Types of Proof Required for Adverse Possession

Washington Courts recognize a number of doctrines which allow property owners to quiet title to property and establish new boundary lines, even in the face of a conflicting survey.  The most well-known doctrine is adverse possession.  Several others include estoppel in pais, parol agreement, and mutual recognition and acquiescence (“mutual acquiescence”).  These doctrines contain their own unique characteristics.  However, several contain overlapping elements which require similar kinds of proof. 

For instance, both adverse possession and mutual acquiescence generally require a showing of certain use of the claimed property for a period of ten years.  In short, an attorney’s analysis of one doctrine likely applies to another and the same types of evidence may be gathered to support the related doctrines.  Nonetheless, it is important to disassociate the doctrines and separately address each doctrine’s distinct attributes from inception of the lawsuit.  Failure to do so may prevent use of the most pertinent doctrine at the summary judgment or trial stage.  For instance, in a recent case, plaintiffs prevailed on the theory of mutual acquiescence even where they had only pled claims of adverse possession. Green v. Hooper, 149 Wn. App. 627, 205 P.3d 134 (2009). 

The plaintiffs, having failed on their adverse possession claims, finally raised their mutual acquiescence theory on the third and final day of the trial.  The trial court, over strenuous objection by the defendants, reasoned that the plaintiffs’ claim of adverse possession was sufficient to put the defendants on notice of the doctrine of mutual acquiescence – given the similar elements of the doctrines and congruous burdens of evidentiary proof.  The trial court’s rational was tentatively supported by decisions coming out of Division Two of Washington’s Court of Appeals.  That Court has, on previous occasions, stated mutual acquiescence “supplements” the doctrine of adverse possession.  See e.g. Lilly v. Lynch, 88 Wn. App. 306, 316, 945 P.2d 727 (1997).  The defendants appealed the trial court’s ruling, arguing mutual acquiescence must be separately pled from adverse possession.  Division Three of the Court of Appeals agreed.  “The doctrine of mutual recognition and acquiescence does not ‘supplement’ adverse possession in the sense that it is contained within a pleaded cause of adverse possession and it is not sufficient, without expressly being pleaded, to give fair notice to a defending litigant where judgment is being sought solely on the theory of adverse possession.” Green, 149 Wn. App. at 640.  In so holding, the Green court gave fair-warning to litigants proceeding on alternative, but often interrelated, doctrines commonly used by Washington Courts to settle boundary disputes.  Ultimately, plead each doctrine separately to ensure preservation of the most appropriate doctrine for trial.

 

Important things to keep in mind when facing foreclosure

In a recent case, the issue arose as to what options a party has when their home has already been foreclosed upon, and sold in a trustee's sale.  Washington's Deed of Trust Act provides direction for this issue in RCW 61.24.130.  

As interpreted in In re Marriage of Kaseburg,126 Wash.App. 546, 108 P.3d 1278 (2005), a party waives the right to post-foreclosure-sale remedies under the Deed of Trust Act where the party:

  1. received notice of the right to enjoin the sale; 
  2. had actual or constructive knowledge of a defense to foreclosure prior to the sale; AND
  3. failed to bring an action to obtain a court order enjoining the sale

This Act provides a the only manner in which ANY party may prevent or restrain a trustee's sale on any proper ground, once the foreclosure has begun with a "receipt of the notice of sale and foreclosure."  Id. at 236.

It would seem that the safeguards required before a trustee's sale can go through, influenced what that legislature allows in post-foreclosure-sale remedies.  In other words, even if there is a valid reason to undue a trustee's sale, you must take those steps prior to the sale.  IF, of course, you did not receive proper notice and were not aware of the sale, you are NOT barred from bringing an action to stop the sale.

To be safe, if one is facing a foreclosure and his/her home has a scheduled trustee's sale date, the best thing is to hire an attorney to initiate the legal process.  At a minimum, therefore, the home owner is not guilty of waiving his or her rights to post-foreclosure-sale remedies and can forestall the process before it is too late.  

 

Loan modification options for property investors (non owner-occupied properties)

The Obama legislation, which passed in March, aimed specifically to assist those in danger of losing their primary residence to foreclosure.  It was thought that individuals purchasing property for investment (namely those acquiring property then leasing it out) would not be eligible under the new law.

While that has not changed, our office has seen some interesting movement by banks and loan servicers regarding investment properties.  Under many circumstances, even the investor may gain some relief through loan modification.  

Banks/servicers largely follow the same pattern as the owner-occupied loan modifications.  First, they require a signed forbearance agreement, then they require an extensive disclosure of the investor's financial status in the form of a "Hardship Packet".  When they have those two things in hand, the servicer/bank will decide whether to modify the loan.  The following is what is most often required:

1.  Letter describing hardship

2.  Last two pay stubs

3.  Length of time at current employer

4.  One month's complete bank statement

5.  Most recent tax return

6.  Statement of your complete income (including family members residing with you)

7.  Proof of paid property taxes, homeowners insurance, and HOA fees

8.  (If self-employed): (a)  Profit/loss statements; (b)  three pay stubs; (c)  last two years tax returns; and (d)  business and personal bank statements.