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<p class="MsoNormal">Interesting fact pattern – almost exam like – from an out of state colleague:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">PSA says property is AS IS, with all faults, etc. Seller will not repair, knows nothing of the property. Buyer agrees.<o:p></o:p></p>
<p class="MsoNormal">Closing is set for Day 1 (just for simplicity). <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Day 1 Escrow has Buyer and Seller docs, funds, etc. and sends docs out to record.<o:p></o:p></p>
<p class="MsoNormal">Day 2 Title receives but does not record documents due to cut off.<o:p></o:p></p>
<p class="MsoNormal">Day 3 County is closed<o:p></o:p></p>
<p class="MsoNormal" style="text-indent:.5in">That night, massive windstorm comes and does significant damage to the deck on the property<o:p></o:p></p>
<p class="MsoNormal">Day 4 Buyer’s agent contacts Title and forbids them from recording transaction<o:p></o:p></p>
<p class="MsoNormal"> Seller claims transaction is already closed and recording is ministerial and property is AS IS anyway<o:p></o:p></p>
<p class="MsoNormal">Day 5 Buyer’s agent still blocking title and states that Buyer’s insurance refused claim because Buyer wasn’t the owner on the date of the storm.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Now, I have a number of thoughts about this but was curious about the collective wisdom. Clearly, to me, if one removed the escrow company from the equation, ownership transferred on day 1 when S gave B the deed and B gave S the funds.
Recording has to do with notice; not effectiveness of a transfer. I wonder, therefore, whether that is changed because of the neutral third party. This also reminds me of the recent thread on here about when Closing actually occurs. To me, B has no real
claim against S regardless of Closing. Either it was already B’s or B had already contracted to purchase the property AS IS. To be clear, I am not given to understand that the Buyer wants rescission or to cancel the transaction (depending on the interpretation
of when closing occurs), but, of course, wants S to replace the deck which, of course, S is not going to do for B or anyone.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I am curious of your thoughts on this. Was the transaction closed? Did the title company do the right thing by refusing to record? Does the S have some sort of claim against B since S remains the listed owner with the County for taxes
etc.? Given the incredible oversimplification and understanding that it depends on what the contract actually says, does B have a legitimate claim to halt the title company when S has already delivered the deed? And, for that matter, when is “delivery” from
S to B when an escrow is involved? <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Suffice to say, I responded with more questions than answers.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sincerely,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Richard L. Holland<o:p></o:p></p>
<p class="MsoNormal">WSBA#23921<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">603 4th Avenue, Suite 100
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt">Kirkland, WA 98033
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<p class="MsoNormal"><span style="font-size:10.0pt">877.785.8734 / 866.982.5080 (fax)<o:p></o:p></span></p>
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