Title - Frequently Asked Questions

Below are some of our most frequently asked questions in title. We've kept the answers short and sweet, but if you'd like more details or have other questions, please don't hesitate to contact our title department. Our experienced title officers can help you get a better understanding!

What is an ID Affidavit and why do title companies request them?

When we search title on a sale, we search public records on both the sellers and buyers. We look for judgments, liens, and any other complex issues that may affect the property.

We often need to have an ID Affidavit when a buyer or seller with a common name (i.e. John Smith) is involved. For example, if we run the name John Smith in King County, we would come up with around 5,000 complex issues that affect the property of parties with the name John Smith. So the information provided in the affidavit allows us to determine which items do and do not affect the subject party and or property.

Although it is sometimes time consuming for clients to fill out this affidavit, it is crucial information. It is a confidential affidavit, so rest assured that the information is private and secure.

What are mechanic's liens?

A mechanic's lien isn't for a car-repair gone bad. It applies to a lien that's been placed on a property for contractor's fees, sub-contractor’s fees, construction materials, or any other items that have been used to improve a property. When laborers and product suppliers don't get paid or dispute arises over amount paid, they can place a lien against the specific property. At that point, if the lien still has potential to be legally enforced, it must be dealt with prior to closing.

So, what to do if a property is the "liening" tower of Pisa?

1. The lien can be paid off with sale proceeds at closing.

2. If the lien is being disputed or if it impacts an entire condo building (and you're selling just one unit), a Release of Lien Bond can be purchased from a bonding company and recorded. This does not cure the lien, it simply allows for closing while the lien is being disputed.

3. If the above solutions do not apply, you can contact your title company to discuss the potential option of a “holdback” securing an indemnity agreement. Like a Release of Lien Bond, this does not cure the lien, it simply allows for closing while the lien is still being disputed.

Why do some title reports call for an inspection?

When we inspect, which is about 15-25% of all sale orders, we look for the following:

A. Evidence of recent improvements (thus, potential mechanic’s lien rights)

B. Evidence of encroachments

C. Evidence of parties in possession

D. Evidence of unrecorded easements

E. Evidence of anything else that might impair our coverage

The inspection is “triggered” if:

- Tax values jump significantly (thus potential new improvements)

- The property has not been insured in many years

- We are told there is an encroachment/potential encroachment

- There is a recorded survey disclosing potential matters listed above

- It is a sale/refi/construction loan of new construction or new subdivision

We pay for the inspection, and do not pass the cost on to the customer. If we do not inspect, and something that is covered would have been disclosed in an inspection, we are usually responsible for it. The inspection is not a survey, but a pretty accurate snapshot of the above issues. To find out definitively, the client would need a survey.

Deed Definitions

Bargain and Sale Deed: A deed by which the grantor “bargains, sells and conveys” real property to the grantee. A bargain and sale deed conveys fee simple title to the grantee and warrants against defects created by the grantor, except for those matters disclosed in the deed.

Quit Claim Deed: A deed by which the grantor “conveys and quit claims” to the grantee any interest the grantor might have, if any, in certain real property. A quit claim deed conveys no warranties of title. A quit claim deed conveys no after-acquired title, unless the deed contains words expressing the intent to do so.

Sheriff’s Deed: A deed issued by the sheriff following judicial foreclosure of a mortgage in default. The sheriff’s deed should be recorded to give notice that title has passed to the purchaser at the sheriff’s sale.

Statutory Warranty Deed: A deed by which the grantor “conveys and warrants” the real property to the grantee. A statutory warranty deed conveys fee simple title to the grantee and warrants against defects asserted by all persons, except for those matters disclosed in the deed.

Special Warranty Deed: A special warranty deed is not a Washington State statutory deed form. A special warranty deed is similar to a Washington form bargain and sale deed, which conveys fee simple title to the grantee and warrants against defects created by the grantor, except for those matters disclosed in the deed.

Tax Deed: A deed issued by the county treasurer to the purchaser at a tax sale conducted due to nonpayment of taxes. A tax deed should be recorded to give notice that title has passed to the purchaser at the sale.

Trustee’s Deed: A deed issued by the trustee of a deed of trust following the nonjudicial foreclosure of a deed of trust in default. First, the trustee or beneficiary sends a Notice of Default. Then, the trustee: 1) records a Notice of Trustee’s Sale; 2) holds the trustee’s sale; and 3) issues a trustee’s deed to the highest bidder at the sale. The trustee’s deed should be recorded to give notice that title has passed to the purchaser at the sale.