[WSBARP] FW: Title passes to heirs immediately upon death

[Paul Neumiller]

This from the nationwide DIRT listserv.  No surprises here.


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From: DIRT - Real Estate Lawyers Listserv <DIRT at LISTSERV.UMKC.EDU> On Behalf Of Whitman, Dale
Sent: Wednesday, March 10, 2021 12:50 PM
To: DIRT at LISTSERV.UMKC.EDU
Subject: [DIRT] Title passes to heirs immediately upon death

Recent Development
JP Morgan Chase Bank, NA v. Unknown Heirs & Devisees of Porter, 2021 WL 776249 (Wash. Ct. App. Mar. 1, 2021)
Title of decedent passes to heirs immediately upon death, and does not depend on estate administration
Prepared by Dale Whitman

John Porter died in 2017; he was unmarried and left no will. His only asset was a house, on which JP Morgan Chase held a deed of trust. John's heirs were his parents. However, no administration of the estate was ever held.

In 2018 JP Morgan Chase filed a judicial foreclosure action and obtained a default judgment of foreclosure. At the foreclosure sale, Vera Semenyuk was the successful purchaser. However, by statute Washington allows a post-sale redemption period of eight months after the sale.

Porter's parents, in their capacity as Porter's heirs, assigned their post-sale redemption right to Madrona Lisa LLC, which in turn tendered the redemption amount. However, Semenyuk disputed Madrona Lisa's right to redeem on the ground that no administration of the estate had occurred, and this litigation commenced.

The court held that Madrona Lisa had the right to redeem. The relevant Washington statute provides:

[When a person dies owning land] his or her title shall vest immediately in his or her heirs or devisees, subject to his or her debts, family allowance, expenses of administration, and any other charges for which such real estate is liable under existing laws. No administration of the estate of such decedent, and no decree of distribution or other finding or order of any court shall be necessary in any case to vest such title in heirs or devisees, but the same shall vest in the heirs or devisees instantly upon the death of a decedent.

Thus, the court held that title passed to the heirs at the moment of the decedent's death, subject to the obligation to pay the decedent's debts and other expenses for which the estate was liable. In this case, because more than 2 years had elapsed since death, any claims of creditors would be barred by the statute of limitations, and there were no other expenses. The assignment of the redemption right by the heirs to Madrona Lisa was valid and effective, as was the tender of the redemption amount.

COMMENT. The Washington statute quoted above simply restates the common law: real property passes to the heirs or devisees instantly upon death, although that title is subject to being revoked if necessary to pay the decedent's debts or other claims. No probate or estate administration is needed to make title pass. It's true that sometimes the identity of the heirs or devisees is uncertain or disputed at the time of death, but theoretically they have title. In this case "title" was simply the right of redemption; that was the only remaining right of the decedent, since the property had been sold at foreclosure. So that aspect of title remained in the heirs or their assignee.

Obviously, an administration of the estate or a court order determining heirship would be necessary to make the heirs' or devisees' title marketable for purposes of resale; but that was not an issue here.

Dale A. Whitman
Professor of Law Emeritus
University of Missouri-Columbia
whitmand at missouri.edu<mailto:whitmand at missouri.edu>


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