Bulletin: WA000023

Dear Associates:

The Washington Court of Appeals has ruled that a real estate contract may be abandoned by a vendee who fails to make payments over a long period of time. It is not necessary in these cases for a vendor to institute either a nonjudicial or judicial contract forfeiture. Schoneman v. Wilson, 785 P.2d 845 (Wash. App. 1990).

In this case the vendee did not make payment between 1963 and 1986. In 1986 the vendor instituted nonjudicial forfeiture proceedings. The vendee reinstated when the vendor gave a Notice of Intent to Forfeit. The vendor rejected the reinstatement and sued to quiet title.

The court of appeals ruled that the Real Estate Contract Forfeiture Act is not the exclusive remedy of the vendor. Under the right circumstances a court may conclude that the contract has been "abandoned" by the vendee without the necessity of either nonjudicial or judicial forfeiture proceedings. Factors to be considered are the (1) lack of possession by the purchaser, (2) length of time the purchaser has been in default and (3) refusal of vendee to comply with the contract.

This case may be useful to us in clearing old real estate contracts when there has been no formal forfeiture. Please contact me in these situations.