Washington title litigation toolbox "must-haves" – title report and a lis pendens

In Washington, real property title disputes are generally adjudicated in the county superior court where the property is located.  As explained in prior posts, it is the court, not the assessor or recorder or some other state / county agency, that is empowered to declare title rights.  And the court only does so when presented with a justiciable dispute.

A title judgment from the court is only effective against parties that were properly joined to the suit.  Parties with potential claims or rights to the property, and whose rights are publicly disclosed or reasonably discoverable, are generally unaffected by a case in which they were not joined.  For this reason, and to ensure that the ultimate title judgment is enforceable against all potential claimants, the title litigation toolbox should contain two essential tools – a title report and a lis pendens.

A title report is an abstract of title that is purchased from a professional title company.  The report will generally disclose all publicly recorded interests and claims against the property.  In generating the title report, the title company will review the real estate records maintained by the county recorder and may also review tax rolls, judgment execution dockets and bankruptcy records.  The title company will guarantee the accuracy of the report up to a policy limit.  Why is the title report so important?  Because it discloses all potential interests that need to be joined to the suit to secure a quiet title judgment.

A title report captures the state of a title at a specific moment in time.  Real property interests, however, are fluid.  Subsequent interests can be created, immediately.  Thus, a title report can become stale, quickly. This is the problem addressed by the lis pendens.

The lis pendens is authorized and governed by state statute.  RCW 4.28.320.  It is merely a notice that gets recorded with the county recorder notifying the public of the pending lawsuit affecting the property.  The legal import, however, is significant.  Under the statute, all parties subsequently acquiring interests in the property are bound to the court’s judgment from the case because the lis pendens imparts constructive knowledge of the suit. RCW 4.28.320. 

The title report and lis pendens combination, thus, allows the party seeking title relief to join all necessary parties with existing potential interests and parties that may acquire subsequent interests.  It does not matter what type of interests are being adjudicated or enforced – ownership, easement, lien, covenant, etc – the title report and lis pendens are a "must have" for the toolbox.