[WSBARP] Release of bank lien on adverse possession.

Fri Sep 11 09:36:32 PDT 2020

If the AP portion of the property was aggregated to the possessors parcel, would the lender even be able to foreclose on it because the AP portion alone is not a legal parcel of land?  Way back I recall lenders who were having difficulty foreclosing on a portion of land that had been aggregated to a large piece, but the encumbrance only secured a portion of it.

Jeanne

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
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jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>

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From: wsbarp-bounces at lists.wsbarppt.com On Behalf Of Kary Krismer
Sent: Friday, September 11, 2020 6:04 AM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] Release of bank lien on adverse possession.

I'm not sure Doug's issues matter based on zero research and what my wife claims is a questionable faulty memory.

I believe a grantee under a statutory warranty deed would take subject to the AP claim even if the full 10 years had not passed at the time of transfer.  The AP claimant would merely have to wait for the remaining time to pass.  I don't see any reason a grantee of a DEED of trust would be any different.  If the claim of ownership disappears through AP I think it disappears as to anyone with a claim against the property, or at least anyone claiming through the owner against which the period of AP started.

Alternatively, if the 10 years had passed at the time of the recording of the DOT then the DOT may have never attached to the portion.  As I recall it's the date of the expiration of 10 years that matters, not the date of the court ruling that the 10 years passed.

As to Greg's point about title insurance, if the bank has coverage the bank would have little motivation to act and so probably won't act.  But does a lender's policy cover AP, or does it matter when the AP claim 10 year period expired?  I'm pretty sure owner's policies wouldn't cover an owner when the entire period of AP occurred after they took title.

Kary L. Krismer

206 723-2148
On 9/10/2020 8:02 PM, Doug Owens wrote:
Dear Craig, this is an interesting question.  I have not done any research on the point but it seems to me that the principle behind adverse possession is that the open, notorious and hostile possession for the statutory term should be something that would motivate the person entitled to protect the property interest to take action to eject the trespasser.  Under this principle I ask myself what could the lien holder have done to eliminate the trespass?  And is the lien holder charged with knowledge of the adverse possession such that the lien holder could declare a breach of the deed of trust for the borrower’s failure to protect the title?  On what basis would such knowledge be imputed?  An alternative analysis is that the adverse possessor takes title “subject to” the lien.  At a minimum if the adverse possessor did not serve the lender with the summons and complaint it would seem anomalous that the lien could be invalidated by the award of title through adverse possession.  Good luck.  Yours truly, Doug Owens

On Sep 10, 2020, at 6:47 PM, Craig Gourley <craig at glgmail.com<mailto:craig at glgmail.com>> wrote:

Listmates,  When a party is awarded title to property by adverse possession is the lender lien automatically stripped?  We have an uncooperative lender that refuses to recon the adversely possessed parcel and we really don’t want to file a quiet title over a planter box.  However, this small cloud on title is preventing our clkient’s sale of the property.  Thoughts?

Gourley Law Group
Snohomish Escrow
The Exchange Connection

1002 10th Street / PO Box 1091
Snohomish, WA 98291

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360.568.8092  fax
Craig at glgmail.com<mailto:Craig at glgmail.com>

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