<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 12 (filtered medium)"><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p.MsoAcetate, li.MsoAcetate, div.MsoAcetate
{mso-style-priority:99;
mso-style-link:"Balloon Text Char";
margin:0in;
margin-bottom:.0001pt;
font-size:8.0pt;
font-family:"Tahoma","sans-serif";}
span.BalloonTextChar
{mso-style-name:"Balloon Text Char";
mso-style-priority:99;
mso-style-link:"Balloon Text";
font-family:"Tahoma","sans-serif";}
span.EmailStyle19
{mso-style-type:personal;
font-family:"Calibri","sans-serif";
color:#1F497D;}
span.EmailStyle20
{mso-style-type:personal;
font-family:"Calibri","sans-serif";
color:#1F497D;}
span.EmailStyle21
{mso-style-type:personal;
font-family:"Calibri","sans-serif";
color:#1F497D;}
span.EmailStyle22
{mso-style-type:personal-reply;
font-family:"Times New Roman","serif";
color:windowtext;
font-weight:normal;
font-style:normal;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:14.0pt'>The other thing is, third parties. If the transfer was void, and a third party then gets an interest (say, by judgment against the transferor), then the transfer may not be automatically valid upon incorporation or whatever gives the transferee legal status to own property. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt'>Rob<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:14.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt'>Robert D. Wilson-Hoss <br>Hoss & Wilson-Hoss, LLP <br>236 West Birch Street <br>Shelton, WA 98584 <br>360 426-2999<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt'><a href="www.hossandwilsonhoss.com">www.hossandwilson-hoss.com</a><br><a href="rob@hctc.com">rob@hctc.com</a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><i><span style='font-size:11.0pt'>This message is intended solely for the use of the addressee and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If you are not the addressee, you are hereby notified that any use, distribution, or copying of this message is strictly prohibited. If you received this message in error, please notify us by reply e-mail or by telephone (call us collect at the number listed above) and immediately delete this message and any and all of its attachments. Thank you.<o:p></o:p></span></i></p><p class=MsoNormal><i><span style='font-size:11.0pt'><o:p> </o:p></span></i></p><p class=MsoNormal style='text-align:justify'><b><span style='font-size:10.0pt;text-transform:uppercase'>This office does debt collection and this e-mail may be an attempt to collect a debt, Any information obtained will be used for that purpose. </span></b><span style='font-size:10.0pt'>To the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. § 1692) applies this firm is acting as a debt collector for the condominium/homeowners' association named above to collect a debt owed to it. Any information obtained will be used for collection purposes. You have the right to seek advice of legal counsel.<b><span style='text-transform:uppercase'><o:p></o:p></span></b></span></p></div><p class=MsoNormal><span style='font-size:14.0pt'><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"'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Eric Nelsen<br><b>Sent:</b> Thursday, March 19, 2015 5:03 PM<br><b>To:</b> WSBA Real Property Listserv<br><b>Subject:</b> Re: [WSBARP] Transfer of title to entity that did not exist<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'>Interesting. I think the answer is in the intersection of pre-incorporation acts of a corporation, and in conveyance rules regarding status of a grantee.<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'>From the WSBA Real Property Deskbook, Vol. 1, Sec. 5.5(3):<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 general rule, the grantee must be a legal entity at the time of the grant; otherwise the transfer is void. <u>Loose v. Locke</u>, 25 Wn.2d 599, 171 P.2d 849 (1946). It seems, however, that courts will go to some length to avoid this result. In a later decision, a court held that a deed to a corporation, made prior to its organization, was valid between the parties, and title passed when the corporation was legally incorporated. <u>John Davis & Co. v. Cedar Glen No. Four, Inc.</u>, 75 Wn.2d 214, 450 P.2d 166 (1969). By analogy, this reasoning should apply to limited partnerships and limited liability companies, which also come into existence when the articles of formation are accepted by the state.<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'>But, also from the Deskbook, Sec. 5.6(3):<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 general rule, unincorporated associations (such as fraternal lodges, churches, or other religious, patriotic, or social organizations) cannot hold title to real property because they are not legal entities. <u>Grand Grove of U.A.O.D. v. Garibaldi Grove, No. 71, of U. A.O.D.</u>, 105 Cal. 219, 38 P. 947 (1894). Real property held in the name of this type of association generally is recognized as being owned by the members of the association. When one or more members take action with respect to such property, they are considered to be trustees, acting on behalf of the membership, in accordance with the by-laws and regulations of the organization.<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'>I know that's not directly on point, but what is a group of people acting like a corporation, without the formalities, but an "unincorporated association"? See RCW 23B.02.040:<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'>Liability for preincorporation transactions.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>All persons purporting to act as or on behalf of a corporation, <b>knowing there was no incorporation under this title</b>, are jointly and severally liable for liabilities created while so acting except for any liability to any person who also knew that there was no incorporation.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>[1989 c 165 § 29.]<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'>Plus, case law on the status of "corporate acts" made prior to actual incorporation. I don't have cites but I'm sure it's out there.<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'>Plus, will the IRS really be governed by state law when it comes to determining whether the pre-incorporation gifts were effective. If the <u>John Davis & Co</u> rule holds, does that mean that all the pre-incorporation gifts suddenly "became effective" upon incorporation, and so were all made simultaneously in the same year?<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'>That's what I've got.<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-family:"Calibri","sans-serif";color:#1F497D'>Sincerely,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>Eric<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>Eric C. Nelsen<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>1320 University St<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>Seattle WA 98101-2837<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>phone 206-625-0092<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>fax 206-625-9040<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><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><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>Jennifer Y. Sohn<br><b>Sent:</b> Thursday, March 19, 2015 4:33 PM<br><b>To:</b> 'WSBA Real Property Listserv'<br><b>Subject:</b> [WSBARP] Transfer of title to entity that did not exist<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;color:#1F497D'>I have an interesting situation where the clients (H&W) transferred their interest in real property to a company that was not formed until about 8 years after the transfer. During those 8 years, for purposes of estate planning, the H&W made various gifts to the children of the company interests. The company was actually formed about 8 years after H&W deeded the property to the company. Does this mean the transfer that the H&W made 8 years ago is void? The clients were confused too, and they also transferred some of their interest in the property to a trust too. I’m just trying to untangle this. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D'>Any insights would be appreciated.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D'>Thanks.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;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><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Best regards,<o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Jennifer Y. Sohn</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Attorney at Law <o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>(Licensed in CA and WA)</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Sohn Law PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D;background:white'>10900 NE 4th Street, Suite 1850<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D;background:white'>Bellevue, WA 98004</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Tel: 206.617.7874<o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Fax: 425.732.9748 <b><o:p></o:p></b></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Email: <a href="mailto:jennifer@sohn-law.com" target="_blank"><span style='color:#0563C1'>jennifer@sohn-law.com</span></a><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'><a href="http://www.sohn-law.com/" target="_blank"><span style='color:#0563C1'>http://www.sohn-law.com</span></a></span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Confidential. This electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. This information is intended only for the use of the individual or entity to whom this electronic mail transmission was sent as indicated above. If you are not the intended recipient, any disclosure, copying, distribution, or action taken in reliance on the contents of the information contained in this transmission is strictly prohibited. If you have received this transmission in error, please delete the message. Thank you.</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;color:#1F497D'>Circular 230 Disclaimer. Any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the internal revenue code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-size:11.0pt;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><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D'><o:p> </o:p></span></p></div></body></html>