[WSBARP] Assignment of Seller's REK - Grantee doesn't sign

[Kary Krismer]

I would consider the obligation to convey title when the REK is paid off 
to be "something substantial."  Particularly if the REK requires a 
conveyance by a SWD (not sure what the standard terms are).   And if the 
assignee didn't sign off, where would that leave the grantee under the 
REK after they've paid off the obligation?  The assignor and original 
REK vendor would have been out of the picture on future payments and not 
know whether to convey.

Out of curiosity, I wonder what's required on the UCC side, assuming 
Freeborn v. Seattle Trust is still good law.  I fell out of touch with 
Article 9 after the last revisions (that I heard about), so I don't know 
if something would be required of the grantee on that part of the 
transaction.

Kary L. Krismer
John L. Scott, Inc.
206 723-2148

On 6/16/2020 4:27 PM, Eric Nelsen wrote:
>
> Here's one I haven't really thought about before. The standard Deed 
> and Seller's Assignment of Real Estate Contract 
> <https://www.wsba.org/docs/default-source/licensing/lpo/forms/13-05_i_-sacd51365ef2f6d9654cb471ff1f00003f4f.pdf?sfvrsn=42ef3bf1_2> 
> says in the body that "Grantee hereby assumes and agrees to fulfill 
> the conditions of said real estate contract..."
>
> Ordinarily there is not much that the Seller is required to do at that 
> point – but let's assume that there is something substantial, and the 
> Grantee did _not_ sign the assignment indicating their assent. Only 
> the Grantor-Seller signed.
>
> So:
>
>  1. Is the Grantee's supposed covenant to fulfill the Seller's
>     obligations ineffective? Or does the Grantee's assumed acceptance
>     of the "deed" portion of this instrument impute also a contractual
>     agreement to take on the covenant obligations?
>  2. Is the deed nevertheless operative, to transfer Seller's "bare
>     title" (lien interest) to the Grantee? So now Seller is not off
>     the hook on the contractual obligations, but also no longer has
>     their security interest in the property?
>
> Sincerely,
>
> Eric
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
>
> Seattle WA 98144-3909
>
> 206-625-0092
>
> _eric at sayrelawoffices.com <mailto:eric at sayrelawoffices.com>_
>
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