[WSBARP] What are "proceeds" on sale of real property
Stephen A. Brandli
steve at brandlilaw.com
Thu Sep 26 12:28:06 PDT 2019
The original question mentioned a judgment. Is it a judgment lien that the title company is flagging?
Steve
-----Original Message-----
From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jennifer Johnson
Sent: Thursday, September 26, 2019 12:20 PM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] What are "proceeds" on sale of real property
I'm curious why title (or escrow) would be taking a position on what constitutes proceeds?
The standard purchase and sale states that the seller will remove all monetary liens that the buyer hasn't assumed, and that the parties will pay broker commissions in accordance with their listing agreement. The closing agent is instructed to disburse commission to the firms.
Following the agreement, escrow would prepare a settlement statement showing all costs that Seller has agreed to pay (including broker commission from the commission disbursement), include the full amount of the judgment, and show an amount that Seller has to bring in to escrow in order to close the transaction.
From that point, Seller needs to either bring in the amount needed to close, or try to negotiate a way to get the net proceeds to zero.
Whatever happens at that point is up to the parties, not the escrow agent.
Jennifer
Jennifer Johnson
Title Officer | Attorney
Hanigan Law Office, PS
Wahkiakum Title & Escrow Co.
PO Box 39 - 68 Main Street
Cathlamet, WA 98612
(360) 795-3494 / -3741
(360) 795-3001 (f)
www.wahtitle.com
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On 9/26/19 11:48 AM, Kaitlyn Jackson wrote:
> Probably not this close to closing.
>
> But I would really like to know what, if any, is the definition of
> "proceeds" in this context. If proceeds mean price minus costs. And
> costs include commission to brokers, then Title's position is incorrect.
>
> Kaitlyn
>
>
>
> On Thu, Sep 26, 2019 at 11:36 AM Douglas Scott
> <doug at rainieradvocates.com <mailto:doug at rainieradvocates.com>> wrote:
>
> Can you get this quickly on the family law calendar and petition the
> court for approval of the sale and distribution to the ex?
> *DOUGLAS W. SCOTT*
> Rainier Legal Advocates|LLC
>
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> 465 Rainier Blvd. N., Suite C | Issaquah, Washington 98027 |
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> On Thu, Sep 26, 2019 at 11:29 AM <nestor at pplsweb.com
> <mailto:nestor at pplsweb.com>> wrote:
>
> Unless there is case law to the contrary (that I have not seen)
> those amounts come out of the net proceeds to the Seller.____
>
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> *From:* wsbarp-bounces at lists.wsbarppt.com
> <mailto:wsbarp-bounces at lists.wsbarppt.com>
> <wsbarp-bounces at lists.wsbarppt.com
> <mailto:wsbarp-bounces at lists.wsbarppt.com>> *On Behalf Of
> *Kaitlyn Jackson
> *Sent:* Thursday, September 26, 2019 11:13 AM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com
> <mailto:wsbarp at lists.wsbarppt.com>>
> *Subject:* [WSBARP] What are "proceeds" on sale of real property____
>
> __ __
>
> Brain trust -____
>
> __ __
>
> Client is real estate broker. Broker has entered into contract
> with Seller. Sale of property is pending. Title discovers
> divorce decree judgment with the following language in favor of
> Seller's ex-spouse: ____
>
> __ __
>
> /It is further ordered that any proceeds from the pending
> sale of Respondent’s home shall first be applied to his past
> due child support .... judgment of $$$; any remaining
> proceeds shall be applied to his past due spousal
> maintenance judgment of $$$. Failure to apply the proceeds
> as directed by this order shall be a basis for contempt. /____
>
> I took out the amount for privacy reasons. ____
>
> __ __
>
> It is discovered that if the ex-spouse's judgment is paid out of
> the proceeds of the sale that not enough money will be left to
> pay the brokers their commission. Aren't the commissions
> supposed to take priority as a service rendered? ____
>
> __ __
>
> Would love to hear your thoughts. ____
>
> -- ____
>
> Thank you,____
>
>
> KaitlynR. Jackson|Attorney| DIMENSIONLAWGROUPPLLC
> 130 Andover Park East, Suite 300 | Tukwila, WA 98188____
>
> t: _206.973.3500 _| f: _206.577.5090_| e:
> _kaitlyn at dimensionlaw.com|
> <mailto:kaitlyn at dimensionlaw.com%7C>_www.dimensionlaw.com
> <http://www.dimensionlaw.com/>____
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> --
> Thank you,*
> *
>
> Kaitlyn R. Jackson|Attorney|DIMENSIONLAWGROUPPLLC
> 130 Andover Park East, Suite 300 | Tukwila, WA 98188
> t:_206.973.3500_|
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