SENATE BILL REPORT

SB 5224

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Financial Institutions, Housing & Insurance, February 2, 2011

Title: An act relating to preparation charges for condominium resale certificates.

Brief Description: Increasing the charge limit for the preparation of condominium resale certificates.

Sponsors: Senators Hobbs and Fraser.

Brief History:

Committee Activity: Financial Institutions, Housing & Insurance: 1/25/11, 2/02/11 [DP].

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, HOUSING & INSURANCE

Majority Report: Do pass.

Signed by Senators Hobbs, Chair; Prentice, Vice Chair; Haugen and Keiser.

Staff: Alison Mendiola (786-7483)

Background: When selling a condominium unit, the unit owner is to provide the purchaser with a resale certificate prior to entering into any contract for the sale or conveyance of the unit. A resale certificate is not required if (1) delivery of a public offering statement is required, or (2) the unit owner is otherwise exempt from providing a resale certificate, such as when the unit is sold under foreclosure.

A resale certificate is signed by an officer or authorized agent of the condominium association and the certificate is based on the books and records of the association, including:

When a unit owner requests a resale certificate and provides any fee as may be required, the association is to provide the certificate within ten days of the request. A reasonable charge for a resale certificate may not exceed $150.

Summary of Bill: A reasonable charge for a resale certificate may not exceed $275.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: Preparing a resale certificate can be very time consuming, as there are many statutory requirements. This statute was put into place in 1990 so the $150 cap on the fee has been in place for over 20 years, and while additional requirements have been added, the fee cap has not increased. The fee is for services performed.

Persons Testifying: PRO: Kathryn Hedrick, Washington State Community Associations Institute (WSCAI); Julianne Rossiter, WSCAI, Trestle Community Management.