[WSBARP] 3 story house meets 2 story CCR restriction

[nestor at pplsweb.com]

Here are three points to ponder:

 

*	I never feel comfortable relying on a title policy especially when
you know of the deficiency in advance.  Also be careful of exclusion 3(a)
under the ALTA policy regarding known defects.
*	I don't know anyone who likes filing a claim.
*	What about future marketability?

 

I see a recipe for disaster.

 

Nestor Gorfinkel, Attorney at Law

Licensed in Washington & Florida

Florida Civil-Law (International) Notary

 

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of marc holmeslawgroup.com
Sent: Tuesday, March 20, 2018 11:27 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Cc: kim holmeslawgroup.com <kim at holmeslawgroup.com>
Subject: [WSBARP] 3 story house meets 2 story CCR restriction

 

We have a client set to buy a brand new 3 story house and, lo and behold,
the builder didn't notice or ignored a CCR restriction limiting homes to no
more than 2 stories.  Title company says the ALTA Homeowner's policy covers
this and points to a "covered risk" provision that reads:

 

You are forced to correct or remove an existing violation of any covenant,
condition or restriction affecting the Land, even if the covenant, condition
or restriction is excepted in Schedule B.  However, You are not covered for
any violation that relates to:

a.	Any obligation to perform maintenance or repair on the Land; or
b.	Environmental protection of any kind, including hazardous or toxic
conditions or substances.

unless there is a notice recorded in the Public records, describing any part
of the Land, claiming a violation exists.  Our liability for this Covered
Risk is limited to the extent of the violation stated in that notice.

 

We're not aware of any publicly recorded notice of that the 3rd story is a
violation.  Does this seem like adequate protection for the buyer or a
recipe for disaster?

 

 

 

Marc Holmes

Holmes Law Group PLLC

2303 W. Commodore Way, # 306

Seattle WA 98199

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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