[WSBARP] 3 story house meets 2 story CCR restriction

[scott at scottgthomaslaw.com]

Just an observation, and you have probably considered this, but there are
different ways of defining the term "story," and what constitutes a
basement, depending on where you start measuring -  walk-out basements being
a case in point.  And of course, future HOA Boards may interpret the CCR
differently than the current board.

 

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of John McCrady
Sent: Tuesday, March 20, 2018 1:01 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] 3 story house meets 2 story CCR restriction

 

Beware of Item 4 of the Exclusions:

 

Risks:

a. that are created, allowed, or agreed to by You, whether or not they are
recorded in the Public Records; 
b. that are Known to You at the Policy Date, but not to Us, unless they are
recorded in the Public Records at the Policy Date; 
c. that result in no loss to You; or 
d. that first occur after the Policy Date - this does not limit the coverage
described in Covered Risk 7, 8.e., 25, 26, 27 or 28.

I would probably want to request affirmative coverage against that matter.

 

John McCrady

Counsel

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 marc
holmeslawgroup.com
Sent: Tuesday, March 20, 2018 11:27 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com
<mailto:wsbarp at lists.wsbarppt.com> >
Cc: kim holmeslawgroup.com <kim at holmeslawgroup.com
<mailto: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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