| Passed by the Senate March 1, 2011 YEAS 46 BRAD OWEN ________________________________________ President of the Senate Passed by the House April 1, 2011 YEAS 74 FRANK CHOPP ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5224 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
| Approved April 13, 2011, 2:17 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | April 13, 2011 Secretary of State State of Washington |
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/18/11. Referred to Committee on Financial Institutions, Housing & Insurance.
AN ACT Relating to preparation charges for condominium resale certificates; and amending RCW 64.34.425.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 64.34.425 and 2008 c 115 s 11 are each amended to read
as follows:
(1) Except in the case of a sale where delivery of a public
offering statement is required, or unless exempt under RCW
64.34.400(2), a unit owner shall furnish to a purchaser before
execution of any contract for sale of a unit, or otherwise before
conveyance, a resale certificate, signed by an officer or authorized
agent of the association and based on the books and records of the
association and the actual knowledge of the person signing the
certificate, containing:
(a) A statement disclosing any right of first refusal or other
restraint on the free alienability of the unit contained in the
declaration;
(b) A statement setting forth the amount of the monthly common
expense assessment and any unpaid common expense or special assessment
currently due and payable from the selling unit owner and a statement
of any special assessments that have been levied against the unit which
have not been paid even though not yet due;
(c) A statement, which shall be current to within forty-five days,
of any common expenses or special assessments against any unit in the
condominium that are past due over thirty days;
(d) A statement, which shall be current to within forty-five days,
of any obligation of the association which is past due over thirty
days;
(e) A statement of any other fees payable by unit owners;
(f) A statement of any anticipated repair or replacement cost in
excess of five percent of the annual budget of the association that has
been approved by the board of directors;
(g) A statement of the amount of any reserves for repair or
replacement and of any portions of those reserves currently designated
by the association for any specified projects;
(h) The annual financial statement of the association, including
the audit report if it has been prepared, for the year immediately
preceding the current year;
(i) A balance sheet and a revenue and expense statement of the
association prepared on an accrual basis, which shall be current to
within one hundred twenty days;
(j) The current operating budget of the association;
(k) A statement of any unsatisfied judgments against the
association and the status of any pending suits or legal proceedings in
which the association is a plaintiff or defendant;
(l) A statement describing any insurance coverage provided for the
benefit of unit owners;
(m) A statement as to whether there are any alterations or
improvements to the unit or to the limited common elements assigned
thereto that violate any provision of the declaration;
(n) A statement of the number of units, if any, still owned by the
declarant, whether the declarant has transferred control of the
association to the unit owners, and the date of such transfer;
(o) A statement as to whether there are any violations of the
health or building codes with respect to the unit, the limited common
elements assigned thereto, or any other portion of the condominium;
(p) A statement of the remaining term of any leasehold estate
affecting the condominium and the provisions governing any extension or
renewal thereof;
(q) A copy of the declaration, the bylaws, the rules or regulations
of the association, the association's current reserve study, if any,
and any other information reasonably requested by mortgagees of
prospective purchasers of units. Information requested generally by
the federal national mortgage association, the federal home loan bank
board, the government national mortgage association, the veterans
administration and the department of housing and urban development
shall be deemed reasonable, provided such information is reasonably
available to the association;
(r) A statement, as required by RCW 64.35.210, as to whether the
units or common elements of the condominium are covered by a qualified
warranty, and a history of claims under any such warranty; and
(s) If the association does not have a reserve study that has been
prepared in accordance with RCW 64.34.380 and 64.34.382 or its
governing documents, the following disclosure:
"This association does not have a current reserve study. The lack of a current reserve study poses certain risks to you, the purchaser. Insufficient reserves may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a common element."