Bulletin: WA000032

Date:
January 06, 1992
To:
All Washington Agents
RE:
Contract Purchaser - Bona Fide Purchaser

Dear Associates:

The Washington Court of Appeals has applied the 1984 amendment to the Recording Act which protects real estate contracts retroactively. Tomlinson v. Clarke, 803 P.2d 828 (Wash. App. 1991).

Prior to 1984, purchasers of real estate contracts could not claim bona fide purchaser status in Washington even though their contracts were recorded. A recorded contract purchaser took his or her interest subject to unrecorded deeds, mortgages, etc. The legislature changed this rule in 1984 to enable contract purchasers to claim BFP protection.

In the Tomlinson case the court was asked to decide whether this amendment applied to a real estate contract recorded in 1980. The court of appeals ruled that it did. The 1984 amendment applies to all recorded contracts.

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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
3.48 Contract Purchasers
 
3.52 Contracts For Sale
Exceptions Manual:
WA Contracts for Sale
Forms:
None