AN ACT
Relating to the satisfaction of unrecorded utility liens at the time of sale of
real property; adding a new chapter to Title 60 RCW; and providing an effective
date.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter:
(1)
Except as otherwise provided in this subsection (1), "charges"
include: (a) All lawful charges assessed by a utility operated under chapter
35.21, 35.67, 36.36, 36.89, 36.94, 56.16, 57.08, or 87.03 RCW, but not
evidenced by a recorded lien, recorded covenant, recorded agreement, or special
assessment roll filed with the city or county treasurer or assessor, and not
billed and collected with property taxes; and (b) penalties and interest, and
reasonable attorneys' fees and other costs of foreclosure if foreclosure
proceedings have been commenced.
(2)
"Closing agent" means an escrow agent as defined in RCW 18.44.010(4)
or a person exempt from licensing and registration requirements under RCW
18.44.020, handling the escrow on the sale of the real property.
(3)
"Real estate agent" means a real estate broker, real estate
salesperson, associate real estate broker, or person as defined in RCW
18.85.010 (1) through (4).
(4)
"Business day" means a day the offices of the county or counties in
which the utility in question provides service are open for business.
NEW
SECTION. Sec. 2. (1)
Unless otherwise stated and acknowledged in writing by the purchaser, the
seller of a fee interest in real property is responsible for satisfying, upon
closing, any lien provided for by RCW 35.21.290, 35.67.200, 36.36.045,
36.89.090, 36.94.150, 56.16.100, 57.08.080, or 87.03.445.
(2) No
closing agent may refuse a written request by the seller or purchaser of a fee
interest in real property to administer the disbursement of closing funds
necessary to satisfy unpaid charges as charges are defined in section 1 of this
act. Except as otherwise provided in this subsection (2), a closing agent who
refuses such a written request is liable to the purchaser for unpaid charges
for utility services covered by the request. A closing agent is not liable if
the closing agent's refusal is based on the seller's inaccurate or incomplete
identification of utilities providing service to the property, or if a utility
fails to provide an estimated or actual final billing, or written extension of
the per diem rate, as required by section 3 of this act, or if disbursement of
closing funds necessary to satisfy the unpaid charges would violate RCW
18.44.070.
(3) A
closing agent may charge a fee for performing the services required of the
closing agent by this chapter, which fee may be in addition to other fees or
settlement charges collected in the course of ordinary settlement practices.
NEW
SECTION. Sec. 3. (1)
Unless the seller and purchaser waive, in writing, the services of a closing
agent in administering the disbursement of closing funds necessary to satisfy
unpaid charges as charges are defined in section 1 of this act, the seller
shall, as a provision in a written agreement for the purchase and sale of real
estate, inform the closing agent for the sale of the names and addresses of all
utilities, including special districts, providing service to the property under
chapter 35.21, 35.67, 36.36, 36.89, 36.94, 56.16, 57.08, or 87.03 RCW. The
provision of the information in a written agreement for the purchase and sale
of real estate constitutes a written request to the closing agent to administer
disbursement of closing funds necessary to satisfy unpaid charges.
Unless
the seller and purchaser have waived the services of a closing agent as
provided in this subsection, the closing agent shall submit a written request
for a final billing to each utility identified by the seller as providing
service to the property under chapter 35.21, 35.67, 36.36, 36.89, 36.94, 56.16,
57.08, or 87.03 RCW. Either the seller or purchaser may submit a written
request for a final billing to each utility identified by the seller as
providing service to the property under chapter 35.21, 35.67, 36.36, 36.89,
36.94, 56.16, 57.08, or 87.03 RCW.
The
written request must identify the property by both legal description and
address. The closing agent, seller, or purchaser may submit a written request
to a utility by facsimile. In requesting final billings for utility services,
the closing agent may rely upon information provided by the seller, and a
closing agent or a real estate agent who is not the seller is not liable for
inaccurate or incomplete information.
(2)
After receiving a written request for a final billing for utility services to
real property to be sold, a utility operated under chapter 35.21, 35.67, 36.36,
36.89, 36.94, 56.16, 57.08, or 87.03 RCW shall provide the requesting party
with a written estimated or actual final billing as provided in this section.
If the utility is unable to provide a written estimated or actual final billing
or written extension of the per diem rate, due to insufficient information to
identify the account, the utility shall notify the requesting party in writing
that the information is insufficient to identify the account.
The
utility shall provide the written estimated or actual final billing, or
statement that the information in the request is insufficient to identify the
account, to the requesting party within seven business days of receipt of the
written request if the request was mailed to the utility, or within three
business days if the request was sent to the utility by facsimile or delivered
to the utility by messenger. A utility may provide a written estimated or
actual final billing to the requesting party by facsimile.
(a)
The final billing must include all outstanding charges and, in addition to the
estimated or actual final amount owing as of the stated closing date, must
state the average per diem rate for the utility or utilities involved,
including taxes and other charges, which shall apply for up to thirty days
beyond the stated closing date if the closing date is delayed.
(b) If
closing is delayed beyond thirty days, a new estimated or actual final billing
must be requested in writing. In lieu of furnishing a written revised final
billing, the utility may extend, in writing, the number of days for which the
per diem charge applies. The utility shall respond within seven business days
of receipt of the written request for a new estimated or actual final billing if
the request was mailed to the utility, or within three business days if the
request was sent to the utility by facsimile or delivered to the utility by
messenger.
(c) If
a utility fails to provide a written estimated or actual final billing, written
extension of the per diem rate, or statement that the information in the
request is insufficient to identify the account, within seven business days of
receipt of a written request if the request was mailed to the utility, or
within three business days if the request was sent to the utility by facsimile
or delivered to the utility by messenger, an unrecorded lien provided for by
RCW 35.21.290, 35.67.200, 36.36.045, 36.89.090, 36.94.150, 56.16.100,
57.08.080, or 87.03.445 for charges incurred prior to the closing date is
extinguished, and the utility may not recover the charges from the purchaser of
the property.
(d) A
closing agent shall inform the seller and purchaser of all applicable estimated
and actual final billings furnished by utilities.
In
performing his or her duties under this chapter, a closing agent may rely upon
information provided by utilities and is not liable if information provided by
utilities is inaccurate or incomplete.
(3) If
closing occurs no later than the last date for which per diem charges may be
applied, full payment of the estimated or actual final billing plus per diem
charges extinguishes a lien of the utility provided for by RCW 35.21.290,
35.67.200, 36.36.045, 36.89.090, 36.94.150, 56.16.100, 57.08.080, or 87.03.445
for charges incurred prior to the closing date.
(4)(a)
Except as otherwise provided in this subsection (4)(a), this section does not
limit the right of a utility to recover from the purchaser of the property
unpaid utility charges incurred prior to closing, if the utility did not
receive a written request for a final billing or if the utility complied with
subsection (2) of this section.
A
utility may not recover from a purchaser unpaid utility charges incurred prior
to closing in excess of an estimated final billing.
(b)
This section does not limit the right of a utility to recover unpaid utility
charges incurred prior to closing, including unpaid utility charges in excess
of an estimated final billing, from the seller of the property, or from the
person or persons who incurred the charges.
(c) If
an estimated final billing is in excess of the actual final billing, unless
otherwise directed in writing by the seller and purchaser, a utility shall
refund any overcharge to the seller of the property by sending the refund in
the seller's name to the last address provided by the seller. A utility shall
refund the overcharge within fourteen business days of the date the utility
receives payment for the final billing, unless a county treasurer acts in an ex
officio capacity as the treasurer of a utility, in which case the utility shall
refund the overcharge within thirty business days of the date the utility
receives payment for the final billing.
NEW
SECTION. Sec. 4. This act
shall take effect January 1, 1997.
NEW SECTION. Sec. 5. Sections
1 through 3 of this act shall constitute a new chapter in Title 60 RCW.
