FINAL BILL REPORT

                   SB 5741

                          C 400 L 97

                      Synopsis as Enacted

Brief Description:  Requiring a statement of permitted uses and use restrictions for condominiums.

Sponsors:  Senators Wood and Winsley.

Senate Committee on Financial Institutions, Insurance & Housing

House Committee on Financial Institutions & Insurance

Background:  In 1989, the Legislature enacted a Comprehensive Condominium Act.  The act deals with the legal creation of condominium property, the management of condominiums and the protection of condominium purchasers.

One problem area that led to adoption of the act was inadequate disclosures being made to purchasers.  The act requires sellers to provide a detailed public offering statement to purchasers.  The effect of errors and omissions of material issues in the public offering statement is unclear.

Summary:  An addition is made to the list of items that must be included in a public offering statement by the seller of a condominium.  The addition is a description of restrictions on owners and the declarant on renting new or existing units and any restrictions on the declarant on leasing at least a majority of the units.

A statement must also be included regarding compliance with the Housing for Older Americans Act.  The state fair housing law is amended to include an updated reference to recent amendments to the federal fair housing law.

Votes on Final Passage:

Senate 46 0

House     96 0 (House amended)

Senate    44 0 (Senate concurred)

Effective:  July 27, 1997