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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060">Here’s a summary of my analysis.<o:p></o:p></span></p>
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<span style="font-size:10.0pt;font-family:"Arial",sans-serif">The SWD executed as a part of closing warrants the title clear of all encumbrances that have not been excepted at the time of closing. This is Seller’s problem, not Buyer’s.<o:p></o:p></span></li><li class="MsoListParagraph" style="color:#002060;margin-left:0in;mso-list:l0 level1 lfo1">
<span style="font-size:10.0pt;font-family:"Arial",sans-serif">At the time of recording DOT 2, Seller had no authority to encumber the property and thus DOT 2 does not attach to the property. Woe be to the beneficiary under DOT 2.<o:p></o:p></span></li><li class="MsoListParagraph" style="color:#002060;margin-left:0in;mso-list:l0 level1 lfo1">
<span style="font-size:10.0pt;font-family:"Arial",sans-serif">Even if Seller somehow had authority to encumber the property, the DOT recorded at closing (DOT 1) has priority over the one that was later recorded (DOT 2). Also, if there was ever any question
as to priority based on timing, the parties would need to consider whether or not DOT 2 was a purchase money deed of trust or otherwise.<o:p></o:p></span></li></ul>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35">Mark B. Anderson<br>
</span></b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35">ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com">marka@mbaesq.com</a><br>
<a href="http://www.mbaesq.com/">www.mbaesq.com</a><b><o:p></o:p></b></span></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial Narrow",sans-serif;color:#002060">CONFIDENTIALITY NOTICE<br>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></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>Rani K. Sampson<br>
<b>Sent:</b> 04/20/2022 11:07 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] 2nd DOT invalid - After-acquired title?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Segoe UI",sans-serif;color:#1F3864">Careful – QCDs do not convey after-acquired title unless words expressing such intention are added to the deed. RCW 64.04.050.<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Segoe UI",sans-serif;color:#142440"> Rani</span></b><b><span style="font-size:10.5pt;font-family:"Segoe UI",sans-serif;color:#142440"> K. Sampson<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="color:#1F3864"><img border="0" width="157" height="35" style="width:1.6354in;height:.3645in" id="Picture_x0020_1" src="cid:image001.png@01D8556E.5EE0E470"></span><span style="color:#1F3864"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Segoe UI",sans-serif;color:#142440"> 23 S Wenatchee Ave #320<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Segoe UI",sans-serif;color:#142440"> Wenatchee WA 98801</span><span style="font-size:10.0pt;font-family:"Segoe UI",sans-serif;color:#003300">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Segoe UI",sans-serif;color:#142440"> (509) 663-5588 x 108</span><span style="font-size:10.0pt;font-family:"Segoe UI",sans-serif;color:#003300"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Segoe UI",sans-serif;color:#1F3864"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> Wednesday, March 30, 2022 7:58 AM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> Re: [WSBARP] 2nd DOT invalid?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p>Thank you for that additional detail about the default. I had thought the only issue was priority.<o:p></o:p></p>
<p>Quit claim deeds pick up after-acquired title, but AFAIK, SWDs do not. Perhaps case law (or a statute) on deeds could be applied to DOTs. Of course it's really whatever the title company thinks<o:p></o:p></p>
<p>Kary L. Krismer<o:p></o:p></p>
<p>206 723-2148<o:p></o:p></p>
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<p class="MsoNormal">On 3/29/2022 1:42 PM, Douglas Scott wrote:<o:p></o:p></p>
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<p class="MsoNormal">I appreciate your thoughts. In clarification, the client seller had no knowledge of the 2nd DOT. Buyer defaulted in payments and said he'd Deed In Lieu the commercial property back to the client. But when the title was searched, the
client found the $440,000 2nd DOT. Client would rather not foreclose. There was no language in the 2nd DOT about it being signed before the closing but filed thereafter. <br clear="all">
<o:p></o:p></p>
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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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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><a href="http://www.rainieradvocates.com/" target="_blank"><span style="font-family:"Georgia",serif;color:#1155CC">www.rainieradvocates.com</span></a><o:p></o:p></span></p>
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<p class="MsoNormal">On Tue, Mar 29, 2022 at 12:46 PM David R. Ambrose <<a href="mailto:drambrose@ambroselaw.com">drambrose@ambroselaw.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">To the collective:<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">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" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">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" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Best,<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">David Ambrose<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><a href="mailto:drambrose@ambroselaw.com" target="_blank">drambrose@ambroselaw.com</a><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><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>Kary Krismer<br>
<b>Sent:</b> Tuesday, March 29, 2022 11:49 AM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com" target="_blank">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> Re: [WSBARP] 2nd DOT invalid?<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<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" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">On 3/29/2022 11:41 AM, Douglas Scott wrote:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">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" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:13.5pt">DOUGLAS W. SCOTT</span></b><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Georgia",serif">Rainier Legal Advocates|LLC</span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Georgia",serif">465 Rainier Blvd. N., Suite C </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Georgia",serif">Issaquah, Washington 98027 </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Georgia",serif">425.392.8550 (tel)</span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Georgia",serif">425.392.2829 (fax)</span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><a href="http://www.rainieradvocates.com/" target="_blank"><span style="font-family:"Georgia",serif;color:#1155CC">www.rainieradvocates.com</span></a></span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt"><o:p> </o:p></p>
<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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<p class="MsoNormal">***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.***<br>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><o:p> </o:p></p>
<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>
<pre><o:p> </o:p></pre>
<pre>_______________________________________________<o:p></o:p></pre>
<pre>WSBARP mailing list<o:p></o:p></pre>
<pre><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><o:p></o:p></pre>
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