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<p class="MsoNormal">To the collective:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">1. As to the direct question, I am not aware of any Washington law which would render the 2<sup>nd</sup> DOT invalid if executed before the grantor even held title to the subject property. There could certainly be language in the 2<sup>nd</sup>
DOT and presumably some promissory note which provided that the 2<sup>nd</sup> DOT would be recorded on the subject property if and when the grantor acquired ownership of the subject property. And even if there wasn’t any such language, as the 2<sup>nd</sup>
DOT wasn’t recorded until after the grantor/buyer acquired ownership of the subject property, it wasn’t a lien or cloud on title against the seller’s property. Query whether the beneficiary under the 2<sup>nd</sup> DOT understood what the terms of the purchase
price would be and that there would be a 1<sup>st</sup> DOT in favor of the seller?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">2. Doesn’t sound like there is a priority issue, assuming the facts as stated that the seller didn’t know of the executed 2<sup>nd</sup> DOT, and that it was recorded nine days after the closing (and presumably after recording of the 1<sup>st</sup>
DOT. This would technically satisfy the race/notice provision of RCW 65.08.070, and it’s irrelevant from that standpoint as to when the 2<sup>nd</sup> DOT was executed. I think the more interesting question is what would have happened if the seller knew
of the 2<sup>nd</sup> DOT before closing? At the time of execution, the grantor under the 2<sup>nd</sup> DOT had no interest in the subject property, and could not have validly recorded the 2<sup>nd</sup> DOT. So, does this knowledge kick in and put the
2<sup>nd</sup> DOT effectively in first position, if the seller went ahead and just closed and recorded the seller’s deed, followed immediately by the recording of the 1<sup>st</sup> DOT? Of course, if the seller had notice, presumably the seller would never
have closed on the sale without addressing this issue. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Best,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">David Ambrose<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:drambrose@ambroselaw.com">drambrose@ambroselaw.com</a><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> Tuesday, March 29, 2022 11:49 AM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> Re: [WSBARP] 2nd DOT invalid?<o:p></o:p></p>
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<p>Assuming no knowledge of the 2nd DOT, wouldn't client be a BFP and thus take clear of the 2nd DOT? If that's not the purpose of recording statutes, I don't know what is.<o:p></o:p></p>
<p>Did client have title insurance? If so, that would cover the DOT even if it recorded a couple of hours or days before the deed.<o:p></o:p></p>
<pre>Kary L. Krismer<o:p></o:p></pre>
<pre>206 723-2148<o:p></o:p></pre>
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<p class="MsoNormal">On 3/29/2022 11:41 AM, Douglas Scott wrote:<o:p></o:p></p>
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<p class="MsoNormal">Client sells property to buyer securing the substantial balance of the payments by a 1st DOT. Unknown to the client, 2 months before the sale, the buyer had signed a 2nd DOT which buyer then recorded 9 days after the sale closed. Would
executing the 2nd DOT 2 months before the buyer even bought the property render the 2nd DOT invalid?
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<p class="MsoNormal"><b><span style="font-size:13.5pt;font-family:"Open Sans",sans-serif;color:#6E8F94">DOUGLAS W. SCOTT</span></b><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Georgia",serif">Rainier Legal Advocates|LLC</span><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Georgia",serif">465 Rainier Blvd. N., Suite C </span><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Georgia",serif">Issaquah, Washington 98027 </span><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Georgia",serif">425.392.8550 (tel)</span><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Georgia",serif">425.392.2829 (fax)</span><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<pre>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<o:p></o:p></pre>
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<pre>_______________________________________________<o:p></o:p></pre>
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