Archive For: Business & Real Estate Law

Condominium And Homeowners Associations In Washington State

Posted: May 21, 2019

By: Washington State Business Law and Litigation Lawyer Babak Shamsi

In Washington State, residential communities made up of single-family homes, townhouses, or apartment units frequently arrange themselves into associations to address the common interests and liabilities of the property owners.  These community associations often take the form of condominium associations (“CAs”) or homeowners associations (“HOAs”).  While the two are often named interchangeably, the differences between condominiums and other communities are significant.  It is thus crucial to understand not only the differences between them, but the distinctions between various condominiums as well.

A principal difference in Washington State between community organizations comes from the statutes that govern...Read More

Adverse Possession In Washington State

Posted: May 14, 2019

By: Washington State Business & Real Estate Lawyer William O. Kessler

What is Adverse Possession?

Adverse possession is a legal doctrine under which a person can establish real estate ownership through consistent use (i.e. possession) of someone else’s property.  To establish a claim of adverse possession, the claimant must prove that the claimant’s possession is:

(1) exclusive, meaning no other person has possessed the property for the extent the claim has existed;

(2) actual and uninterrupted, meaning there is no break in ownership of the specific property for the extent the claim has existed;

(3) open and notorious, meaning that possession is obvious; and

(4) “hostile,” not...Read More

Construction Liens In Washington State

Posted: Apr 22, 2019

By: Washington State Business Law and Litigation Lawyer Babak Shamsi

In Washington, disputes in construction projects often involve complex issues between numerous parties.  Parties to a construction project may include prime contractors, subcontractors, suppliers, and laborers, all of whom work with the expectation of compensation for their services.  When these parties are not paid for their work they may file and attempt to enforce liens to ensure their rightful payment.  RCW 60.04 governs the filing and enforcement of mechanics’ and materialmen’s liens, which are a crucial tool for collection efforts pertaining to unpaid construction work.  However, legal representation is often necessary to navigate through the...Read More

Annual Reports, Registered Agents And “Governors”

Posted: Mar 27, 2019

By: Washington State Business and Real Estate Lawyer David C. Tingstad

What is an annual report?

An annual report is the yearly document your LLC submits to the Washington Secretary of State.  The annual report notifies the Secretary of State about relevant information pertaining to your LLC like the name, principal office location, registered agent, and nature of the LLC’s business.  The Secretary of State requires each LLC to file an annual report every year. Any LLC that does not file an annual report will be administratively dissolved by the Secretary of State.

To file your annual report in the State of Washington you must adequately and...Read More

Selling A Business In Washington State

Posted: Mar 26, 2019

By: Washington State Business & Real Estate Lawyer William O. Kessler

For closely-held business owners, the idea of selling your business appears daunting. Where do you start? What do you need to know before beginning the process?

Several months ago, we published an article discussing the general process of buying and selling a business. This is a further discussion and includes other issues. There are many details to address throughout the sale process, and discovering these details proves difficult without the assistance of experienced legal counsel. At Beresford Booth, we provide this experienced counsel which the closely-held business owner...Read More

Collections And Limited Liability Companies

Posted: Mar 14, 2019

By: Washington State Business Law Lawyer Babak Shamsi

When a creditor obtains a judgment against a debtor, there are numerous possible avenues for enforcement.  Typical collection efforts may include wage garnishment, bank garnishment, and personal property execution.  Collection strategies depend greatly upon the financial circumstances of the debtor.  One nuanced area of enforcement involves collection efforts against a debtor who is a member of a limited liability company (“LLC”).

Some debtors will form LLCs to shield their financial assets and income from collection.  However, an LLC does not provide absolute protection.  Under RCW 25.15.256, courts may in certain circumstances issue a charging order that...Read More

Equitable Indemnity In Washington State

Posted: Mar 6, 2019

By: Washington State Business & Real Estate Lawyer William O. Kessler

What is Equitable Indemnity?

Sometimes a party’s wrongful act or omission causes the wronged party to enter litigation with an unrelated third party. The common law theory of equitable indemnity says that the separate third party may be entitled to compensation from the initial wrongdoer as an element of damages. In Washington, this rule is also known as the “ABC Rule”: When A wrongs B, causing B to litigate with C, B may be entitled to a judgment for money damages and attorney fees from A.

How is it applied?

For example, Barry buys a house...Read More

Dissolution Of An LLC In Washington State – What Happens?

Posted: Feb 28, 2019

By: Washington State Business Law Lawyer David C. Tingstad

All limited liability companies embark upon journeys of varying length, activity, and consequence. Eventually, LLCs reach their journeys end and require dissolution. The process of dissolution and the time dissolution requires is different for every LLC, but what really happens with an LLC upon dissolution?


LLCs dissolve for a multitude of reasons. For example, the LLC agreement may provide for an event or date of dissolution, the members may consent to dissolution, the LLC can dissolve administratively (via the Secretary of State) or judicially (via a court decision). However, dissolution does not end the...Read More

Partitions In Washington State

Posted: Feb 26, 2019

By: Washington State Business and Real Estate Law Lawyer Babak Shamsi

Property Ownership

In Washington, there are multiple ways in which individuals can agree to co-own real property. The most common form of ownership between unmarried parties is as tenants in common.  Tenants in common have great flexibility in how they can divide ownership interests. For example, two owners can own a property evenly, or they can choose to split their ownership interests in another manner, such as by giving one owner a 75% interest and the other owner a 25% interest. Additionally, tenants in common can pass on ownership through their wills. Most owners agree to...Read More

Easements In Washington State May Terminate For Frustration Of Purpose

Posted: Feb 5, 2019

By: Washington State Business & Real Estate Lawyer William O. Kessler

Property boundary lines are often not as simple as square boxes aligned neatly next to one another. An easement is a prime example of the complexities associated with boundary lines. Easements are a right to use (not own outright) or restrict the use of someone else’s land, and issues regarding easements tend to get tricky.

For example, Bob owned a piece of land with an easement through the property. The easement was used for a long driveway leading to neighboring parcels, and the owners of those neighboring parcels were permitted to access the road for ingress to...Read More