S-1208.1                   _______________________________________________

 

                                                     SENATE BILL 5576

                              _______________________________________________

 

State of Washington                              53rd Legislature                             1993 Regular Session

 

By Senators Haugen, Winsley, Drew and Fraser

 

Read first time 02/04/93.  Referred to Committee on Government Operations.

 

Requiring certain disclosures in the sale of residential real property.


          AN ACT Relating to requiring disclosures in the sale 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 that the purchase of residential real property is often the single largest transaction made by an individual and that many purchasers do not have the experience necessary to discover significant problems which may not otherwise become apparent until the sale is completed.

 

          NEW SECTION.  Sec. 2.  This chapter applies to all transfers of residential real property except transfers:

          (1) That involve a multiple housing structure with more than four living units;

          (2) Made to provide collateral for a loan of money, if the transferee does not receive the right to immediate possession of the property;

          (3) Made as a distribution to an heir of a decedent's estate;

          (4) Made under a court order, including, but not limited to, transfers under a writ of execution, transfers by a trustee in bankruptcy, transfers by eminent domain, transfers resulting from a decree of specific performance, or transfers resulting from a quiet title action;

          (5) Made as a property settlement in a marriage dissolution;

          (6) Made in a legal foreclosure or tax sale;

          (7) Made to a person other than an individual or individuals;

          (8) Made to a co-owner; or

          (9) Made to a spouse, or to a person in the lineal line of consanguinity of one or more of the transferors.

 

          NEW SECTION.  Sec. 3.  (1) Whenever an owner of residential real property offers the property for sale, the owner, at the earliest time practicable, shall disclose in writing to a prospective purchaser, to the best of his or her knowledge, the following information:

          (a) If the property is served by a septic system:

          (i) The location of the septic tank and drain field;

          (ii) When the tank was last pumped; and

          (iii) Whether a permit was issued for the septic system construction and whether it was approved by the city or county following its construction;

          (b) Whether or not required building and occupancy permits have been issued for any structures on the property; and

          (c) Whether or not property lines have been surveyed, the location of the corners of the property and whether there are any encroachments on the property.

          (2) For purposes of this section, the "earliest time practicable" means:

          (a) When the property is listed with a licensed real estate agent, the information required to be disclosed shall be prepared at the time the listing agreement is signed and shall be delivered to all prospective purchasers during the term of the listing agreement; or

          (b) When the property is not listed with a licensed real estate agent, the information required to be disclosed shall be prepared and delivered to a prospective purchaser at the time the prospective purchaser first makes known to the owner an interest in purchasing the property.

          (3) The disclosures required by subsection (1) of this section may be incorporated in a general disclosure form adopted for use by real estate brokers and agents.

          (4) Delivery of disclosures required by this chapter shall be by personal delivery or mail to the prospective purchaser.

 

          NEW SECTION.  Sec. 4.  (1) Prior to the closing of a real estate sale subject to this chapter, and until the required disclosures have been delivered to a prospective purchaser and for five days following receipt of all of the required disclosures, the purchaser may rescind any agreement to purchase the property and recover, in full, any deposits or earnest money paid, notwithstanding the provisions of any agreement regarding the disposition of the deposits or earnest money.

          (2) Following the closing of a real estate sale subject to this chapter, if the required disclosures were not delivered to the purchaser at least six days prior to the closing, the person responsible for making the disclosures is liable to the purchaser in the amount of actual damages suffered by the purchaser resulting from the failure to make the required disclosures.

 

          NEW SECTION.  Sec. 5.  The specification of items for disclosure in this chapter does not limit or abridge any obligation for disclosure created by any other provision of law that may exist in order to avoid fraud, misrepresentation, or deceit in the transfer transaction.

 

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

 


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