THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: WA000010
Bulletins by State or Territory
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Bulletin: WA000010
V
1
Date: December 12, 1989
To:
All Washington Agents
RE:
Unrecorded Leases
Dear Associates:
The Washington Court of Appeals has confirmed that a recorded deed of trust is subject to a previously unrecorded 20-year lease. Peoples National Bank v. Birney's Enterprises, 775 P.2d 466 (Wash. App. 1989). In this case the lessee was a corporation and the sole shareholder of the corporation was the owner of the land and grantor of the deed of trust.
Under the circumstances this seems like a crazy result. However, the court of appeals viewed the distinction between the individual and the corporation very strictly.
Please remember that the ALTA Extended Loan policy covers unrecorded leases. You should have an exception in those policies for unrecorded leases if you are insuring commercial property.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None