Washington

Washington at a Glance

1. Mechanics' Lien Rules

Plain English

Washington lien claimants record a notice of claim of lien within 90 days after they stop furnishing labor, materials, or services, then sue within 8 months after recording (and serve the owner within 90 days of filing). Suppliers and others who didn't contract with the owner must give a notice of right to claim a lien; it protects only work furnished from 60 days before the notice (10 days before, for a new single-family home). Priority is claimant by claimant: each lien relates back to that claimant's own first work on the job, not the project's start. A lien can be released with a bond (2x for small liens, 1.5x above $10,000), or attacked in a fast frivolous-lien proceeding, though courts don't call a lien frivolous when the issue is debatable (Feekes, 2026).

Key Rules

Notice of right to claim a lien (RCW 60.04.031). Required of most claimants not in direct contract with the owner. Protects only work supplied after the date 60 days before the notice (10 days for new construction of a single-family residence). Exceptions include persons contracting directly with the owner and certain laborers.

Recording (RCW 60.04.091). Record a notice of claim of lien not later than 90 days after the claimant ceased to furnish labor, services, materials, or equipment.

Suit (RCW 60.04.141). The lien expires 8 calendar months after recording unless suit is filed in the county superior court and the owner is served within 90 days of filing.

Priority (RCW 60.04.061). The lien is prior to any encumbrance that attached after, or was unrecorded at, the commencement of that claimant's labor, services, or first delivery.

Bond (RCW 60.04.161). For a lien of $10,000 or less, the greater of $5,000 or twice the lien; for more than $10,000, at least 1.5 times the lien.

Frivolous liens (RCW 60.04.081). Summary show-cause hearing; a frivolous or clearly excessive lien can be released, with fees.

Filed case notes

• Feekes v. Triple M Construction (Wash. Ct. App. 2026): a lien is not frivolous merely because the statutory Notice to Customer was missing where it is debatable whether notice was required.

Practice Points

1. Each claimant has its own priority date. A subcontractor who started before your deed of trust recorded can come first, even if the GC started later.
2. Bond rather than litigate a disputed lien. The frivolous-lien route is narrow (Feekes).
3. Get lien waivers and an owner's affidavit, and check for notices of right to claim a lien given to the owner.

Citations

• RCW 60.04.031 (notice of right to claim a lien): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.031
• RCW 60.04.061 (priority): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.061
• RCW 60.04.081 (frivolous lien proceeding): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.081
• RCW 60.04.091 (90-day recording): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.091
• RCW 60.04.141 (8-month suit deadline): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.141
• RCW 60.04.161 (bond in lieu of claim): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.161

2. Execution and Notarization Requirements for Recording

Plain English

Washington deeds are acknowledged and recorded with the county auditor or recorder. The recording act is race-notice: an unrecorded conveyance is void against a later good-faith purchaser or mortgagee for value whose conveyance is recorded first, and a document counts as recorded the minute it is filed. Washington allows remote notarization by commissioned electronic records notaries. Sellers pay the state real estate excise tax (REET), which is graduated by price band, plus a local REET where the city or county imposes one. Washington closings are handled by escrow agents and, for document preparation, limited practice officers (LPOs).

Key Rules

• Recording act (RCW 65.08.070). Race-notice. Recording officers may accept tangible copies of electronic records with a notarial certificate.
• Remote notarization (RCW 42.45.280). An electronic records notary may notarize for a remotely located individual using communication technology. (A revised version of the section takes effect Jan. 1, 2027.)
• State REET (RCW 82.45.060). 1.1% up to the first threshold, 1.28%, 2.75%, and 3% above the top threshold. Thresholds are adjusted every 4 years (statute base: $500,000 / $1.5 million / $3 million). For 2023 through 2026 the thresholds are $525,000 / $1,525,000 / $3,025,000; for sales on or after Jan. 1, 2027 they rise to $551,000 / $1,551,000 / $3,051,000 (Department of Revenue). Timberland and agricultural land pay 1.28% flat.
• Local REET (RCW ch. 82.46). Most locations add 0.25% or 0.5%; San Juan County adds 2%, and a few towns add none (Department of Revenue local rate table, effective May 1, 2026). Check the rate for the location code.
• Limited practice officers (Wash. APR 12(d)). LPOs may select, prepare, and complete documents in forms approved by the LP Board for closing a loan, sale, or other transfer (for example deeds, notes, deeds of trust, reconveyances).

Practice Points

1. Compute REET by band using the current thresholds, then add local REET.
2. Remote and out-of-state notarizations: confirm the notary's commission and certificate.
3. Remote title and escrow work is taxed where the property is (see Chicago Title v. Department of Revenue in section 5).

Citations

• RCW 65.08.070 (recording; race-notice): https://app.leg.wa.gov/RCW/default.aspx?cite=65.08.070
• RCW 42.45.280 (electronic records notary; remote): https://app.leg.wa.gov/RCW/default.aspx?cite=42.45.280
• RCW 82.45.060 (state REET rates): https://app.leg.wa.gov/RCW/default.aspx?cite=82.45.060
• Wash. APR 12 (limited practice officers): https://www.courts.wa.gov/court_rules/pdf/APR/GA_APR_12_00_00.pdf

3. Securing Future Advances

Plain English

Washington gives mortgages and deeds of trust broad statutory priority. Under the lien chapter, a mortgage or deed of trust is prior to every lien and encumbrance not recorded before it, for all sums it secures, regardless of when they are disbursed or whether the disbursements are obligatory. That rule is subject to the mechanics' lien relation-back rule (section 1) and a separate rule in § 221. The 2026 Marquez Vargas decision adds a foreclosure wrinkle: a HELOC is not a negotiable instrument, so it can't be foreclosed nonjudicially under the Deed of Trust Act. Expect judicial foreclosure for HELOC deeds of trust.

Key Rules

• Priority of financial encumbrances (RCW 60.04.226). Prior to later-recorded encumbrances for all sums secured, regardless of when disbursed or whether obligatory, except as provided in RCW 60.04.061 or 60.04.221.
• Construction lender duties (RCW 60.04.221). If there is no payment bond of at least 50% of the construction financing, an unpaid potential lien claimant may give the lender notice within 35 days after payment was due. The lender must then withhold the amount claimed from later draws (or get a payment bond). If it doesn't, its mortgage or deed of trust is subordinated to that lien to the extent of funds wrongfully disbursed, capped at the amount in the notice plus costs and fees.
• HELOC foreclosure (Marquez Vargas, 2026). Judicial foreclosure required.

Filed case notes

• Marquez Vargas v. RRA CP Opportunity Trust 1 (Wash. 2026): HELOCs are not negotiable instruments and cannot be foreclosed nonjudicially under the Deed of Trust Act.

Practice Points

1. Insuring a trustee's sale on a HELOC deed of trust? Expect a judicial foreclosure requirement after Marquez Vargas.
2. Construction loans: if a § 221 notice was received, confirm the lender withheld the claimed amount from later draws.
3. HELOC payoffs: get a signed freeze and close request with the payoff.

Citations

• RCW 60.04.226 (financial encumbrances; priorities): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.226
• RCW 60.04.221 (construction lender notice and withholding): https://app.leg.wa.gov/RCW/default.aspx?cite=60.04.221
• Marquez Vargas v. RRA CP Opportunity Trust 1 (Wash. 2026): https://www.courts.wa.gov/opinions/pdf/1037350.pdf

4. Subdivision Statutes and Regulations

Plain English

Washington's subdivision law (RCW 58.17) has two tracks. A short subdivision is a division into 4 or fewer lots (a city, or a county within an urban growth area, can raise this to 9). A subdivision is a division into 5 or more lots. Both need local approval and a recorded plat or short plat. Commercial and industrial land can use a binding site plan. Selling land divided illegally has real consequences: no building or septic permits (except for innocent purchasers without notice), and the buyer may recover damages or rescind the sale and recover fees.

Key Rules

• Definitions (RCW 58.17.020). Subdivision: 5 or more lots for sale, lease, or transfer. Short subdivision: 4 or fewer (up to 9 by local option). Binding site plans are also defined.
• Exemptions (RCW 58.17.040). Exempt divisions include cemetery plots, large-lot divisions (1/128 of a section or 5 acres or larger, unless local ordinance requires platting), divisions by will or descent, commercial or industrial divisions under an approved binding site plan, and boundary line adjustments.
• Injunction (RCW 58.17.200). Sales of lots in a 5+ lot division without a recorded final plat may be enjoined by the prosecuting attorney.
• Permits and buyer remedies (RCW 58.17.210). No development permits for illegally divided land (except for innocent purchasers for value without actual notice); the buyer may recover damages or rescind and recover costs and attorney fees.

Practice Points

1. New lot? Get the recorded plat, short plat, or binding site plan, or confirm an exemption.
2. Check plat notes for restrictions, easements, and conditions.
3. Fences and old boundary lines can ripen into adverse possession (Sydow v. Douglass Properties, Wash. Ct. App. 2026), and an implied easement first recognized by a court after the policy date may fall within the policy exclusions (Bel-Red Partners v. First American, W.D. Wash. 2026, a federal trial-court ruling).

Citations

• RCW 58.17.020 (definitions): https://app.leg.wa.gov/RCW/default.aspx?cite=58.17.020
• RCW 58.17.040 (exemptions): https://app.leg.wa.gov/RCW/default.aspx?cite=58.17.040
• RCW 58.17.200 (injunction): https://app.leg.wa.gov/RCW/default.aspx?cite=58.17.200
• RCW 58.17.210 (permits; damages; rescission): https://app.leg.wa.gov/RCW/default.aspx?cite=58.17.210

5. Title Premium Rates

Plain English

Washington title insurers must file their rates, rate schedules, rules, and forms with the Insurance Commissioner before using them, with a proposed effective date at least 30 days after the filing is received. Rates must not be excessive, inadequate, or unfairly discriminatory, and rate data can't include escrow income or expenses. Escrow is separately regulated (escrow agents are licensed, and title companies' escrow rates are set apart from title premiums). Washington also has detailed inducement rules for title companies (RCW 48.29.210; WAC 284-29-200 and following).

Key Rules

• Standard (RCW 48.29.143). Rates must not be excessive, inadequate, or unfairly discriminatory; an actuarially sound estimate of future costs meets the standard.
• Filing (RCW 48.29.147). File before use (or through a rating organization), with supporting data; escrow income and expenses excluded; effective no earlier than 30 days after receipt.
• Inducements (RCW 48.29.210; WAC 284-29-200 to 284-29-265). Limits on giving anything of value to people who refer title business. (The older WAC 284-30-800 rules were repealed in 2009.)
• Escrow agents (RCW 18.44.021). Licensed by the Department of Financial Institutions; banks, insurance companies, and lawyers acting in their practice are among the exemptions.

Filed case notes

• Related: Chicago Title v. Department of Revenue (Wash. Ct. App. 2026): sales/B&O tax on remote title and escrow services is sourced to the property location (tax, not rate filing).

Practice Points

1. Quote from the insurer's filed Washington rates for the county.
2. Keep escrow and title charges separate.
3. No inducements outside what the rules allow.

Citations

• RCW 48.29.143 (rate standard): https://app.leg.wa.gov/RCW/default.aspx?cite=48.29.143
• RCW 48.29.147 (required filings; 30 days): https://app.leg.wa.gov/RCW/default.aspx?cite=48.29.147
• RCW 48.29.210 (inducements): https://app.leg.wa.gov/RCW/default.aspx?cite=48.29.210
• RCW 18.44.021 (escrow agent license): https://app.leg.wa.gov/RCW/default.aspx?cite=18.44.021

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Washington's real estate excise tax (REET) is paid by the seller and climbs with price: 1.1%, 1.28%, 2.75% and 3% on the slices of the price, plus a local REET (usually 0.25% or 0.5%; 2% in San Juan County). Selling a controlling interest in an entity that owns Washington property is taxed too. Washington has no mortgage tax, but recording fees are high.

Key Rules

(a) Deed transfer, conveyance or excise tax

• State REET (RCW 82.45.060): 1.1% on the portion up to $525,000; 1.28% to $1,525,000; 2.75% to $3,025,000; 3% above. Thresholds are indexed every 4 years; for sales on or after Jan. 1, 2027 they become $551,000 / $1,551,000 / $3,051,000. Agricultural and timberland is a flat 1.28%.
• Local REET (RCW ch. 82.46): usually 0.25% or 0.5% depending on location; San Juan County is 2% and a few towns have none (Department of Revenue rate table, May 1, 2026).
• Who pays. The tax is the seller's obligation (RCW 82.45.080); if unpaid, it can become a lien on the property.
• Controlling interests. Transfer or acquisition of 50% or more of an entity owning Washington real property within 36 months is taxed (RCW 82.45.010, 82.45.033).

(b) Mortgage, indebtedness or intangible tax

• None. Washington has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees).

(c) Other recording taxes and fees

• Recording fees include large state surcharges. King County, for example, charges $303.50 for the first page of most documents and $304.50 for a deed of trust, plus $1 per additional page. Check the county's current schedule.

Practice Points

1. Worked example (state REET, $1,000,000, 2026 thresholds): $5,775 + $6,080 = $11,855, plus local REET.
2. Entity deals: count interest transfers over 36 months.

Citations

• RCW 82.45.010, 82.45.033, 82.45.060, 82.45.080 (REET): https://app.leg.wa.gov/RCW/default.aspx?cite=82.45
• RCW 82.46 (local REET): https://app.leg.wa.gov/RCW/default.aspx?cite=82.46
• King County recording fees: https://kingcounty.gov/en/dept/executive-services/certificates-permits-licenses/records-licensing/recorders-office/document-recording
• WA DOR, Real estate excise tax: https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax