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--></style></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>All,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>A couple months back this ListServe had a discussion on it about a legislative proposal to eliminate the requirement that leases with a term over 1 year be notarized. At the time I posted an argument in opposition to the proposed legislation, and several others chimed in to support my position, and offer constructive input. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>It has now been brought to my attention that the WSBA Board of Governors, at its November 2-3 Meeting, is going to consider whether the WSBA will support the proposed legislation. (I am told that RPPT Executive indicated its support for the proposed legislation, but did not create any record of the reasoning behind such election to support.) I sent in my comments to <a href="mailto:barleaders@wsba.org">barleaders@wsba.org</a> as reproduced below, and I encourage you to do the same if this is of interest to you.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Best wishes,<o:p></o:p></p><p class=MsoNormal>Erik<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>[MY EMAIL TO BOARD OF GOVERNORS – <a href="mailto:barleaders@wsba.org">barleaders@wsba.org</a> ]<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'>Dear Bar Leaders,<o:p></o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'>Thank you for your service to our profession. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'>I am writing in regard to proposed legislation that would remove the requirement that leases in excess of 1 year be notarized. I believe the proposed legislation is well intended, but that it goes too far and would be harmful to the public interest for the reasons explained below. As a matter of background, in my career I have been a commercial real estate attorney, commercial real estate broker, and an owner and operator of commercial real estate. So I have seen this stuff from several relevant angles.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'> <o:p></o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'>I support the proposed legislation, HOWEVER, I encourage a modification. <b>I would encourage a continuing requirement for notarization of leases that are longer than 11 years.</b> Here is my thinking:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'> <o:p></o:p></span></p><ol style='margin-top:0in' start=1 type=1><li class=MsoNormal style='color:#212121;mso-list:l1 level1 lfo1'><u><span style='mso-ligatures:none'>Consistency in Reasoning – Deeds and Long Term Leases</span></u><span style='mso-ligatures:none'>. A lease of 99 years materially very close to a conveyance. If we are going to require notarization in deeds, then the same reasoning would result in the requirement for notarization of long-term leases. Since no one thinks that removing the requirement for notarizing deeds is a good idea, similarly no one should think that it is a good idea to remove the requirement for notarizing long term leases. <o:p></o:p></span></li></ol><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'> <o:p></o:p></span></p><ol style='margin-top:0in' start=2 type=1><li class=MsoNormal style='color:#212121;margin-bottom:12.0pt;mso-list:l0 level1 lfo2'><u><span style='mso-ligatures:none'>Notarization Mutes the Opportunity for Abuse</span></u><span style='mso-ligatures:none'>. The common characteristic to both long term leases and deeds, which is somewhat unique in the legal landscape, is that both documents have a term of relevance that nearly always extends beyond the lifetime of the party who signed the document. That makes it likely that the signing party (and witnesses) would be unavailable to testify as to the authenticity of the signature. The notary process helps address this issue. <o:p></o:p></span></li></ol><p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in'><span style='color:#212121;mso-ligatures:none'>The reasoning behind our requirement for notarization of deeds is to (a) prevent fraud and (b) allow for more efficient resolution of disputes in the instance of alleged fraud. If someone produces a copy of a 99 year lease 30 years after it was allegedly signed, and the purported lessor is deceased, it will be difficult for the parties to resolve whether or not the lease is in fact authentic. This difficulty is compounded by the fact that leases are not customarily recorded. The opportunity for abuse is that an unscrupulous party can produce a 99 year lease with a signature of a deceased person, and cause all sorts of difficulty for the owners of the land affected by the lease. <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in'><span style='color:#212121;mso-ligatures:none'>Although I am not very familiar with the law around testamentary wills, I believe there is a similarity to long term leases and deeds, in that it is inherently likely in regard to these 3 types of documents that the authenticity of the document will be called into question at a time when the signatory to the document is deceased. In testamentary wills, witnesses are required. For long term leases, a requirement for notarization would serve that role. (I believe some states require witnesses for long term leases; but for consistency with the remainder of Washington’s real estate conveyance law and custom, using notaries for long term leases, rather than witnesses, is likely the right answer.)<o:p></o:p></span></p><ol style='margin-top:0in' start=3 type=1><li class=MsoNormal style='color:#212121;margin-bottom:12.0pt;mso-list:l2 level1 lfo3'><u><span style='mso-ligatures:none'>Requiring Notarization Pushes Long Term Leases into Recordable Format</span></u><span style='mso-ligatures:none'>. Generally documents that are to be recorded must be notarized. While a person could still get a lease notarized, it will cease to be custom to do so. In my opinion it would be good if long-term leases remained in a form that could be recorded.<o:p></o:p></span></li><li class=MsoNormal style='color:#212121;mso-list:l2 level1 lfo3'><u><span style='mso-ligatures:none'>11 Year Rule Is Narrowly Tailored </span></u><span style='mso-ligatures:none'> If we require notarization of leases with a term longer than 11 years (renewal or extension terms should be included in the calculation of the term for the purposes of the notarization requirement), it will affect only a very very small percentage of leases; and those leases that it does effect are serious ones with significant terms, where the minimal hurdle of notarization is probably a good thing in that it prevents the parties from rushing to signature. I am recommending 11 years as a cutoff because it will avoid a notary requirement for customary “5+5 year term” leases (approximate 5 year initial term, with one 5-year renewal term) which are very common in the office and retail context. In my broad ranging professional experience, only a very small percentage of commercial leases, and effectively no residential leases, have a term in excess of 11 years. <o:p></o:p></span></li></ol><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'> <o:p></o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'>I hope this input is helpful.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:10.5pt;color:black;mso-ligatures:none'>-- <o:p></o:p></span></p><p class=MsoNormal><b><i><span style='font-size:10.5pt;font-family:"Arial",sans-serif;color:#4D573A;mso-ligatures:none'>Erik G Marks</span></i></b><span style='font-size:10.5pt;color:#4D573A;mso-ligatures:none'> </span><span style='font-family:"Times New Roman",serif;color:#4D573A;mso-ligatures:none'><o:p></o:p></span></p><p class=MsoNormal><b><i><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4D573A;mso-ligatures:none'>Attorney at Law</span></i></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#4D573A;mso-ligatures:none'> </span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:black;mso-ligatures:none'><br>PO Box 16247<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:black;mso-ligatures:none'>Seattle, WA 98116<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:black;mso-ligatures:none'> <br>(206) 612-8653<br></span><a href="mailto:erik@egmrealestate.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;mso-ligatures:none'>erik@egmrealestate.com</span></a><u><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue;mso-ligatures:none'><o:p></o:p></span></u></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:black;mso-ligatures:none'>Physical Office:<br>4220 SW Spokane St<br>Seattle, WA 98116<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#212121;mso-ligatures:none'> <o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal> <o:p></o:p></p></div></body></html>