[WSBARP] Transfer of an element of an Interest in Real Property

Thu Jan 7 14:08:23 PST 2021

Hi Eric, Chris, and Craig,

Thanks for your comments.  

I pulled the Warranty Deed to Parcel A and it reflects the fee interest in
Parcel C, the community beach. 

I was unable to pull the short plat to confirm if this interest was created
as a function of the short plat.

Any other thoughts?

Warmest regards,

Michael S. Safren, Esq. 
Attorney at Law 

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168 
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005 
P: (206) 859-5098 | E:  <mailto:msafren at jennylinglaw.com>
msafren at jennylinglaw.com 
 <http://www.jennylinglaw.com/> www.jennylinglaw.com |
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of Eric Nelsen
Sent: Thursday, January 7, 2021 1:35 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Transfer of an element of an Interest in Real Property

Something in this description of the situation still doesn't make sense to
me.

"Undivided fractional interest" is just a tenant-in-common interest. It's a
fee interest in the land itself and would not be legally conjoined to Parcel
A in the way you describe. "Grantor conveys to Grantee a 20% undivided
fractional interest in and to Parcel C." Let's say "Parcel C" is the
community beach.

To have an undivided fractional interest in Parcel C, there must be direct
fee ownership. I would revisit the actual title documents here, to determine
if the owner of Parcel A in fact owns an interest in the beach, or simply
has an easement right to use Parcel C and Parcel C is instead owned by, say,
a community club or HOA.

If the deed to Parcel A says something like "Parcel A and a 20% undivided
fractional interest in and to Parcel C," then the owner of Parcel A does
indeed own a fee interest in Parcel C. Note that it's common in these
situations for there to be a covenant on Parcel A, or a plat restriction or
some other condition on the fee interest in Parcel C, requiring that a
fractional interest in Parcel C may only be transferred with the fee
interest in Parcel A. So there may be a legal prohibition on separating the
beach interest from Parcel A.

Assuming no such covenants, or conditions or other barriers to conveyance of
Parcel C separate from Parcel A, then an interest in Parcel C ordinarily
would be transferable without reference to any other property. It would be
sufficient to deed "Grantor conveys to Grantee a 20% undivided fractional
interest in and to Parcel C" and no reference need be made at all to Parcel
A or Parcel B.

If the client owns all three, Parcel A, Parcel B, and a fractional interest
in Parcel C, then no deed at this time is needed, since the fee to Parcel C
is legally unrelated to the fee to Parcel A or Parcel B.

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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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
msafren at jennylinglaw.com <mailto:msafren at jennylinglaw.com> 
Sent: Thursday, January 7, 2021 1:00 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com
<mailto:wsbarp at lists.wsbarppt.com> >
Subject: Re: [WSBARP] Transfer of an element of an Interest in Real Property

Hi Steve,

Thanks for your questions.  Hopefully the below information can help clarify
and allow you to better understand the scenario:

Client owns Parcel A and Parcel B.

Parcel A has a legal undivided fractional interest in a community beach.  

Parcel B does not.

Client wants to transfer the legal undivided fractional interest in the
community beach from Parcel A to Parcel B.

Can said transfer be accomplished via a Quit Claim Deed? I don't believe
that this interest is an easement because the interest is a possessory
interest which is contained and described in the legal description of Parcel
A. 

Warmest regards,

Michael S. Safren, Esq. 
Attorney at Law 

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168 
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005 
P: (206) 859-5098 | E:  <mailto:msafren at jennylinglaw.com>
msafren at jennylinglaw.com 
 <http://www.jennylinglaw.com/> www.jennylinglaw.com |
<http://www.facebook.com/jennylinglaw/> facebook.com/jennylinglaw/ 

This communication, including attachments, may contain information that is
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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 Stephen Brandli
Sent: Thursday, January 7, 2021 12:50 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com
<mailto:wsbarp at lists.wsbarppt.com> >
Subject: Re: [WSBARP] Transfer of an element of an Interest in Real Property

What is being transferred exactly?  What does it mean to transfer "a
fractional undivided interest" "to another parcel?"  If the PC owns both the
interest being transferred and the parcel to which you intend to "transfer"
that interest, what exactly is changing?

I'm wondering if there is an easement benefiting the first parcel over the
waterfront, and the PC wants the second parcel to benefit from that easement
as well.  Is that what you are trying to accomplish?

                Steve

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
msafren at jennylinglaw.com <mailto:msafren at jennylinglaw.com> 
Sent: Thursday, January 7, 2021 12:44 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com
<mailto:wsbarp at lists.wsbarppt.com> >
Subject: [WSBARP] Transfer of an element of an Interest in Real Property

Hello Braintrust,

I was approached by a potential client to transfer an element of their real
property, a fractional undivided interest in another parcel with waterfront
access, to another parcel that the potential client owns.

  My first thought is that the transfer could be accomplished by a Quit
Claim Deed  because i) the element in the property is a possessory interest
(i.e. not an easement)  and ii) this is an acquirable distinct element of
the property that is transferable and iii)  not a subdivision/ boundary line
adjustment. Etc.  I believe that the transfer would be exempt from Real
Estate Excise Tax because the transfer would be considered a gift as there
was no exchange of consideration.  

I'm now second guessing myself and wondering if conveyance by deed is the
correct method.  Am I overthinking this? 

All suggestions are welcome

Warmest regards,

Michael S. Safren, Esq. 
Attorney at Law 

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168 
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005 
P: (206) 859-5098 | E:  <mailto:msafren at jennylinglaw.com>
msafren at jennylinglaw.com 
 <http://www.jennylinglaw.com/> www.jennylinglaw.com |
<http://www.facebook.com/jennylinglaw/> facebook.com/jennylinglaw/ 

This communication, including attachments, may contain information that is
confidential and protected by the attorney/client or other privileges. It
constitutes non-public information intended to be conveyed only to the
designated recipient(s). If the reader or recipient of this communication is
not the intended recipient, an employee or agent of the intended recipient
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believe that you have received this communication in error, please notify
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including attachments without reading or saving them in any manner. The
unauthorized use, dissemination, distribution, or reproduction of this
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