[WSBARP] Post-Divorce QCD Catch 22

[Kary Krismer]

Unfortunately that is may not a solution to the problem.    I suspect 
the problem is RCW 6.13.060, which requires a spouse to sign off on a 
mortgage of homestead property, even when the property is not the 
homestead of the spouse.  If that is the problem, the bank is wrong if 
given this is a post-divorce situation.  They are no longer spouses.  It 
is true, however, that many banks will allow the other spouse to sign a 
QCD in lieu of the spouse signing off on the DOT.  That's technically 
not correct, but if both the title company and bank okay it in this, I 
don't see any harm (particularly given the statute doesn't apply).

Was the divorce not entered in the county where the property is 
located?  If not, would recording the divorce decree in that county 
satisfy the bank and title company, given the husband's name should no 
longer appear as a vested owner?

Finally, a longer term solution.  RCW 6.13.060 needs to be amended or 
even repealed.  IMHO it's a holdover from 100 years ago, and it's 
unnecessary given the other provisions that relate to community 
property.  Note this statute applies even if the property at issue is 
the separate property of the borrowing spouse, the spouses are separated 
and the other spouse doesn't live in the property.  There is absolutely 
no reason for its application on those facts.

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

On 7/30/2021 12:03 PM, Andrew Hay wrote:
>
> Get Ex-Husband QCD into escrow for recording when loan funds. 
> Condition loan funding on recording QCD
>
> *Andrew Hay*
>
> Hay & Swann PLLC
>
> 201 S. 34^th St.
>
> Tacoma, WA 98418
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> /www.washingtonlaw.net <http://www.washingtonlaw.net/>/
>
> /andrewhay at washingtonlaw.net <mailto:andrewhay at washingtonlaw.net>/
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> *From:*wsbarp-bounces at lists.wsbarppt.com 
> <wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Ryan P. Coon
> *Sent:* Friday, July 30, 2021 11:56 AM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* [WSBARP] Post-Divorce QCD Catch 22
>
> Listmates,
>
> I've got a client needing to record a QCD to separate property 
> post-divorce but is running into what seems to be a "catch 22" problem 
> so I'm looking for some creative solutions.
>
> Client by divorce decree is awarded the family home and thus needs to 
> record a QCD from ex-spouse to separate the property. However, there 
> is a large amount of outstanding property taxes due (several years 
> worth) and the county (Island) is refusing to record the deed without 
> the taxes being made current. Client doesn't have the funds to bring 
> taxes current so is seeking a loan to pay the taxes. However, client 
> is having trouble procuring a loan because the bank is requiring 
> signature of ex-spouse since ex-spouse's name is on the property but 
> ex-spouse will not sign off on the loan.
>
> Thus, client can't record a QCD because they don't have the money to 
> pay the taxes but their having trouble getting the money to pay the 
> taxes without first recording the QCD.
>
> Any thoughts or creative work-arounds for this would be much 
> appreciated, thank you.
>
> -- 
>
> Very Truly Yours,
>
> Ryan P. Coon
>
> Law Office of Cole & Gilday, P.C.
>
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