[WSBARP] Torrens Wind Down

[Mark Anderson]

My read of the revised statute is that you can surrender to the Registrar the duplicate certificate, a certified copy, or an affidavit that meets the requirements of the new Section 4.  The Registrar is required to accept that document, issue a certificate of withdrawal, and record the certificate of withdrawal in the county records, along with other documents that relate to outstanding interests in the property.  All of this is “without charging therefor” or “without charge” per the new Section 4.  I don’t see any restrictions in the revised statute that address outstanding property taxes, except as they might appear as a recorded lien on the property.

If you don’t apply to take the property out of the Torrens system, it will be taken out for you on July 1, 2023.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of JOHN J SULLIVAN
Sent: 06/07/2022 1:34 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Torrens Wind Down

Listmates:

Over the course of my 37+ years in practice I've had about a dozen situations where I had to interact with the Torrens land registration system. I hated it. My practice had been to strongly recommend withdrawal every time I came into contact with it, and to rant about the need to repeal it every change I got.

Well, my prayers have been answered.

But I have one hangover from it. I have clients who owned a commercial parcel in Burien they purchased on a real estate contract back in the 1960's. They died a few years ago and now their son wants to contribute the parcel to a family LLC. Problem was the parcel had been transferred twice before via real estate contracts and nobody had given a thought to transferring the Certificate of Title for two generations.

So I had to do a quiet title action with service by publication. I got my Order, ran it through the Beresford firm and got a judgment. Then I ran into one last speed bump: for various reasons we do not need to get into my client fell behind on his property taxes. Under the Torrens system the Registrar will not cancel and reissue a Certificate of Title without a clean report from the Assessor.

Well now I've read the bill repealing the system. Can anyone riddle me this? If I'm reading it right, I should be able to get the Registrar to withdraw the parcel from the Torrens system. Then I should be able to convey the parcel from the estates to the family LLC without waiting for the property taxes to be paid current. Anyone read that differently? Know something I don't know?
Best regards,

John J. Sullivan

Attorney

Lyons | Sullivan
10655 NE 4th Street, Suite 704
Bellevue, WA  98004
425·451·2400 tel 425-451-7385 fax
www.dljslaw.com<http://www.dljslaw.com/>

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