Posted by Mindy_WA on 1/29/07 5:29pm
Msg #173186

LONG...but need advice....

Friday: I signed a loan pkg with "Mrs. Jane Doe". "Mr. John Doe" was present at the signing but was not listed on the DOT. He stated that he had signed a Quit Claim deed when they bought the property...OK, that explains that!

Monday: I get a call from the SS who says: "There is a note on the instructions to you that Mr. John Doe must sign the DOT only" (Said note is on the 2nd pg of the instructions in 8 pt. font) This is a last minute signing on Friday night at 8pm. I apologize that I did not see that note, but why is he signing DOT anyway if he signed a quit claim at purchase?

SS proceeds to tell me that this is a quirky Washington state law, when the spouse signs a quit claim, they must still sign the DOT. Hmmm. I have never heard of that, but I'll be happy to go out and sign the DOT with the husband (???) current date, of course.

SS proceeds to say, the date must be Friday's date. I said, No can do...this is my full time job. Not willing to loose my commission over whether the LO gets his commission or not. He says, well it's your mistake, you need to fix it.

I said, "I'll be happy to accomodate your backdating request if you would please provide me with your request, on company letterhead. I will submit it to the SOS and let you know if they will let me do it."

Huffily, SS says, "I will call you back!"

Meanwhile, I call the local Title Company to see if I have a misunderstanding of my job. Title Officer says...not a title requirement. I called 3 local real estate attys, they say NOT a quirky WA law. AND further, if his name was not listed, I would be wrong to put it in, instruction or no instruction. I feel better.

Finally, I hear back from the SS. He says, "You are right, there is no law, but lender wants the signature anyway. You can date it for current date. Attach another certificate with current date."

Can anyone think of a reason the quit claimed spouse should/should not sign? I will not be giving bwrs any advice on this, just want opinions/consensus.

Reply by Simple Solutions Notary Service - JoAnn Baracosa on 1/29/07 5:34pm
Msg #173187

Great Job!!!Thanks For posting it

Reply by Diana Perez on 1/29/07 5:47pm
Msg #173190

No advice needed. You got an A+

Reply by Mindy_WA on 1/29/07 5:50pm
Msg #173191

Re: Please see the last sentence...

Wondering if there is a reason the borrowers may not want the non-ob spouse to sign. Could this make trouble in the future for the borrowers/me?

Reply by PL on 1/29/07 5:58pm
Msg #173192

It may have nothing to do with state law, but with title ins

Here's what I have found:

What is homestead property and how does it work?
Washington state law:
RCW 6.13.060: Conveyance or encumbrance by husband and wife.

The homestead of a married person cannot be conveyed or encumbered unless the instrument by which it is conveyed or encumbered is executed and acknowledged by both husband and wife. However, a husband or wife may make and execute powers of attorney for the conveyance or encumbrance of the homestead.

Key Words

Conveyance: Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged or assigned.
Encumbrance: A claim, lien, charge or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title.
Instrument: Any writing having legal form and significance, such as a deed, mortgage, will, lease, etc.
Power of Attorney: An authority by which one person (principal) enables another (attorney in fact) to act for him.
Homestead: The dwelling (house and contiguous land) of the head of a family.
Title Insurance Requirements
Same as state law.

There is no lien on community or homestead property unless both spouses join in the instrument. Therefore, it is not possible for the lender to foreclose against the homestead or community property unless both spouses have signed the deed of trust. Title insurance does not require the spouse to execute the note or guarantee payment of the obligation.
Property inherited, acquired thru divorce or as a single individual is the separate estate of the individual. Community property may be converted by deed to separate property.
The vesting and grantor clause on the deed of trust may remain as "John Doe as his separate estate." However, if it is homestead property, both husband and wife must execute the deed of trust.
Lender Requirements
Lenders may have different requirements.

Lenders may require the property to be vested in both parties as a marital community to make the loan.
Lenders may have a form of "spousal consent" wherein the spouse joins in the execution of the deed of trust but signs a "spousal consent form" waiving all homestead or spousal rights in the property.
Lenders may recite on the face of the deed of trust a statement such as "I John Doe am executing this deed of trust for the purpose of subjecting the property herein described to the lien of this instrument. I acknowledge that the property is the separate property of Jane Doe. I hereby release, waive and subject to the lien of this instrument all rights in the property, if any, I have, by virtue of the homestead laws or any other laws of this state. I am undertaking no personal liability for payment of any indebtedness secured by or arising from this instrument." Lender requirements may be that the spouse does not have to acknowledge the deed of trust. However, Washington state law and title insurance both require husband and wife to acknowledge the deed of trust if it is a homestead property.

Reply by Mindy_WA on 1/29/07 6:10pm
Msg #173195

Re: Thank you PL....

This is exactly what I was looking for. Funny the local real estate atty's don't know of this. I even tried to google the answer, but could not find anything!
Mindy

Reply by Mindy_WA on 1/29/07 8:03pm
Msg #173209

Re: RCW 6.13.060 is not about....

Encumbrance or Conveyance, but about power of atty. PL, where did you find this info? Can you add a link?
Mindy

Reply by Laura Vestanen on 1/29/07 6:40pm
Msg #173197

WA rules - check your NotRot private messages. n/m

Reply by Mindy_WA on 1/29/07 7:52pm
Msg #173207

Re:Laura...check yours! :) n/m