[WSBARP] [REALPROP] Condo dues lien versus Statute of Limitations

Sun Jun 30 07:41:27 PDT 2019

As an aside, does anyone have experience with financing of condos under the new Common Interest Ownership statute? In particular does the new 6 yr SL of limitations for assessments scare them? TIA, Cy

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon)

phone: 360-472-1223 Mail: POB 367, Shaw Island, WA 98286 Office: 640 Mullis St. Friday Harbor, WA

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Setareh Mahmoodi
Sent: Thursday, June 27, 2019 3:27 PM
To: WSBA Real Property Listserv
Cc: REALPROP at yahoogroups.com
Subject: Re: [WSBARP] [REALPROP] Condo dues lien versus Statute of Limitations

I agree and read it to mean the same. 

Setareh 

On Thu, Jun 27, 2019 at 10:54 AM Carmen Rowe <carmen at gryphonlawgroup.com> wrote:

Eric - 

My two cents, is a reading of the statutes as a whole (per statutory interpretation rules) the "all" dues necessarily incorporates only all validly existing dues. 

I think that consistent both with intent (which was clearly to limit exposure to past dues if association just sat on their rights), and rational thinking - you can't have liability for an invalid debt. 

Carmen Rowe, Attorney/Owner

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On Wed, Jun 26, 2019 at 10:58 AM Eric Nelsen eric at sayrelawoffices.com [REALPROP] <REALPROP at yahoogroups.com> wrote:

Looking for confirmation here that I'm right, or else a stern rebuke for wishful thinking.

Property has about 8 years of back condo dues unpaid.

Condo is organized under the Horizontal Property Regimes Act--the old one. Per RCW 64.34.010(1) <https://app.leg.wa.gov/RCW/default.aspx?cite=64.34&full=true#64.34.010> , the lien provisions of the 1990 Act, RCW 64.34.364 <https://app.leg.wa.gov/RCW/default.aspx?cite=64.34&full=true#64.34.364> , apply to this condo.

RCW 64.34.364 has a 3-year statute of limitations on back dues:

(8) A lien for unpaid assessments and the personal liability for payment of assessments is extinguished unless proceedings to enforce the lien or collect the debt are instituted within three years after the amount of the assessments sought to be recovered becomes due.

But it also has this, which says "all" unpaid dues:

(12) ....In a voluntary conveyance, the grantee of a unit shall be jointly and severally liable with the grantor for all unpaid assessments against the grantor up to the time of the grantor's conveyance....

In this context, "all" just means the most recent three years of dues, because collection of the older dues is barred by statute of limitations, right? Section 12 can't possibly mean that in a voluntary conveyance the statute of limitations under (8) does not apply?

[Note--it looks like the statute of limitations is changed to six years under the new UCIOA, RCW 64.90.485(9) <https://app.leg.wa.gov/RCW/default.aspx?cite=64.90&full=true#64.90.485> . But the "all" language is carried over into the new act as well, RCW 64.90.485(17).]

Sincerely,

Eric

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040

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