ESB 6553 -
By Committee on Judiciary
ADOPTED 03/07/2014
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 6.21.110 and 1994 c 185 s 3 are each amended to read
as follows:
(1) Upon the return of any sale of real estate, the clerk: (a)
Shall enter the cause, on which the execution or order of sale issued,
by its title, on the motion docket, and mark opposite the same: "Sale
of land for confirmation"; (b) shall mail notice of the filing of the
return of sale to all parties who have entered a written notice of
appearance in the action and who have not had an order of default
entered against them; (c) shall file proof of such mailing in the
action; (d) shall apply the proceeds of the sale returned by the
sheriff, or so much thereof as may be necessary, to satisfaction of the
judgment, including interest as provided in the judgment, and shall pay
any excess proceeds as provided in subsection (5) of this section by
direction of court order; and (e) upon confirmation of the sale, shall
deliver the original certificate of sale to the purchaser.
(2) The judgment creditor or successful purchaser at the sheriff's
sale is entitled to an order confirming the sale at any time after
twenty days have elapsed from the mailing of the notice of the filing
of the sheriff's return, on motion with notice given to all parties who
have entered a written notice of appearance in the action and who have
not had an order of default entered against them, unless the judgment
debtor, or in case of the judgment debtor's death, the representative,
or any nondefaulting party to whom notice was sent shall file
objections to confirmation with the clerk within twenty days after the
mailing of the notice of the filing of such return.
(3) If objections to confirmation are filed, the court shall
nevertheless allow the order confirming the sale, unless on the hearing
of the motion, it shall satisfactorily appear that there were
substantial irregularities in the proceedings concerning the sale, to
the probable loss or injury of the party objecting. In the latter
case, the court shall disallow the motion and direct that the property
be resold, in whole or in part, as the case may be, as upon an
execution received as of that date.
(4) Upon a resale, the bid of the purchaser at the former sale
shall be deemed to be renewed and continue in force, and no bid shall
be taken, except for a greater amount. If on resale the property sells
for a greater amount to any person other than the former purchaser, the
clerk shall first repay to the former purchaser out of the proceeds of
the resale the amount of the former purchaser's bid together with
interest as is provided in the judgment.
(5)(a) If, after ((the satisfaction)) confirmation of the sale and
the judgment is satisfied, there ((be)) are any proceeds of the sale
remaining, the clerk shall pay such proceeds, as provided for in (b) of
this subsection, to all interests in, or liens against, the property
eliminated by sale under this section in the order of priority that the
interest, lien, or claim attached to the property, as determined by the
court. Any remaining proceeds shall be paid to the judgment debtor, or
the judgment debtor's representative, as the case may be, before the
order is made upon the motion to confirm the sale only if the party
files with the clerk a waiver of all objections made or to be made to
the proceedings concerning the sale; otherwise, the excess proceeds
shall remain in the custody of the clerk until the sale of the property
has been disposed of((; but if the sale be confirmed, such excess
proceeds shall be paid to the judgment debtor or representative as a
matter of course)).
(b) Anyone seeking disbursement of surplus funds shall file a
motion requesting disbursement in the superior court for the county in
which the surplus funds are deposited. Notice of the motion shall be
served upon or mailed to all persons who had an interest in the
property at the time of sale, and any other party who has entered an
appearance in the proceeding, not less than twenty days prior to the
hearing of the motion. The clerk shall not disburse such remaining
proceeds except upon order of the superior court of such county.
(6) The purchaser shall file the original certificate of sale for
record with the recording officer in the county in which the property
is located.
Sec. 2 RCW 61.24.080 and 1998 c 295 s 10 are each amended to read
as follows:
The trustee shall apply the proceeds of the sale as follows:
(1) To the expense of sale, including a reasonable charge by the
trustee and by his or her attorney: PROVIDED, That the aggregate of
the charges by the trustee and his or her attorney, for their services
in the sale, shall not exceed the amount which would, by the superior
court of the county in which the trustee's sale occurred, have been
deemed a reasonable attorney fee, had the trust deed been foreclosed as
a mortgage in a noncontested action in that court;
(2) To the obligation secured by the deed of trust; and
(3) The surplus, if any, less the clerk's filing fee, shall be
deposited, together with written notice of the amount of the surplus,
a copy of the notice of trustee's sale, and an affidavit of mailing as
provided in this subsection, with the clerk of the superior court of
the county in which the sale took place. The trustee shall mail copies
of the notice of the surplus, the notice of trustee's sale, and the
affidavit of mailing to each party to whom the notice of trustee's sale
was sent pursuant to RCW 61.24.040(1). The clerk shall index such
funds under the name of the grantor as set out in the recorded notice.
Upon compliance with this subsection, the trustee shall be discharged
from all further responsibilities for the surplus. Interests in, or
liens or claims of liens against the property eliminated by sale under
this section shall attach to the surplus in the order of priority that
it had attached to the property, as determined by the court. A party
seeking disbursement of the surplus funds shall file a motion
requesting disbursement in the superior court for the county in which
the surplus funds are deposited. Notice of the motion shall be
personally served upon, or mailed in the manner specified in RCW
61.24.040(1)(b), to all parties to whom the trustee mailed notice of
the surplus, and any other party who has entered an appearance in the
proceeding, not less than twenty days prior to the hearing of the
motion. The clerk shall not disburse such surplus except upon order of
the superior court of such county.
Sec. 3 RCW 6.17.140 and 1988 c 231 s 11 are each amended to read
as follows:
The sheriff shall, at a time as near before or after service of the
writ on, or mailing of the writ to, the judgment debtor as is possible,
execute the writ as follows:
(1) If property has been attached, the sheriff shall indorse on the
execution, and pay to the clerk forthwith, if he or she has not already
done so, the amount of the proceeds of sales of perishable property or
debts due the defendant previously received, sufficient to satisfy the
judgment.
(2) If the judgment is not then satisfied, and property has been
attached and remains in custody, the sheriff shall sell the same, or
sufficient thereof to satisfy the judgment. When property has been
attached and it is probable that such property will not be sufficient
to satisfy the judgment, the sheriff may, on instructions from the
judgment creditor, levy on other property of the judgment debtor
without delay.
(3) If then any portion of the judgment remains unsatisfied, or if
no property has been attached or the same has been discharged, the
sheriff shall levy on the property of the judgment debtor, sufficient
to satisfy the judgment, in the manner described in RCW 6.17.160.
(4) If, after the judgment is satisfied, any property remains in
custody, the sheriff shall deliver it to the judgment debtor.
(5) Until a levy, personal property shall not be affected by the
execution.
(6) When property has been sold or debts received on execution, the
sheriff shall pay the proceeds to the clerk who issued the writ, for
satisfaction of the judgment as commanded in the writ or for ((return))
payment of any excess proceeds to all interests in, or liens against,
the property eliminated by the sale in the order of priority that the
interest, lien, or claim attached to the property, as determined by the
court. Any remaining proceeds shall be paid to the judgment debtor.
No sheriff or other officer may retain any moneys collected on
execution more than twenty days before paying the same to the clerk of
the court who issued the writ.
Sec. 4 RCW 6.17.150 and 1987 c 442 s 415 are each amended to read
as follows:
Upon receipt of proceeds from the sheriff on execution, the clerk
shall notify the party to whom the same is payable, and pay over the
amount to that party as required by law. If any proceeds remain after
satisfaction of the judgment, the clerk shall pay the excess to all
interests in, or liens against, the property eliminated by the sale in
the order of priority that the interest, lien, or claim attached to the
property, as determined by the court. Any remaining proceeds shall be
paid to the judgment debtor."
Correct the title.
EFFECT: Retains all of the underlying bill and makes the following additions: Amends two additional statutes that pertain to execution on property, providing that the junior lienholders rather than the debtor are entitled first to excess proceeds.