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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Without doing any research, I am surprised if this answer is correct. I believe that a nonjudicial foreclosure does wipe out an easement that was granted across the tenement estate subsequent in time to the deed of trust. Just as with boundary line adjustments or anything that affects real property, I have always advised getting the lender’s approval first. As an example, a party wanted an easement across a condo’s common area. We were advised by the title company (and my own assumption) to get all of the owners’ approval AND their lenders for the easement to withstand a foreclosure by a condo owner’s lender.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>As a lender, I would want to know the value of my security when I make the loan and when (and if) I need to foreclose. Why would I accept security in property if a borrower were able to willy-nilly decrease the value of my security by granting all kinds of easements across the property? <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Once again, without doing research, I would answer that B is screwed and that life is unfair. A and B should have gotten A’s lender’s permission before they entered into a deal that encumbered A’s property that was subject to his lender’s deed of trust.</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:white'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Tom J. Westbrook<br><b>Sent:</b> Tuesday, February 17, 2015 5:51 PM<br><b>To:</b> WSBA Real Property Listserv<br><b>Subject:</b> Re: [WSBARP] Effect of Lender Foreclosure on Easement Agreement<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Hi Ron,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>As you stated, if the easement is appurtenant to and runs with the land, no foreclosure would extinguish the easement. The foreclosing person (C) should have gotten title insurance when they elected to purchase at Trustee’s sale and if they did and it was not disclosed, then the title company may have a problem to C. If they didn’t, then too bad, it was a matter of public record. Not sure if the burden to build a public road was an easement requirement or a contractual agreement between two parties. You will need to research that – or at least, I would have to since I don’t know.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Sincerely,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Tom<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Thomas J. Westbrook<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#44546A'><img width=170 height=67 id="Picture_x0020_3" src="cid:image001.jpg@01D04B60.F41E1460" alt="cid:image001.jpg@01CFC835.0D3988D0"></span><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Rodgers, Kee & Card<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>324 West Bay Drive NW, Suite 201<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Olympia, Washington 98502<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Phone: 360-352-8311<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Facsimile: 360-352-8501<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Email: <a href="mailto:tjw@buddbaylaw.com">tjw@buddbaylaw.com</a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'>Skype: thomas.westbrook<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><a href="http://www.buddbaylaw.com">www.buddbaylaw.com</a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial",sans-serif;color:#44546A'>The information contained in this email and attachment(s) are for the exclusive use of the addressee(s) and may contain private, privileged and/or confidential information. If you are not the addressee, you are strictly prohibited from reading, photocopying, distributing or otherwise using this email or its contents in any way. If you have received this communication in error, please notify us immediately by telephone at 360-352-8311 or by e-mail to <a href="mailto:reception@buddbaylaw.com">reception@buddbaylaw.com</a>, and destroy the original message from your electronic files.<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#44546A'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Ron Housh<br><b>Sent:</b> Tuesday, February 17, 2015 5:16 PM<br><b>To:</b> 'WSBA Real Property Listserv'<br><b>Subject:</b> Re: [WSBARP] Effect of Lender Foreclosure on Easement Agreement<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>A grants B an easement across A’s land.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>B agrees to develop a public road on the easement which road will then benefit both A and B who plan to separately develop their respective properties with single family homes.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>B “goes under” and loses his property to a lender foreclosure.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>C acquires B’s property from the lender.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>C does not want the easement and when presented with the recorded easement says “the easement was extinguished at the time of the foreclosure.” C obviously does not want to be burdened with having to build the public road.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><span style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> I don’t believe the easement is extinguished – in other words I do not believe foreclosures typically if ever extinguish easements.<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><span style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>But – I am not sure about C’s obligation to build a public road. C never assumed or agreed to assume that obligation. Would the “run with the land” language in the recorded easement effectively pass the burden of building a public road to C? <o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><span style='mso-list:Ignore'>3.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Related question: easement was recorded in 2007. B actually did some work on the easement that was part of the public road construction process. If the burden of building the public road does pass to C, when would a cause of action against B (and now C) accrue? Wondering if there may be a statute of limitations issue? <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.25in'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Thanks in advance for thoughts.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Ron <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><b><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Arial",sans-serif;color:red'>I AM TYPICALLY IN THE SEATTLE OFFICE ON TUESDAY AND THURSDAY AND IN THE MOUNT VERNON OFFICE ON MONDAY, WEDNESDAY AND FRIDAY <o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Ronald G. Housh, P.S.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Attorney at Law<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'> <o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Seattle Office:<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>1420 Fifth Avenue, Suite 3000<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Seattle, WA 98101-2393<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Phone: 206-381-1341<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Fax: 206-464-0461<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Email: <a href="mailto:ron@housh.org"><span style='color:#1F497D'>ron@housh.org</span></a><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Mount Vernon Office:<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>21411 Bluejay Place<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Mount Vernon, WA 98274<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Phone: 206-235-2459<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Email: <a href="mailto:ron@housh.org"><span style='color:#1F497D'>ron@housh.org</span></a><o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p> </o:p></span></b></p><div align=center><table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=900 style='width:6.25in'><tr><td width=486 valign=top style='width:243.0pt;padding:0in 0in 0in 0in'><p class=MsoNormal><span style='font-size:8.5pt;font-family:"Trebuchet MS",sans-serif;color:#5C5B5B'><o:p> </o:p></span></p></td><td width=414 style='width:207.0pt;padding:0in 0in 0in 0in'><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p></td></tr></table></div><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>