James and Olivia are married and own their Redmond home as community property with right of survivorship. They decide to refinance their mortgage. The lender requires both spouses to sign the deed of trust. James argues that since he manages all the finances, only his signature should be required. Which of the following best explains why the lender's requirement is correct under Washington law?

Correct Answer

B) Both spouses must sign any instrument that encumbers community real property, including a deed of trust, under RCW 26.16.030

RCW 26.16.030 requires both spouses to join in any instrument that conveys or encumbers community real property. A deed of trust is a security instrument that encumbers the property, so both James and Olivia must sign it. This requirement is a matter of Washington statutory law, not merely lender policy, and applies regardless of which spouse manages the household finances.