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. 1
was vetoed. See message at end of chapter.
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.
