Bulletin: WA000003

Date:
May 30, 1989
To:
All Washington Agents
RE:
Redemption

Dear Associates:

The Washington Supreme Court has ruled that redemption rights by a debtor cannot be transferred by assignment; they must be transferred by deed. Fidelity Mutual Savings Bank v. Mark, 767 P.2d 1382 (1989).

A debtor attempted to transfer his statutory right of redemption by a document entitled "Assignment of Interest". The assignment purported to "grant, bargain, sell, assign, transfer unto...(property description)...includes the right to redeem..." It was neither acknowledged nor recorded.

The court held that a "valid conveyance" is necessary to transfer the right of redemption. An assignment does not work. There must be an acknowledged deed.

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:
4.16 Deeds Of Conveyance
Exceptions Manual:
None
Forms:
None