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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>Here are three points to ponder:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><ul style='margin-top:0in' type=disc><li class=MsoListParagraph style='margin-left:0in;mso-list:l2 level1 lfo4'>I never feel comfortable relying on a title policy especially when you know of the deficiency in advance. Also be careful of exclusion 3(a) under the ALTA policy regarding known defects.<o:p></o:p></li><li class=MsoListParagraph style='margin-left:0in;mso-list:l2 level1 lfo4'>I don’t know anyone who likes filing a claim.<o:p></o:p></li><li class=MsoListParagraph style='margin-left:0in;mso-list:l2 level1 lfo4'>What about future marketability?<o:p></o:p></li></ul><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I see a recipe for disaster.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><span style='color:black'>Nestor Gorfinkel, Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Licensed in Washington & Florida<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Florida Civil-Law (International) Notary<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;color:black'>ATTENTION - This e-mail message and any attachment to this e-mail message may contain confidential information that is legally privileged. If you are not the intended recipient, you must not review, retransmit, convert to hard copy, copy, use or disseminate this e-mail or any attachments to it. If you have received this e-mail in error, please notify us immediately by return e-mail or by telephone at the phone numbers provided herein and delete this message. Please note that if this e-mail message contains a forwarded message or is a reply to a prior message, some or all of the contents of this message or any attachments may not have been produced by the sender.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;color:black'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:24.0pt;font-family:Webdings;color:#009900'>P</span></b><b><span style='font-size:24.0pt;color:#009900'> </span></b><b><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#009900'>Please consider the environment before printing this e-mail.</span></b><span style='font-family:"Century Schoolbook",serif;color:black'><o:p></o:p></span></p></div><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>marc holmeslawgroup.com<br><b>Sent:</b> Tuesday, March 20, 2018 11:27 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Cc:</b> kim holmeslawgroup.com <kim@holmeslawgroup.com><br><b>Subject:</b> [WSBARP] 3 story house meets 2 story CCR restriction<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>We have a client set to buy a brand new 3 story house and, lo and behold, the builder didn’t notice or ignored a CCR restriction limiting homes to no more than 2 stories. Title company says the ALTA Homeowner’s policy covers this and points to a “covered risk” provision that reads:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.25in'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>You are forced to correct or remove an existing violation of any covenant, condition or restriction affecting the Land, even if the covenant, condition or restriction is excepted in Schedule B. However, You are not covered for any violation that relates to:<o:p></o:p></span></p><ol style='margin-top:0in' start=1 type=a><li class=MsoNormal style='margin-left:.25in;mso-list:l1 level1 lfo3'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Any obligation to perform maintenance or repair on the Land; or<o:p></o:p></span></li><li class=MsoNormal style='margin-left:.25in;mso-list:l1 level1 lfo3'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Environmental protection of any kind, including hazardous or toxic conditions or substances.<o:p></o:p></span></li></ol><p class=MsoNormal style='margin-left:.25in'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>unless there is a notice recorded in the Public records, describing any part of the Land, claiming a violation exists. Our liability for this Covered Risk is limited to the extent of the violation stated in that notice.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>We’re not aware of any publicly recorded notice of that the 3<sup>rd</sup> story is a violation. Does this seem like adequate protection for the buyer or a recipe for disaster?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Marc Holmes<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Holmes Law Group PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>2303 W. Commodore Way, # 306<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Seattle WA 98199<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><a href="http://holmeslawgroup.com/">HolmesLawGroup.com</a><span style='color:#1F497D'><o:p></o:p></span></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><a href="mailto:marc@holmeslawgroup.com">marc@holmeslawgroup.com</a><span style='color:#1F497D'><o:p></o:p></span></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Ofc: 206-357-4224<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Cell: 206-849-0853<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>