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<p>Dwight,</p>
<p><br>
</p>
<p>I'm not seeing that the sale of property subject to a judgment
would necessarily be an avoidable fraudulent conveyance due to the
many situations you mention later in your email. One of those
could simply be that the buyer was taking subject to the judgment,
and taking that risk. Even actual intent could be difficult since
the judgment creditor could still reach the property (unless maybe
a purchase money mortgage gained priority????). So wouldn't just
enforcing the judgment against the property would be the more
prudent way to go assuming there's value such that this is really
an issue?<br>
</p>
<p><br>
</p>
<p>But here's a question you could probably answer. I've always
been under the impression that a title company will look at the
nature of prior conveyances, and give ones that appear to be
outside ordinary course more scrutiny. So for example, if Jones
gave a QCD to Smith three years ago, and that appears to be a
private party transaction, the title company will be more likely
to look for judgments against Jones than if that prior transaction
was a SWD with a related DOT to Bank of America, and presumably
title insurance involved. Is that impression correct or
incorrect?<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
206 723-2148</pre>
<div class="moz-cite-prefix">On 11/23/2020 10:30 AM, Dwight Bickel
wrote:<br>
</div>
<blockquote type="cite"
cite="mid:MWHPR17MB1359D9AB684FB02235E61883C4FC0@MWHPR17MB1359.namprd17.prod.outlook.com">
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<div style="font-family: Calibri, Helvetica, sans-serif;
font-size: 12pt; color: rgb(0, 0, 0);">
Note that the entry of a Judgment in the Superior Court only
attaches as a lien if the property is not exempt as homestead.
Recording is also required as a condition to assert a lien upon
property protected by homestead. The duration of the Judgment
extends ten years from entry, not from recording.</div>
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font-size: 12pt; color: rgb(0, 0, 0);">
The later conveyance from the debtor, whether a sale or a
transfer without consideration, would not affect the lien upon
the land. If that conveyance was done before the entry of the
Judgment, that would prevent the automatic attachment. The
creditor would have to pursue an action against the grantee
under Chapter 19.40 RCW to set aside that conveyance.<br>
</div>
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<br>
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There is no assurance that the creditor can rely upon the escrow
and title company to pay the judgment upon a sale. I recommend
diligent prosecution of the creditor's rights by timely
execution procedures. It can be reasonable to await several
years for the property to inflate in value before execution
proceedings. Also, during such time the debtor owner may have
incentive to pay the debt or may have need to sell or refinance.</div>
<div style="font-family: Calibri, Helvetica, sans-serif;
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<br>
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<div style="font-family: Calibri, Helvetica, sans-serif;
font-size: 12pt; color: rgb(0, 0, 0);">
There are instances where the parties to a conveyance do not
seek title insurance. The escrow will assume no duty to search
for liens. Even if a title policy is purchased, there are
instances where a Judgment is not properly indexed, there are
instances where the title company fails to search, there are
instances where a Judgment is not properly found during a
search, there are instances where a Judgment is found but fails
to be shown on a commitment, there are instances where a
Judgment is shown on a title report but the seller offers an
indemnity to the title company to accept the risk that the
creditor might execute later against the purchaser. I am just
warning that the title company has no duty to the creditor to
pay a Judgment. </div>
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<br>
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<div style="font-family: Calibri, Helvetica, sans-serif;
font-size: 12pt; color: rgb(0, 0, 0);">
I have witnessed all of those instances. I remember long ago an
angry lawyer called me while I was counsel for the title
company, because the title company had closed a sale without
payment of his client's Judgment. The odd part was that the
incompetent lawyer did not realize that the lien was perfected
and remained enforceable after the sale. Instead, he thought the
lien was lost due to the sale, so he alleged he had a case
against the title company. I let him think that, and still feel
a little badly about it. That lawyer never enforced, nor pursued
his faulty claim. The title company would have been required to
pay under the owner's title policy to avoid the execution
against the insured purchaser.</div>
<div>
<div style="font-family: Calibri, Helvetica, sans-serif;
font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div id="Signature">
<div style="font-family:Calibri,Helvetica,sans-serif;
font-size:12pt; color:rgb(0,0,0)">
</div>
<span>Dwight A. Bickel<br>
</span>
<div>Washington Title Professional<br>
</div>
<div><a class="moz-txt-link-abbreviated" href="mailto:dwightbickel@hotmail.com">dwightbickel@hotmail.com</a><br>
</div>
<div><a class="moz-txt-link-abbreviated" href="http://www.linkedin.com/in/dwightbickel">www.linkedin.com/in/dwightbickel</a><br>
</div>
<div>206-484-1976<br>
</div>
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font-size:12pt; color:rgb(0,0,0)">
</div>
<div style="font-family:Calibri,Helvetica,sans-serif;
font-size:12pt; color:rgb(0,0,0)">
<br>
<br>
</div>
</div>
</div>
<div>
<div style="font-family:Calibri,Helvetica,sans-serif;
font-size:12pt; color:rgb(0,0,0)">
<br>
</div>
<hr tabindex="-1" style="display:inline-block; width:98%">
<div id="divRplyFwdMsg" dir="ltr"><font style="font-size:11pt"
face="Calibri, sans-serif" color="#000000"><b>From:</b>
<a class="moz-txt-link-abbreviated" href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp-bounces@lists.wsbarppt.com"><wsbarp-bounces@lists.wsbarppt.com></a> on behalf of
Kaitlyn Jackson <a class="moz-txt-link-rfc2396E" href="mailto:kaitlyn@dimensionlaw.com"><kaitlyn@dimensionlaw.com></a><br>
<b>Sent:</b> Monday, November 23, 2020 10:00 AM<br>
<b>To:</b> WSBA Real Property Listserv
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp@lists.wsbarppt.com"><wsbarp@lists.wsbarppt.com></a><br>
<b>Subject:</b> [WSBARP] Question about collecting judgment</font>
<div> </div>
</div>
<div>
<div dir="ltr">Hi all -
<div><br>
</div>
<div>In the case where a money Judgment is awarded in
Superior Court against a defendant who owns a couple of
properties in the same county that the judgment was
awarded, I think that such judgments automatically attach
to the properties so that if the defendants attempt to
sell either in the next 10 years, title would require this
judgment to be paid out of escrow. However, what happens
if the defendants execute a quit claim deed of the
property(ies) into a trust or to a family member or a
company and then the other entity sells the Property?
Would escrow catch this issue? Does anyone have any
general collection information here? </div>
<div><br>
</div>
<div>Thanks in advance for any push in the right direction
here.<br clear="all">
<div><br>
</div>
-- <br>
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