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<p class="MsoNormal"><span style="font-size:11.0pt">That is all very convoluted. In a real estate contract, title is not transferred to buyer until the contract is paid off in full and it is done via a “fulfillment deed” (the contract has been fulfilled).
If there is a Note and Deed of Trust recorded, then title has already changed to buyer but lender holds a security interest in the property (DOT) until the note is paid off. That is then released from title via a request for reconveyance to the trustee and
recording of a reconveyance by the trustee.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">It is unclear which scenario PC actually has because it cant (or should not) have both an unfulfilled contract and a Note and Deed of Trust.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:20.0pt;font-family:"Blackadder ITC"">Teena Williams</span></i></b><b><i><span style="font-size:20.0pt;font-family:"Blackadder ITC";mso-ligatures:none"><o:p></o:p></span></i></b></p>
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<p class="MsoNormal">1800 Cooper Point RD SW NO. 8 | Olympia, WA 98502 <o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Timothy Lehr<br>
<b>Sent:</b> Wednesday, January 21, 2026 8:23 AM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBARP] Seller financed and transferring title prior to payoff...pitfalls?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">All, <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I have a PC seller that sold a property on a seller financed RE contract a number of years back. There’s an executed promissory note and deed of trust. The RE contract contemplated a fulfillment deed to be recorded when the balance is paid
by buyer. There is still a balance owed, but seller wants to assist buyer by transferring title now so buyer can apply for flood insurance. Insurance company is saying she can only apply if she is the title holder.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Any pitfalls, considerations, or problems if seller transfers title now and keeps receiving payments via the promissory note?
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;mso-ligatures:none">Timothy C. Lehr<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">Attorney & Partner<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><img border="0" width="191" height="69" style="width:1.9895in;height:.7187in" id="Picture_x0020_1" src="cid:image003.jpg@01DC8AB3.9E0180F0"></span><span style="font-size:11.0pt;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">p: 360.855.0131<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">e: <a href="mailto:timothy@stileslaw.com">
timothy@stileslaw.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">w: <a href="http://www.stileslaw.com/">
www.stileslaw.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;mso-ligatures:none">NOTICE</span></b><span style="font-size:11.0pt;mso-ligatures:none">: The information contained in this email is proprietary and/or confidential and may be privileged. If you are not the
intended recipient of this communication, you are hereby notified to : (i) delete the email and all copies; (ii) not disclose, distribute or use the email in any manner; (iii) notify the sender immediately. Thank you.
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