Bulletin: WA2023001

Dear Associates:

The following are summaries of some of the bills passed during the 2023 legislative session which are of interest to the title industry.  For a full reading of each bill go to https://apps.leg.wa.gov/billinfo/  and enter the bill number.

HOUSE BILL 1376 - 2022 Regular Session becomes effective July 1, 2023

REGISTERED LAND, TORRENS TITLE 

Real property subject to Registered land will be automatically withdrawn from the system on July 1, 2023. No withdrawal notice will be recorded. After this date, all records convert to the recorded records. NEW SECTION. Sec. 5. On July 1, 2023, the registrar of titles for the county shall cause the volumes of the register of titles for the county and the accompanying alphabetical indices and tract indices and other files and records in the office of the registrar of 21 titles to be closed and placed in the permanent deed records of the county. At this time, all properties remaining in registration are automatically withdrawn according to section 4(3) (b) and (c) of this act.

HOUSE BILL 1420 - Effective date July 7, 2023

AN ACT Relating to lien priority of mortgages and deeds of trust; adding a new section to chapter 61.12 RCW; and creating new sections.

NEW SECTION. Sec. 1. It is the intent of the legislature to clarify that the first in time, first in right rule of priority applies to all mortgages and deeds of trust and any future advances, thereunder without regard to whether such future advances are optional or obligatory. It is not the intent of the legislature to repeal any other statute that expressly provides for special priority over mortgages and deeds of trust.

NEW SECTION. Sec. 2. A new section is added to chapter 61.12 RCW to read as follows: Except as otherwise provided in chapter 60.04 RCW, any mortgage or deed of trust shall be prior to all liens, mortgages, deeds of trust, and other encumbrances that have not been recorded before the recording of the mortgage or deed of trust to the extent of all sums secured by the mortgage or deed of trust regardless of when the same are disbursed or whether the disbursements are obligatory.

NEW SECTION. Sec. 3. This act applies to all causes of action commenced on or after the effective date of this section, regardless of when the cause of action arose. To this extent, this act applies retroactively, but in all other respects it applies prospectively.

HOUSE BILL 1474 - Effective date January 1, 2024

AN ACT Relating to creating the covenant homeownership account and program to address the history of housing discrimination due to racially restrictive real estate covenants in Washington State;

NEW SECTION. Sec. 2. A new section is added to chapter 36.22 RCW to read as follows: (1) Beginning January 1, 2024, except as provided in subsection (2) of this section, the county auditor must collect a covenant homeownership program assessment of $100 for each document recorded, which is in addition to any other charge, surcharge, or assessment allowed by law. The county auditor may retain up to one percent of the moneys for collection of the assessment and must remit the remainder of the moneys to the state treasurer to be deposited in the covenant homeownership account created in section 4 of this act. (2) The assessment imposed in this section does not apply to: (a) Assignments or substitutions of previously recorded deeds of trust; (b) documents recording a birth, marriage, divorce, or death; (c) any recorded documents otherwise exempted from a recording fee or additional assessments under state law; (d) marriage licenses issued by the county auditor; (e) documents recording a name change order under RCW 4.24.130; or (f) documents recording a federal, state, county, city, or water-sewer district, or wage lien or satisfaction of lien.

SENATE BILL 5399 - Effective date Immediate

AN ACT Relating to future listing right purchase contracts; adding a new chapter to Title 61 RCW; creating a new section; providing an expiration date; and declaring an emergency.

NEW SECTION. Sec. 1. No future listing right purchase contract shall exceed five years duration and may not be renewed or extended. A future listing right purchase contract: (a) Shall not be used as a lien against the real property; (b) Shall not run with title to real property and is not binding or enforceable at law or in equity against any subsequent owner, purchaser, or mortgagee or holder of any interest in real property as an equitable servitude; (c) May be canceled by the owner without penalty or further obligation within 10 business days after execution of the contract by owner.

SENATE BILL 5386 - Effective date July 23, 2023

AN ACT Relating to reducing administrative complexity by increasing transparency of revenue flows for activities funded by document recording fees;

On July 1, 2023, there will be a $36 increase to MAP documents only.  This is a result of the DNR fee increasing from $64 to $100.

On July 23, 2023, the FORMAT of homeless housing fees will be changing. Government Liens and Release of Government Liens will not be $18 for the first page. Death Certificates will now be $18 for the first page. Employment Security Liens will now be $15 for the first page.

All other documents will remain at the same cost until January 1, 2024.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For online viewing of this and other bulletins, please log onto www.vuwriter.com.