Susan and her husband Tom purchased a home in Olympia, Washington during their marriage using community funds. Tom later wants to refinance the property using only his name on the new deed of trust. Under Washington community property law, what must occur for the refinance to be valid?
Correct Answer
B) Both Susan and Tom must sign the deed of trust to encumber community property
Washington is a community property state, and property acquired during marriage with community funds is owned equally by both spouses. Under Washington community property law, both spouses must sign any instrument that encumbers (places a lien on) community real property, including a deed of trust. Tom cannot unilaterally encumber the community property without Susan's signature.
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