Yearly Archives: 2014

12 posts

Commercial Lease Co-Signer Not Liable

A landlord and tenant entered into a commercial lease. The landlord required an additional signer as security. The lease expired. The tenants were current on the rent at the time the lease expired. The tenants stayed in possession and began a month-to-month tenancy. The tenants soon fell behind on rent, a moved out after several months, owing $8,709.12 in unpaid rent. The landlord assigned its right to the delinquent rent to a collections agent, who in turn sued the co-signer. In a bench trial, the trial court ruled in favor of the co-signer. The collections agent appealed. The Washington State […]

New Law Clarifies Process for Tenants who Avoid Service

To start an eviction lawsuit in Washington (a.k.a. an unlawful detainer action) the landlord must first serve applicable notices such as a notice to pay rent or vacate, comply or vacate, or a notice to terminate a month to month tenancy. Next, the landlord must serve a summons and a complaint. The same type of documents are the starting point in any lawsuit—although the exact content of course varies in evictions from other types of lawsuits. The same strict rules about how to serve the summons and complaint applies in evictions as in other lawsuits, essentially requiring that a disinterested […]

No Attorney Fees for Eviction after Foreclosure

The buyer of a house at a foreclosure auction is generally entitled to possession twenty days after the foreclosure sale, but with protections of tenants of the former owner under both state and federal laws.   If the occupants to not vacate, the buyer may evict via an unlawful detainer action the occupants of the foreclosed property. A recent Washington Supreme Court case clarified that attorney fees are not available in a post-foreclosure eviction action.[1] If you have purchased a foreclosed property that has occupants, and have questions about obtaining possession – contact our law firm for a free initial […]

Landlord Duties Under the Fair Credit Reporting Act

Landlords often use a consumer report to screen new tenant applicants. The Federal Fair Credit Reporting Act (FCRA) mandates that a landlord who uses a consumer report make certain disclosures when the landlord takes an action adverse to a new tenant. Consumer report. A consumer report contains information about a person’s credit characteristics, character, general reputation, and lifestyle.  Examples include credit reports and  reports from tenant-screening or reference-checking services. The FCRA applies even if the landlord relies on the consumer report only as one reason for an adverse action. The information in the consumer report does not have to be […]

Innocent Washington Tenants get Blacklisted

Ignacio and Norma had a valid lease and did nothing to warrant eviction. They renewed their lease for an additional year. One month later a new landlord bought the apartment building. The new landlord asked them to sign a new month-to-month rental agreement. The tenants refused, because the landlord was subject to the lease signed with the previous landlord. The new landlord sued Ignacio and Norma for eviction (“unlawful detainer” in legal-speak.) The parties settled. Nevertheless, because their names showed up in an eviction in court records and consequently on credit reports, they had a hard time finding a new […]

Seattle Landlord-Tenant Packet Updated

Seattle residential landlords should take note. All residential landlords in Seattle are required to give a tenant at the beginning of a tenancy a landlord-tenant information packet published by the city. The Seattle information packet until recently contained an error. The former version of the packet incorrectly informed tenants that rent increases of more than 10% require 60-days notice by the landlord. In fact, the law in Seattle requires 60-days notice of a rent increase of 10% or more, not only for rent increases of more than 10%. Seattle residential landlords should download and use the new packet. At the time […]

Which Lease Covenants Run With the Land?

Niko’s Gourmet Inc. rented commercial space from Pacific Security Financial Inc. The owners of Niko’s Gourmet Inc. personally guaranteed the lease obligations. Pacific Security Financial Inc. sold the building to Peyton Building, LLC. Pacific Security Financial Inc. and Peyton Building, LLC. did not, however, execute an assignment of the lease.

Landlords and Power of Attorney

  Corporations and LLCs when appearing in court must be represented by an attorney. “Washington law…requires individuals appearing before the court on behalf of another party to be licensed in the practice of law.” [1]  Accordingly, “corporations appearing in court proceedings must be represented by an attorney.”[2]  This is true even of single-member corporations and LLCs.[3] Likewise, someone without a law license cannot represent another person in court. There is no exception for a power of attorney, or for paralegals.[4] A person can represent themselves in court, but we do not recommend it. We frequently take calls from people whose […]

Fighting City Hall

Old City Hall LLC bought a commercial building in Tacoma with the intent to convert it into luxury condos. Old City Hall needed tenants in the building to vacate to speed up the process. Old City Hall offered to “buy out” existing commercial leases – offering the commercial tenants financial incentives to agree to terminate leases early and vacate. Most of the tenants accepted, but two tenants declined. Soon the building began to deteriorate. Janitorial services the landlord was contractually obligated to provide declined. Trash began to pile up. Human feces from unauthorized occupants littered the building.

Home Equity Skimming Dismissal Reversed by Supreme Court

A man with a learning disability and limited education lost his job in 2008, and soon fell over $10,000 behind on property taxes. The county had not yet issued a certificate of delinquency, but the homeowner felt desperate to borrow against the significant equity in his home and pay the taxes to save his house. The homeowner met a mortgage broker.  The homeowner thought the mortgage broker was arranging a loan. In reality, the homeowner deeded his house away to an investor and entered a lease with an option to buy-back.