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] last minute cloud on title

The Seller is demanding clear title?

Holdback/indemnification might work for the parties at 1.5 times the amount but there isn't any requirement that the Title Company agree to it.  My guess is that it depends on the amount in dispute.  Unfortunately, Slander of Title won't work until the sale actually fails as I understand that cause of action because as of now you don't actually have a loss, just a potential loss.  It wouldn't be ripe if memory serves.

On mobile so sorry this is cryptic

Rich Holland
rich at pnwle.com<mailto:rich at pnwle.com>

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Douglas W. Scott
Sent: Tuesday, March 07, 2017 8:04 AM
To: WSBA Real Property Listserv (wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>) <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] last minute cloud on title

CR2A Agreement states that a party to the litigation gets a percent of the proceeds on the sale of the Property.  No requirement that they be informed of pre-closing info because they may hamper closing.  2 days before closing the party records the CR2A against the Property alleging wrongfully that it has been breached.  Title Co. acknowledges that it is not a lien, but won't clear title because of "risk".  Buyer demands clear title . Property Owner is 94 years old and closing is in jeopardy.  OPTIONS:  slander of title action; holdback of funds to indemnify title co.; give party all info and hope they don't use leverage and ask for more money.  Any suggestions?

Douglas W. Scott
Law Offices of Douglas W. Scott
Windermere Building
1810 15th Place NW, Suite 203
Issaquah, Washington, 98027
V.  425.392.8550
F.  425-392-2829
www.davisscottlaw.com<http://www.davisscottlaw.com/>

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