[WSBARP] Title insurance question

[Douglas W. Scott]

Scott,  In further explanation, the Chicago Title letter stated "the Policy provides coverage for any encroachments of existing improvements located on the Property onto adjoining land".  The encroaching driveway and parking pad onto the neighbor's property were covered, but the encroachment onto the 10'foot King County drainage easement for surface waters was not covered.  Chicago Title said that the Policy provides coverage for certain violations of any governmental regulation IF a notice is recorded in public records setting forth the violation or intention to enforce and this claim does not fall within the covered risk. Plus, the policy exclusions state precisely what John McCrady's Exlusions stated regarding any "law...or govt. regulation", "environmental protection".  However, the letter from Chicago Title did say it covers "any encroachments".

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 Scott Thomas
Sent: Tuesday, September 05, 2017 10:34 AM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Title insurance question

I'm still confused.  In the abstract, an easement to a governmental entity is treated differently than an easement to a private party?  I can understand treating an encroachment into a zoning setback or a wetland buffer differently, but isn't an easement a property right that is the same regardless of who owns it?  Or am I reading the facts wrong ("encroachment within 10' of easement")?

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, September 05, 2017 9:39 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Title insurance question

Thanks for the explanation.

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> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Tuesday, September 05, 2017 9:03 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Title insurance question

Without seeing the response from Chicago Title, my best guess is that the garage encroached onto a governmentally imposed setback rather than across a boundary line, and that Chicago denied the garage issue under what we sometimes call the "Government Regulation" exclusion, which I quote below:


EXCLUSIONS FROM COVERAGE

The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to

(i) the occupancy, use, or enjoyment of the Land;

(ii) the character, dimensions, or location of any improvement erected on the Land;

(iii) the subdivision of land; or

(iv) environmental protection;

or the effect of any violation of these laws, ordinances, or governmental regulations.  This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
.

John McCrady
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.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: Monday, September 04, 2017 2:51 PM
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] Title insurance question

Client made claim against Chicago Title for:

1.       Having to move a garage that encroached within 10' of a King County drainage easement.

2.       Neighbors claim that client exceeded his easement rights for a parking pad.
Title company says the 2007 Owners Policy provides coverage for encroachments of existing improvements.  It accepted the encroaching parking pad, but denied moving the garage.  They are both encroachments only of a different nature that had been there well before my client bought the property in 2008---any ideas?

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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