AN ACT Relating to conveyance of residential real property; and adding a new chapter to Title 64 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds:

(1) That the conservation of energy is a resource which should be developed to the maximum extent when it is cost-effective to do so;

(2) That further development of energy conservation resources would create more jobs within this state than would the development of large facilities for the generation of electricity;

(3) That the purchaser of a single-family home should have access to information on the energy use of a home before purchase; and

(4) That an energy audit of a single-family residence before sale would provide a purchaser with energy use information and thus facilitate the development of energy conservation resources within the state.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Residential real property" means any property which is intended primarily for use as a living unit and includes single-family houses, multifamily houses, apartments, and condominiums.

(2) "Seller" means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, quasi municipal corporation, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise; but the term does not include the United States or the state of Washington. (3) "Sale" has its ordinary meaning and includes any conveyance, grant, assignment, quitclaim, or transfer of the ownership of or title to residential real property, or any estate or interest therein for a valuable consideration, and any contract for such conveyance, grant, assignment, quitclaim, or transfer, and any lease with an option to purchase residential real property, or any estate or interest therein or other contract under which possession of the property is given to the purchaser, or any other person by the purchaser's direction, which title is retained by the vendor as security for the payment of the purchase price.

The term does not include a transfer by gift, devise, or inheritance, a transfer of any leasehold interest other than of the type mentioned in this subsection, a cancellation or forfeiture of a vendee's interest in a contract for the sale of residential real property, whether or not such contract contains a forfeiture clause, or deed in lieu of foreclosure of a mortgage or the assumption by a grantee of the balance owing on an obligation which is secured by a mortgage or deed in lieu of forfeiture of the vendee's interest in a contract of sale where no consideration passes otherwise or the partition of property by tenants in common by agreement or as the result of a court decree, any transfer, conveyance, or assignment of property or interest in property from one spouse to the other in accordance with the terms of a decree of dissolution of a marriage or in fulfillment of a property settlement agreement incident thereto, the assignment or other transfer of a vendor's interest in a contract for the sale of real property, even though accompanied by a conveyance of the vendor's interest in the residential real property involved, transfers by appropriation or decree in condemnation proceedings brought by the United States, the state or any political subdivision thereof, or a municipal corporation, a mortgage or other transfer of an interest in real property merely to secure a debt, or the assignment thereof, any transfer or conveyance made pursuant to an order of sale by the court in any mortgage or lien foreclosure proceeding or upon execution of a judgment, or deed in lieu of foreclosure to satisfy a mortgage, a conveyance to the federal housing administration or veterans administration by an authorized mortgagee made pursuant to a contract of insurance or guaranty with the federal housing administration or veterans administration, nor a transfer in compliance with the terms of any lease or contract upon which the tax as imposed by this chapter has been paid or where the lease or contract was entered into prior to the date this tax was first imposed, nor a sale by or to the United States, this state or any political subdivision thereof, or a municipal corporation of this state.

The term sale also does not include a transfer to a corporation or partnership which is wholly owned by the transferor or the transferor's spouse or children.

(4) "Energy audit report" means the written report on the examination and analysis of a structure to determine the structure's current energy use and the recommended actions to reduce energy use.

NEW SECTION. Sec. 3. After January 1, 1986, any seller of residential real property shall provide to any purchaser before sale an energy audit report.

NEW SECTION. Sec. 4. A seller who does not comply with this chapter is in violation of RCW 19.86.020.

NEW SECTION. Sec. 5. The energy office shall develop rules pursuant to the administrative procedure act, chapter 34.04 RCW, to define the specific content of an energy audit report.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act shall constitute a new chapter in Title 64 RCW.