<font color='black' size='2' face='Arial, Helvetica, sans-serif'>
<div><font face="Arial, Helvetica, sans-serif" style="background-color: transparent;">I agree with John. The security interest created by the Deed of Trust is as to the unencumbered parcel, and that is what is foreclosed upon. But I think John makes an excellent point that the easement is only extinguished if the dominant estate is given notice.</font></div>
<div> </div>
<div>Steve</div>
<div> </div>
<div style="clear: both;">
<div><font face="Comic Sans MS, sans-serif">Stephen Whitehouse</font></div>
<div><font face="Comic Sans MS"><strong>Whitehouse & Nichols, LLP</strong></font></div>
<div><font face="Comic Sans MS">Attorneys at Law</font></div>
<div><font face="Comic Sans MS">P.O. Box 1273</font></div>
<div><font face="Comic Sans MS">601 W. Railroad Ave.</font></div>
<div><font face="Comic Sans MS">Shelton, Wa. 98584</font></div>
<div><font face="Comic Sans MS">360-426-5885</font></div>
<div><font face="Comic Sans MS"><a href="mailto:swhite8893@aol.com">swhite8893@aol.com</a></font></div>
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<div style="color: black; font-family: arial,helvetica; font-size: 10pt;">-----Original Message-----<br>
From: John McCrady <j.mccrady@pstitle.com><br>
To: WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
Sent: Wed, Feb 18, 2015 9:52 am<br>
Subject: Re: [WSBARP] Effect of Lender Foreclosure on Easement Agreement<br>
<br>
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<div class="MsoNormal"><span style="color: rgb(153, 51, 102);">Sorry for coming in so late but I wonder if this is correct in all respects. </span></div>
<div class="MsoNormal"><span style="color: rgb(153, 51, 102);">The deed of trust conveys to the trustee “all of Grantor’s right, title and interest in…” the property. The Notice of Trustee’s Sale should be sent to, among others: </span><span style='font-family: "Arial",sans-serif; font-size: 11pt;'>The vendee in any real estate contract, the lessee in any lease, or the <span style="background: yellow; mso-highlight: yellow;">holder of any conveyances of any interest or estate in any portion or all of the property</span> described in such notice, <span style="background: yellow; mso-highlight: yellow;">if that</span> contract, lease, or <span style="background: yellow; mso-highlight: yellow;">conveyance of such interest or estate</span>, or a memorandum or other notice thereof, <span style="background: yellow; mso-highlight: yellow;">was recorded after the recordation of the deed of trust being foreclosed</span> and before the recordation of the notice of sale;</span><span style="color: rgb(153, 51, 102);">” 61.24.040 (1) (b) (iii)</span></div>
<div class="MsoNormal"><span style="color: rgb(153, 51, 102);">It seems to me that an easement recorded subsequently to the foreclosing deed of trust would be treated like a junior mortgage. If given notice of the Trustee’s Sale it would be wiped out by the Trustee’s Sale.</span></div>
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<div class="MsoNormal"><span style="color: rgb(153, 51, 102); font-family: HelveticaNeueETW01-55Rg; font-size: 11pt;">John McCrady</span></div>
<div class="MsoNormal"><span style="color: rgb(153, 51, 102); font-family: HelveticaNeueETW01-55Rg; font-size: 11pt;">Counsel</span><span style='color: rgb(153, 51, 102); font-family: "Calibri",sans-serif; font-size: 11pt;'></span></div>
<div class="MsoNormal"><span style='color: rgb(153, 51, 102); font-family: "Calibri",sans-serif; font-size: 11pt;'>Puget Sound Title Company</span></div>
<div class="MsoNormal"><span style='color: rgb(153, 51, 102); font-family: "Calibri",sans-serif; font-size: 11pt;'>5350 Orchard Street West</span></div>
<div class="MsoNormal"><span style='color: rgb(153, 51, 102); font-family: "Calibri",sans-serif; font-size: 11pt;'>University Place WA 98466</span></div>
<div class="MsoNormal"><span style='color: rgb(153, 51, 102); font-family: "Calibri",sans-serif; font-size: 11pt;'>253-476-5721</span></div>
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<div class="MsoNormal"><b><span style='font-family: "Calibri",sans-serif; font-size: 11pt;'>From:</span></b><span style='font-family: "Calibri",sans-serif; font-size: 11pt;'> <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>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</span></div>
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<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Hi Ron,</span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>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.</span></div>
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<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Sincerely,</span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Tom</span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Thomas J. Westbrook</span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Attorney at Law</span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Calibri",sans-serif; font-size: 11pt;'><img width="170" height="67" id="Picture_x0020_3" alt="cid:image001.jpg@01CFC835.0D3988D0" src="cid:image001.jpg@01D04B5D.ECE97930"></span><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'></span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Rodgers, Kee & Card</span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>324 West Bay Drive NW, Suite 201</span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Olympia, Washington 98502</span></div>
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<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Phone: 360-352-8311</span></div>
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<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Email: <a href="mailto:tjw@buddbaylaw.com" target="_blank">tjw@buddbaylaw.com</a></span></div>
<div class="MsoNormal"><span style='color: rgb(68, 84, 106); font-family: "Arial",sans-serif; font-size: 11pt;'>Skype: thomas.westbrook</span></div>
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<div class="MsoNormal"><b><span style='font-family: "Tahoma",sans-serif; font-size: 10pt;'>From:</span></b><span style='font-family: "Tahoma",sans-serif; font-size: 10pt;'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">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</span></div>
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<div class="MsoNormal"> </div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>A grants B an easement across A’s land.</span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>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.</span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>B “goes under” and loses his property to a lender foreclosure.</span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>C acquires B’s property from the lender.</span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>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.</span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoListParagraph" style="text-indent: -0.25in; mso-list: l0 level1 lfo2;"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'><span style="mso-list: Ignore;">1.<span style='font: 7pt/normal "Times New Roman"; font-size-adjust: none; font-stretch: normal;'> </span></span></span><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'> I don’t believe the easement is extinguished – in other words I do not believe foreclosures typically if ever extinguish easements.</span></div>
<div class="MsoListParagraph" style="text-indent: -0.25in; mso-list: l0 level1 lfo2;"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'><span style="mso-list: Ignore;">2.<span style='font: 7pt/normal "Times New Roman"; font-size-adjust: none; font-stretch: normal;'> </span></span></span><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>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? </span></div>
<div class="MsoListParagraph" style="text-indent: -0.25in; mso-list: l0 level1 lfo2;"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'><span style="mso-list: Ignore;">3.<span style='font: 7pt/normal "Times New Roman"; font-size-adjust: none; font-stretch: normal;'> </span></span></span><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>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? </span></div>
<div class="MsoNormal" style="margin-left: 0.25in;"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'> </span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>Thanks in advance for thoughts.</span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'>Ron </span></div>
<div class="MsoNormal"><span style='color: rgb(31, 73, 125); font-family: "Calibri",sans-serif; font-size: 11pt;'> </span></div>
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<div class="MsoNormal"><b><span style='color: red; font-family: "Arial",sans-serif;'>I AM TYPICALLY IN THE SEATTLE OFFICE ON TUESDAY AND THURSDAY AND IN THE MOUNT VERNON OFFICE ON MONDAY, WEDNESDAY AND FRIDAY </span></b></div>
<div class="MsoNormal"><b><span style='color: green; font-family: "Arial",sans-serif; font-size: 10pt;'> </span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Ronald G. Housh, P.S.</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Attorney at Law</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'> </span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Seattle Office:</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>1420 Fifth Avenue, Suite 3000</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Seattle, WA 98101-2393</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Phone: 206-381-1341</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Fax: 206-464-0461</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Email: <a href="mailto:ron@housh.org" target="_blank"><span style="color: rgb(31, 73, 125);"></span><a href="mailto:ron@housh.org">ron@housh.org</a></span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'> </span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Mount Vernon Office:</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>21411 Bluejay Place</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Mount Vernon, WA 98274</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Phone: 206-235-2459</span></b></div>
<div class="MsoNormal"><b><span style='color: rgb(31, 73, 125); font-family: "Arial",sans-serif; font-size: 11pt;'>Email: <a href="mailto:ron@housh.org" target="_blank"><span style="color: rgb(31, 73, 125);"></span><a href="mailto:ron@housh.org">ron@housh.org</a></span></b></div>
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