<div dir="ltr"><div>A better case to review is
<h1>MAHALKO v. ARCTIC TRADING CO.
</h1><div class="gmail-citation">
<p id="gmail-ref_cite">99 Wn.2d 30, 659 P.2d 502 (1983)</p><p>
</p><p>Generally speaking, personal judgments become liens upon the real
property of the judgment debtor. RCW 4.56.190-.200. Such judgments do
not become liens upon real property to which the homestead exemption
applies. RCW 6.12 does provide two means by which a creditor may execute
against homestead property. RCW 6.12.100 subjects the homestead to
execution or forced sale in satisfaction of judgments obtained on debts
secured in various specified manners, including "debts secured by ...
mortgages on the premises, executed and acknowledged by the husband and
wife ..." RCW 6.12.100(2). The homestead exemption does not apply to the
types of secured creditors covered by RCW 6.12.100. <i>See</i> RCW 6.12.045.</p>
<p>All other creditors may only reach the homestead property through the
excess value provisions of the statute. RCW 6.12.140-.280. These
sections set out the procedures by which an appraisement of the
homestead property may occur. If the value of the property exceeds the
value of the homestead exemption, an appraiser must determine if the
property is divisible. RCW 6.12.200. If the property is indivisible, the
court must make an order directing the sale of the property under
execution, RCW 6.12.230, with the proceeds going first to the judgment
debtor in the amount of the homestead exemption; second, to satisfaction
of the execution; and third, if there is a remaining balance, to the
judgment debtor. RCW 6.12.250.</p>
</div>
</div><div>
<p> In Washington, a judgment lien usually attaches to
the debtor's real property in the trial court's county at the time the
judgment is entered. RCW 4.56.190. However, as long ago as 1898, this
court stated in <i>Traders' Nat'l Bank v. Schorr,</i> 20 Wn. 1, 8-9, 54 P. 543 (1898) that:</p>
<span>Provision is made by our statutes for reaching the excess in value
of real estate claimed as a homestead over the amount exempted, but it
is not the ordinary enforcement of the lien or a sale under execution.
It is a special mode of sale after an appraisement. We think it is
apparent, from an examination of the legislation creating and protecting
the homestead in this state, and the construction placed upon such
statutes by this court, that a general judgment lien does not operate
upon, and does not attach to, premises which constitute a homestead, and
the view taken by counsel for respondents that such lien may attach to
the excess in value above the homestead exemption is erroneous.</span>
<p>Mahalko contends the above language is dicta and does not have
precedential value. Lest there be any confusion about the effect of the
above language in the <i>Traders</i> case, we affirm it here. It is
consistent with a line of cases which enjoined the sale of homesteads
under the general execution statutes when a declaration of homestead was
filed before the sale. <i>Security Nat'l Bank v. Mason,</i> 117 Wn. 95, 200 P. 1097 (1921); <i>Kenyon v. Erskine,</i> 69 Wn. 110, 124 P. 392 (1912); <i>Snelling v. Butler,</i>
66 Wn. 165, 119 P. 3 (1911). Even where there is excess value upon
which to execute, we hold the creditor must proceed under the homestead
act. <i>Kenyon,</i> at 111-12. The language of <i>Traders</i> is also
consistent with a long line of Washington cases holding that when a
homestead declaration occurs prior to a judgment, the judgment does not
become a lien upon the property except as provided by RCW 6.12.100
(debts secured by mortgages, mechanic's and laborer's liens, etc.). <i>Webster v. Rodrick,</i> <span><a href="https://www.leagle.com/cite/64%20Wn.2d%20814">64 Wn.2d 814</a></span>, <span><a href="https://www.leagle.com/cite/394%20P.2d%20689">394 P.2d 689</a></span> (1964); <i>Lien v. Hoffman,</i> <span><a href="https://www.leagle.com/cite/49%20Wn.2d%20642">49 Wn.2d 642</a></span>, <span><a href="https://www.leagle.com/cite/306%20P.2d%20240">306 P.2d 240</a></span> (1957); <i>Barouh v. Israel,</i> <span><a href="https://www.leagle.com/cite/46%20Wn.2d%20327">46 Wn.2d 327</a></span>, <span><a href="https://www.leagle.com/cite/281%20P.2d%20238">281 P.2d 238</a></span>
(1955). While none of these cases specifically addressed the question
of whether a judgment becomes a lien on the excess value of the
homestead from the time the judgment is entered, the policy reasons
underlying the homestead act support the view that such a lien does not
attach.</p>
</div></div><br><div class="gmail_quote"><div dir="ltr">On Tue, Jan 8, 2019 at 3:27 PM <<a href="mailto:nestor@pplsweb.com">nestor@pplsweb.com</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div lang="EN-US"><div class="gmail-m_-4054730706885593251WordSection1"><p class="MsoNormal">I believe the question posed related to an existing judgment that attached prior to purchase through Seller or a prior owner, which in that event would have priority over the PMM.<u></u><u></u></p><p class="MsoNormal"><u></u> <u></u></p><p class="MsoNormal">Did the judgment holder make a claim? <u></u><u></u></p><p class="MsoNormal"><u></u> <u></u></p><p class="MsoNormal"><span style="color:black">Nestor Gorfinkel, Attorney at Law<u></u><u></u></span></p><p class="MsoNormal"><span style="color:black">Licensed in Washington & Florida<u></u><u></u></span></p><p class="MsoNormal"><span style="color:black">Florida Civil-Law (International) Notary<u></u><u></u></span></p><p class="MsoNormal"><span style="color:black"><u></u> <u></u></span></p><p class="MsoNormal"><b><span style="font-size:10pt;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.<u></u><u></u></span></b></p><p class="MsoNormal"><b><span style="font-size:10pt;color:black"><u></u> <u></u></span></b></p><p class="MsoNormal"><b><span style="font-size:24pt;font-family:Webdings;color:rgb(0,153,0)">P</span></b><b><span style="font-size:24pt;color:rgb(0,153,0)"> </span></b><b><span style="font-size:9pt;font-family:"Verdana",sans-serif;color:rgb(0,153,0)">Please consider the environment before printing this e-mail.</span></b><span style="font-family:"Century Schoolbook",serif;color:black"><u></u><u></u></span></p><p class="MsoNormal"><u></u> <u></u></p><p class="MsoNormal"><u></u> <u></u></p><p class="MsoNormal"><u></u> <u></u></p><div><div style="border-color:rgb(225,225,225) currentcolor currentcolor;border-style:solid none none;border-width:1pt medium medium;padding:3pt 0in 0in"><p class="MsoNormal"><b>From:</b> <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">wsbarp-bounces@lists.wsbarppt.com</a>> <b>On Behalf Of </b>John McCrady<br><b>Sent:</b> Tuesday, January 8, 2019 11:29 AM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com" target="_blank">wsbarp@lists.wsbarppt.com</a>><br><b>Subject:</b> Re: [WSBARP] Lien priority question<u></u><u></u></p></div></div><p class="MsoNormal"><u></u> <u></u></p><p class="MsoNormal"><span style="color:rgb(31,73,125)">As a purchase money mortgage, it takes priority against previously entered judgments against the purchaser.<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)">Sorry, I don’t have access to the authority for that statement right now<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)"><u></u> <u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)"><u></u> <u></u></span></p><div><p class="MsoNormal"><span style="color:rgb(31,73,125)">John McCrady<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)">Counsel<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)">Puget Sound Title Company<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)">5350 Orchard Street West<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)">University Place WA 98467<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)">253-476-5721<u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)"><a href="mailto:j.mccrady@pstitle.com" target="_blank">j.mccrady@pstitle.com</a><u></u><u></u></span></p></div><p class="MsoNormal"><span style="color:rgb(31,73,125)"><u></u> <u></u></span></p><div><div style="border-color:rgb(225,225,225) currentcolor currentcolor;border-style:solid none none;border-width:1pt medium medium;padding:3pt 0in 0in"><p class="MsoNormal"><b>From:</b> <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>Jay Goldstein<br><b>Sent:</b> Tuesday, January 08, 2019 9:32 AM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com" target="_blank">wsbarp@lists.wsbarppt.com</a>><br><b>Subject:</b> Re: [WSBARP] Lien priority question<u></u><u></u></p></div></div><p class="MsoNormal"><u></u> <u></u></p><div><p class="MsoNormal"> First in time, first in right.<span style="font-size:12pt"><u></u><u></u></span></p></div><div><p class="MsoNormal">See RCW 65.08.060(3) and<u></u><u></u></p></div><div><p class="MsoNormal">65.08.070<u></u><u></u></p><div><p class="MsoNormal"> <u></u><u></u></p></div><div><p class="MsoNormal">J<br> <u></u><u></u></p><div id="gmail-m_-4054730706885593251AppleMailSignature"><p class="MsoNormal">Sent from my iPad <u></u><u></u></p><div><p class="MsoNormal"><u></u> <u></u></p><div><p class="MsoNormal">Goldstein Law Office<u></u><u></u></p><div><p class="MsoNormal">Jay Goldstein<u></u><u></u></p></div><div><p class="MsoNormal">1800 Cooper Point Rd SW #8<u></u><u></u></p></div><div><p class="MsoNormal">Olympia, WA 98502<u></u><u></u></p></div></div><div><p class="MsoNormal">360 352 1970<u></u><u></u></p></div><div><p class="MsoNormal"><a href="mailto:Jay@jaglaw.net" target="_blank">Jay@jaglaw.net</a><u></u><u></u></p></div><div><p class="MsoNormal"><a href="http://Jaglaw.net" target="_blank">Jaglaw.net</a><u></u><u></u></p></div></div></div><div><p class="MsoNormal" style="margin-bottom:12pt"><br>On Jan 7, 2019, at 4:11 PM, Patrick McDonald <<a href="mailto:pmcdonald@podymcdonaldlaw.com" target="_blank">pmcdonald@podymcdonaldlaw.com</a>> wrote:<u></u><u></u></p></div><blockquote style="margin-top:5pt;margin-bottom:5pt"><div><p class="MsoNormal">Hi, <u></u><u></u></p><p class="MsoNormal"> <u></u><u></u></p><p class="MsoNormal">I have a question regarding the relative priority of two liens encumbering a property. <u></u><u></u></p><p class="MsoNormal"> <u></u><u></u></p><p class="MsoNormal">If a judgment is entered in the superior court in the county in which the property is located, it is a lien against that property. What if the property is purchased after the judgment is entered and there is a purchase money deed of trust recorded at the same time the property is purchased. Does the judgment that was entered previously take priority over the deed of trust that secures a purchase money loan? <u></u><u></u></p><p class="MsoNormal"> <u></u><u></u></p><p class="MsoNormal">Thanks,<u></u><u></u></p><p class="MsoNormal"> <u></u><u></u></p><p class="MsoNormal">Patrick McDonald<u></u><u></u></p><p class="MsoNormal"><b>_______________________</b><u></u><u></u></p><p class="MsoNormal"><b>Pody & McDonald, PLLC</b><u></u><u></u></p><p class="MsoNormal">1200 Fifth Avenue, Suite 1410<u></u><u></u></p><p class="MsoNormal">Seattle, WA 98101-3106<u></u><u></u></p><p class="MsoNormal">T: 206-467-1559<u></u><u></u></p><p class="MsoNormal">F: 206-467-4489<u></u><u></u></p><p class="MsoNormal"> <u></u><u></u></p></div></blockquote><blockquote style="margin-top:5pt;margin-bottom:5pt"><div><p class="MsoNormal"><span style="font-size:12pt;font-family:"Times New Roman",serif">_______________________________________________<br>WSBARP mailing list<br><a href="mailto:WSBARP@lists.wsbarppt.com" target="_blank">WSBARP@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><u></u><u></u></span></p></div></blockquote></div></div></div></div>_______________________________________________<br>
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