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<p class="MsoNormal">Rich,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">It seems that S and B have a binding contract in which B agreed to accept the property AS-IS. There may also be a clause that required S to maintain the property in its current condition until closing. The standard Form 21 RREPSA contains
the following language at paragraph f, Closing and Possession:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><img width="620" height="66" style="width:6.4583in;height:.6875in" id="_x0000_i1027" src="cid:image001.png@01D6C7FF.38C1C820">
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">There could be an argument over whether a weather event constitutes “normal wear and tear,” but if this language was included in the PSA, S may have an obligation to return the property to the condition it was in when the parties reached
a mutual agreement. Absent that language, or if the PSA is clear that the property is being sold AS-IS no matter what the conditions (which could change between mutual acceptance and closing), I don’t believe S would. Have any obligation to perform repairs.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I don’t believe that the fact the transaction did not close on Day 1 (absent any fault on the party of S or B) provides sufficient grounds for rescission or to void the transaction. If the transaction failed to close due to the negligence
of S or B (i.e., one of the parties signed late), then my analysis would change. Assuming all docs were signed and ready to record on Day 1, I believe the title company may have some liability for its role in failing to record the documents on the instructed
date. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">My two cents, for whatever it’s worth.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Best regards,<o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">From: </span></b><span style="font-size:12.0pt;color:black"><wsbarp-bounces@lists.wsbarppt.com> on behalf of Rich Holland <rich@pnwle.com><br>
<b>Reply-To: </b>WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Date: </b>Tuesday, December 1, 2020 at 11:57 AM<br>
<b>To: </b>WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject: </b>[WSBARP] When is closing?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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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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