AN ACT
Relating to real estate disclosure; amending RCW 64.06.010, 64.06.020,
64.06.030, 64.06.040, 64.06.050, and 64.06.070; and providing an effective
date.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec. 1. RCW 64.06.010 and 1994 c 200 s
2 are each amended to read as follows:
(1)
Except as provided in subsection (2) of this section, this chapter does not
apply to the following transfers of residential real property:
(((1)))
(a) A foreclosure, deed-in-lieu of foreclosure, real estate contract
forfeiture, or a sale by a lienholder who acquired the residential real
property through foreclosure ((or)), deed-in-lieu of foreclosure,
or real estate contract forfeiture;
(((2)))
(b) A gift or other transfer to a parent, spouse, or child of a
transferor or child of any parent or spouse of a transferor;
(((3)))
(c) A transfer between spouses in connection with a marital dissolution;
(((4)))
(d) A transfer where a buyer had an ownership interest in the property
within two years of the date of the transfer including, but not limited to, an
ownership interest as a partner in a partnership, a limited partner in a
limited partnership, a shareholder in a corporation, a leasehold interest, or
transfers to and from a facilitator pursuant to a tax deferred exchange;
(((5)))
(e) A transfer of an interest that is less than fee simple, except that
the transfer of a vendee's interest under a real estate contract is subject to
the requirements of this chapter; ((and
(6))) (f)
A transfer made by the personal representative of the estate of the decedent or
by a trustee in bankruptcy; and
(g)
A transfer of new residential construction, if the seller is registered under
chapter 18.27 RCW, and if the buyer is the first purchaser and occupant.
(2)
This chapter shall apply to transfers of residential real property exempt under
this section, if the seller provides to the buyer a completed real property
transfer disclosure statement in the form described in RCW 64.06.020(1).
Sec. 2. RCW 64.06.020 and 1994 c 200 s
3 are each amended to read as follows:
(1)
In a transaction for the sale of residential real property, the seller shall,
unless the buyer has expressly waived the right to receive the disclosure
statement, or unless the transfer is exempt under RCW 64.06.010, deliver to the
buyer a completed real property transfer disclosure statement in the following
((form)) format and that contains, at a minimum, the following
information:
INSTRUCTIONS
TO THE SELLER
Please
complete the following form. Do not leave any spaces blank. If the question
clearly does not apply to the property write "NA". If the answer is
"yes" to any * items, please explain on attached sheets. Please
refer to the line number(s) of the question(s) when you provide your
explanation(s). For your protection you must date and sign each page of this
disclosure statement and each attachment. Delivery of the disclosure statement
must occur not later than ((. . .)) five business days
(((or five days if not filled in) of)), unless otherwise agreed,
after mutual acceptance of a written contract to purchase between a buyer
and a seller.
NOTICE
TO THE BUYER
THE
FOLLOWING DISCLOSURES ARE MADE BY THE SELLER(S), CONCERNING THE CONDITION OF
THE PROPERTY LOCATED AT .......................................................................
("THE
PROPERTY"), OR AS LEGALLY DESCRIBED ON ATTACHED EXHIBIT A.
DISCLOSURES
CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S
ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME THIS DISCLOSURE FORM IS COMPLETED
BY THE SELLER. YOU HAVE ((. . .)) THREE BUSINESS DAYS,
((OR THREE BUSINESS DAYS IF NOT FILLED IN)) UNLESS OTHERWISE AGREED,
FROM THE SELLER'S DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO ((REVOKE
YOUR OFFER)) RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE
SIGNED WRITTEN STATEMENT OF ((REVOCATION)) RESCISSION TO THE
SELLER, UNLESS YOU WAIVE THIS RIGHT AT OR PRIOR TO ENTERING INTO A SALE
AGREEMENT. THE FOLLOWING ARE DISCLOSURES MADE BY THE SELLER AND ARE NOT THE
REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS INFORMATION
IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY WRITTEN
AGREEMENT BETWEEN THE BUYER AND THE SELLER.
FOR A MORE
COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY YOU ARE
ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF A QUALIFIED SPECIALIST TO INSPECT
THE PROPERTY ON YOUR BEHALF, FOR EXAMPLE, ARCHITECTS, ENGINEERS, LAND
SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, OR PEST AND
DRY ROT INSPECTORS. THE PROSPECTIVE BUYER AND THE OWNER MAY WISH TO OBTAIN
PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR
APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE,
INSPECTION, DEFECTS OR WARRANTIES.
Seller
. . . . is/ . . . . is not occupying the
property.
I. SELLER'S
DISCLOSURES:
*If
"Yes" attach a copy or explain. If necessary use an attached sheet.
1.
TITLE
[ ]Yes [ ]No [ ]Don't knowA. Do you have
legal authority to sell the property?
[ ]Yes [ ]No [ ]Don't know*B. Is title to
the property subject to any of the following?
(1)
First right of refusal
(2)
Option
(3)
Lease or rental agreement
(4)
Life estate?
[ ]Yes [ ]No [ ]Don't know*C. Are there
any encroachments, boundary agreements, or boundary disputes?
[ ]Yes [ ]No [ ]Don't know*D. Are there
any rights of way, easements, or access limitations that may affect the owner's
use of the property?
[ ]Yes [ ]No [ ]Don't know*E. Are there
any written agreements for joint maintenance of an easement or right of way?
[ ]Yes [ ]No [ ]Don't know*F. Is there any
study, survey project, or notice that would adversely affect the property?
[ ]Yes [ ]No [ ]Don't know*G. Are there
any pending or existing assessments against the property?
[ ]Yes [ ]No [ ]Don't know*H. Are there
any zoning violations, nonconforming uses, or any unusual restrictions on the
subject property that would affect future construction or remodeling?
[ ]Yes [ ]No [ ]Don't know*I. Is there a
boundary survey for the property?
[ ]Yes [ ]No [ ]Don't know*J. Are there
any covenants, conditions, or restrictions which affect the property?
2.
WATER
A.
Household Water
(1) The source of
the water is [ ]Public [ ]Community [ ]Private [ ]Shared
(2) Water source
information:
[ ]Yes [ ]No [ ]Don't know *a.
Are there any written agreements for shared water source?
[ ]Yes [ ]No [ ]Don't know *b.
Is there an easement (recorded or unrecorded) for access to and/or maintenance
of the water source?
[ ]Yes [ ]No [ ]Don't know *c.
Are any known problems or repairs needed?
[ ]Yes [ ]No [ ]Don't know *d.
Does the source provide an adequate year round supply of potable water?
[ ]Yes [ ]No [ ]Don't know *(3) Are
there any water treatment systems for the property? [ ]Leased
[ ]Owned
B.
Irrigation
[ ]Yes [ ]No [ ]Don't know (1) Are
there any water rights for the property?
[ ]Yes [ ]No [ ]Don't know *(2) If
they exist, to your knowledge, have the water rights been used during the last
five-year period?
[ ]Yes [ ]No [ ]Don't know *(3) If so,
is the certificate available?
C.
Outdoor Sprinkler System
[ ]Yes [ ]No [ ]Don't know (1) Is
there an outdoor sprinkler system for the property?
[ ]Yes [ ]No [ ]Don't know *(2) Are
there any defects in the outdoor sprinkler system?
3.
SEWER/SEPTIC SYSTEM
A. The property is served
by: [ ]Public sewer main, [ ]Septic tank system [ ]Other
disposal system (describe)
.............................................
[ ]Yes [ ]No [ ]Don't knowB. If the
property is served by a public or community sewer main, is the house connected
to the main?
C. Is the property
currently subject to a sewer capacity charge?
D. If the property
is connected to a septic system:
[ ]Yes [ ]No [ ]Don't know (1) Was a
permit issued for its construction, and was it approved by the city or county
following its construction?
(2) When was it last
pumped:
.............................. ,
19. . .
[ ]Yes [ ]No [ ]Don't know *(3) Are
there any defects in the operation of the septic system?
[ ]Don't know (4) When was it last
inspected?
.............................. ,
19. . .
By
Whom: ..............................
[ ]Don't know (5) How many bedrooms
was the system approved for?
............................... bedrooms
[ ]Yes [ ]No [ ]Don't know*((D)) E.
Do all plumbing fixtures, including laundry drain, go to the septic/sewer
system? If no, explain: ...
[ ]Yes [ ]No [ ]Don't know*((E)) F.
Are you aware of any changes or repairs to the septic system?
[ ]Yes [ ]No [ ]Don't know((F)) G.
Is the septic tank system, including the drainfield, located entirely within
the boundaries of the property?
4.
STRUCTURAL
[ ]Yes [ ]No [ ]Don't know*A. Has the roof
leaked?
[ ]Yes [ ]No [ ]Don't knowIf yes, has it
been repaired?
[ ]Yes [ ]No [ ]Don't know*B. Have there
been any conversions, additions, or remodeling?
[ ]Yes [ ]No [ ]Don't know *1. If yes,
were all building permits obtained?
[ ]Yes [ ]No [ ]Don't know *2. If yes,
were all final inspections obtained?
[ ]Yes [ ]No [ ]Don't knowC. Do you know
the age of the house? If yes, year of original construction:
.............................................
[ ]Yes [ ]No [ ]Don't know*D. Do you know
of any settling, slippage, or sliding of either the house or other structures/improvements
located on the property? If yes, explain:
.............................................
[ ]Yes [ ]No [ ]Don't know*E. Do you know
of any defects with the following: (Please check applicable items)
G Foundations G Decks G Exterior Walls
G Chimneys G Interior Walls G Fire Alarm
G Doors G Windows G Patio
G Ceilings G Slab Floors G Driveways
G Pools G Hot Tub G Sauna
G Sidewalks G Outbuildings G Fireplaces
G Garage Floors G Walkways
G Other G Wood Stoves
[ ]Yes [ ]No [ ]Don't know*F. Was a pest
or dry rot, structural or "whole house" inspection done? When and by
whom was the inspection completed?.............................................
[ ]Yes [ ]No [ ]Don't know*G. Since
assuming ownership, has your property had a problem with wood destroying
organisms and/or have there been any problems with pest control, infestations,
or vermin?
5.
SYSTEMS AND FIXTURES
If the following systems
or fixtures are included with the transfer, do they have any existing defects:
[ ]Yes [ ]No [ ]Don't know*A. Electrical
system, including wiring, switches, outlets, and service
[ ]Yes [ ]No [ ]Don't know*B. Plumbing
system, including pipes, faucets, fixtures, and toilets
[ ]Yes [ ]No [ ]Don't know*C. Hot water
tank
[ ]Yes [ ]No [ ]Don't know*D. Garbage
disposal
[ ]Yes [ ]No [ ]Don't know*E. Appliances
[ ]Yes [ ]No [ ]Don't know*F. Sump pump
[ ]Yes [ ]No [ ]Don't know*G. Heating and
cooling systems
[ ]Yes [ ]No [ ]Don't know*H. Security
system [ ] Owned [ ] Leased
*I. Other..........................................
6.
COMMON INTEREST
[ ]Yes [ ]No [ ]Don't knowA. Is there a
Home Owners' Association? Name of Association
[ ]Yes [ ]No [ ]Don't knowB. Are there
regular periodic assessments:
$.....................
per [ ] Month [ ] Year
[ ]
Other....................................
[ ]Yes [ ]No [ ]Don't know*C. Are there
any pending special assessments?
[ ]Yes [ ]No [ ]Don't know*D. Are there
any shared "common areas" or any joint maintenance agreements
(facilities such as walls, fences, landscaping, pools, tennis courts, walkways,
or other areas co-owned in undivided interest with others)?
7.
GENERAL
[ ]Yes [ ]No [ ]Don't know*A. Is there any
settling, soil, standing water, or drainage problems on the property?
[ ]Yes [ ]No [ ]Don't know*B. Does the
property contain fill material?
[ ]Yes [ ]No [ ]Don't know*C. Is there any
material damage to the property or any of the structure from fire, wind,
floods, beach movements, earthquake, expansive soils, or landslides?
[ ]Yes [ ]No [ ]Don't knowD. Is the
property in a designated flood plain?
(([ ]Yes [ ]No [ ]Don't knowE. Is the
property in a designated flood hazard zone?))
[ ]Yes [ ]No [ ]Don't know((*F.)) *E.
Are there any substances, materials, or products that may be an environmental
hazard such as, but not limited to, asbestos, formaldehyde, radon gas,
lead-based paint, fuel or chemical storage tanks, and contaminated soil or
water on the subject property?
[ ]Yes [ ]No [ ]Don't know((*G.)) *F.
Are there any tanks or underground storage tanks (e.g., chemical, fuel, etc.)
on the property?
[ ]Yes [ ]No [ ]Don't know((*H.)) *G.
Has the property ever been used as an illegal drug manufacturing site?
8.
FULL DISCLOSURE BY SELLERS
A. Other conditions or
defects:
[ ]Yes [ ]No [ ]Don't know*Are there any
other material defects affecting this property or its value that a prospective
buyer should know about?
B. Verification:
The foregoing answers and
attached explanations (if any) are complete and correct to the best of my/our
knowledge and I/we have received a copy hereof. I/we authorize all of my/our
real estate licensees, if any, to deliver a copy of this disclosure statement
to other real estate licensees and all prospective buyers of the property.
DATE . . . . . . .
SELLER . . . . . . . . . SELLER................................
II. BUYER'S
ACKNOWLEDGMENT
A.As buyer(s), I/we acknowledge the
duty to pay diligent attention to any material defects which are known to me/us
or can be known to me/us by utilizing diligent attention and observation.
B.Each buyer acknowledges and
understands that the disclosures set forth in this statement and in any
amendments to this statement are made only by the seller.
C.Buyer (which term includes all
persons signing the "buyer's acceptance" portion of this disclosure
statement below) hereby acknowledges receipt of a copy of this disclosure
statement (including attachments, if any) bearing seller's signature.
DISCLOSURES
CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S
ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME OF DISCLOSURE. YOU, THE BUYER,
HAVE ((. . .)) THREE BUSINESS DAYS (((OR THREE
BUSINESS DAYS IF NOT FILLED IN))), UNLESS OTHERWISE AGREED, FROM THE
SELLER'S DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO ((REVOKE YOUR
OFFER)) RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE SIGNED
WRITTEN STATEMENT OF ((REVOCATION)) RESCISSION TO THE SELLER
UNLESS YOU WAIVE THIS RIGHT OF ((REVOCATION)) RESCISSION.
BUYER
HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS REAL PROPERTY TRANSFER DISCLOSURE
STATEMENT AND ACKNOWLEDGES THAT THE DISCLOSURES MADE HEREIN ARE THOSE OF THE
SELLER ONLY, AND NOT OF ANY REAL ESTATE LICENSEE OR OTHER PARTY.
DATE
. . . . . . . BUYER
. . . . . . . . . BUYER..................................
(2)
The real property transfer disclosure statement shall be for disclosure only,
and shall not be considered part of any written agreement between the buyer and
seller of residential real property. The real property transfer disclosure
statement shall be only a disclosure made by the seller, and not any real
estate licensee involved in the transaction, and shall not be construed as a
warranty of any kind by the seller or any real estate licensee involved in the
transaction.
Sec. 3. RCW 64.06.030 and 1994 c 200 s
4 are each amended to read as follows:
Unless
the buyer has expressly waived the right to receive the disclosure statement,
((within)) not later than five business days or as otherwise
agreed to, ((of)) after mutual acceptance of a written agreement
between a buyer and a seller for the purchase and sale of residential real
property, the seller shall deliver to the buyer a completed, signed, and dated
real property transfer disclosure statement. Within three business days, or as
otherwise agreed to, of receipt of the real property transfer disclosure
statement, the buyer shall have the right to exercise one of the following two
options: (1) Approving and accepting the real property transfer disclosure
statement; or (2) rescinding the agreement for the purchase and sale of the
property, which decision may be made by the buyer in the buyer's sole
discretion. If the buyer elects to rescind the agreement, the buyer must
deliver written notice of rescission to the seller within the
three-business-day period, or as otherwise agreed to, and upon delivery of the
written rescission notice the buyer shall be entitled to immediate return of
all deposits and other considerations less any agreed disbursements paid to the
seller, or to the seller's agent or an escrow agent for the seller's account,
and the agreement for purchase and sale shall be void. If the buyer does not
deliver a written recision notice to [the] seller within the three-business-day
period, or as otherwise agreed to, the real property transfer disclosure
statement will be deemed approved and accepted by the buyer.
Sec. 4. RCW 64.06.040 and 1994 c 200 s
5 are each amended to read as follows:
(1)
If, after the date that a seller of residential real property completes a real
property transfer disclosure statement, the seller becomes aware of additional
information, or an adverse change occurs which makes any of the disclosures
made inaccurate, the seller shall amend the real property transfer disclosure
statement, and deliver the amendment to the buyer. No amendment shall be
required, however, if the seller takes whatever corrective action is necessary
so that the accuracy of the disclosure is restored, or the adverse change is
corrected, at least three business days prior to the closing date.
Unless the ((adverse change is corrected or repaired)) corrective
action is completed by the seller prior to the closing date, the buyer
shall have the right to exercise one of the following two options: (a)
Approving and accepting the amendment, or (b) rescinding the agreement of
purchase and sale of the property within three business days after receiving
the amended real property transfer disclosure statement. Acceptance or
recision shall be subject to the same procedures described in RCW 64.06.030.
If the closing date provided in the purchase and sale agreement is scheduled to
occur within the three-business-day rescission period provided for in
this section, the closing date shall be extended until the expiration of the
three-business-day rescission period. The buyer shall have no right of
rescission if the seller takes whatever action is necessary so that the
accuracy of the disclosure is restored at least three business days
prior to the closing date.
(2)
In the event any act, occurrence, or agreement arising or becoming known after
the closing of a residential real property transfer causes a real property
transfer disclosure statement to be inaccurate in any way, the seller of such
property shall have no obligation to amend the disclosure statement, and the
buyer shall not have the right to rescind the transaction under this chapter.
(3)
If the seller in a residential real property transfer fails or refuses to
provide to the prospective buyer a real property transfer disclosure statement
as required under this chapter, the prospective buyer's right of rescission
under this section shall apply until the earlier of three business days
after receipt of the real property transfer disclosure statement or the date
the transfer has closed, unless the buyer has otherwise waived the right of
rescission in writing. Closing is deemed to occur when the buyer has paid the
purchase price, or down payment, and the conveyance document, including a deed
or real estate contract, from the seller has been delivered and recorded.
After closing, the seller's obligation to deliver the real property transfer
disclosure statement and the buyer's rights and remedies under this chapter
shall terminate.
Sec. 5. RCW 64.06.050 and 1994 c 200 s
6 are each amended to read as follows:
(1)
The seller of residential real property shall not be liable for any error,
inaccuracy, or omission in the real property transfer disclosure statement if
the seller had no ((personal)) actual knowledge of the error,
inaccuracy, or omission. Unless the seller of residential real property has
actual knowledge of an error, inaccuracy, or omission in a real property
transfer disclosure statement, the seller shall not be liable for such error,
inaccuracy, or omission if the disclosure was based on information provided by
public agencies, or by other persons providing information within the scope of
their professional license or expertise, including, but not limited to, a
report or opinion delivered by a land surveyor, title company, title insurance
company, structural inspector, pest inspector, licensed engineer, or
contractor.
(2)
Any licensed real estate salesperson or broker involved in a residential real
property transaction is not liable for any error, inaccuracy, or omission in
the real property transfer disclosure statement if the licensee had no ((personal))
actual knowledge of the error, inaccuracy, or omission. Unless the
salesperson or broker has actual knowledge of an error, inaccuracy, or omission
in a real property transfer disclosure statement, the salesperson or broker
shall not be liable for such error, inaccuracy, or omission if the disclosure
was based on information provided by public agencies, or by other persons
providing information within the scope of their professional license or
expertise, including, but not limited to, a report or opinion delivered by a
land surveyor, title company, title insurance company, structural inspector,
pest inspector, licensed engineer, or contractor.
Sec. 6. RCW 64.06.070 and 1994 c 200 s
8 are each amended to read as follows:
Except
as provided in RCW 64.06.050, nothing in this chapter shall extinguish or
impair any rights or remedies of a buyer of real estate against the seller or
against any agent acting for the seller otherwise existing pursuant to common
law, statute, or contract; nor shall anything in this chapter create any new
right or remedy for a buyer of residential real property other than the right
of recision exercised on the basis and within the time limits provided in this
chapter.
NEW
SECTION. Sec. 7. Section
2 of this act shall take effect July 1, 1996.
