H-3619.1  _______________________________________________

                          HOUSE BILL 2751

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Dunshee, Mulliken and Berkey

Read first time 01/25/2002.  Referred to Committee on Local Government & Housing.

Changing the residential real property seller disclosure statement.

    AN ACT Relating to the residential real property seller disclosure statement; and amending RCW 64.06.020.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 64.06.020 and 1996 c 301 s 2 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 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, 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)) SELLER ABOUT 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 MAKES THE FOLLOWING DISCLOSURES OF EXISTING MATERIAL FACTS OR MATERIAL DEFECTS THAT ARE NOT APPARENT OR READILY ASCERTAINABLE TO BUYER BASED ON SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME ((THIS DISCLOSURE FORM IS COMPLETED BY THE SELLER.)) SELLER COMPLETES THIS DISCLOSURE STATEMENT.  UNLESS YOU AND SELLER OTHERWISE AGREE IN WRITING, YOU HAVE THREE BUSINESS DAYS((, UNLESS OTHERWISE AGREED, FROM THE SELLER'S DELIVERY OF THIS SELLER'S)) FROM THE DAY SELLER DELIVERS THIS DISCLOSURE STATEMENT TO YOU TO RESCIND ((YOUR)) THE AGREEMENT BY DELIVERING ((YOUR SEPARATE)) A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO ((THE SELLER, UNLESS YOU WAIVE THIS RIGHT)) SELLER.  YOU MAY, HOWEVER, WAIVE THE RIGHT TO RESCIND AT OR PRIOR TO ((ENTERING)) THE TIME YOU ENTER 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)) QUALIFIED EXPERTS TO INSPECT THE PROPERTY, WHICH MAY INCLUDE, WITHOUT LIMITATION, ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, OR PEST AND DRY ROT INSPECTORS.  THE PROSPECTIVE BUYER AND ((THE OWNER)) SELLER MAY WISH TO OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY ((AND)) OR 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)) you answer "Yes" to a question with an asterisk (*), please explain your answer and attach documents, if available and not otherwise publicly recorded.  If necessary, use an attached sheet.

                         1. TITLE

[ ]Yes [ ]No [ ]Don't knowA. Do you have legal authority to sell the property?  If no, please explain.

[ ]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)) Buyer'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 for the property is:

[ ]Publicly owned water system

[ ]Private well serving only the subject property . . . . . . . . .

*[ ]Other water system

[ ]Yes [ ]No [ ]Don't know *If shared, are there any written agreements?

                              (([ ]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.)) *(2) Is there an easement (recorded or unrecorded) for access to and/or maintenance of the water source?

[ ]Yes [ ]No [ ]Don't know    ((*c.)) *(3) Are there any known problems or repairs needed?

[ ]Yes [ ]No [ ]Don't know    ((*d. Does)) (4) During your ownership, has the source ((provide)) provided an adequate year round supply of potable water?  If no, please explain.

[ ]Yes [ ]No [ ]Don't know    ((*(3))) *(5) Are there any water treatment systems for the property?  If yes, are they  [ ]Leased [ ]Owned

[ ]Don't know (6) If the water source is not publicly owned, when was it last tested for water quality?

Year: . . . . . . . . . . . . . .

                              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,))

*(a) If yes, have the water rights been used during the last ((five-year period)) five years?

[ ]Yes [ ]No [ ]Don't know    ((*(3)))*(b) 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))) (2) If yes, are there any defects in the ((outdoor sprinkler)) system? . . . . . . .

[ ]Yes [ ]No [ ]Don't know *(3) If yes, is the sprinkler system connected to irrigation water?

                         3. SEWER/SEPTIC SYSTEM

                         A. The property is served by:  [ ]Public sewer main, [ ]Septic ((tank)) system (including pipes, tanks, drainfields, and all other component parts) [ ]Other disposal system (((describe))) Please 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?  If no, please explain.

[ ]Yes [ ]No [ ]Don't knowC. Is the property ((currently subject to a sewer capacity charge)) subject to any fees or charges in addition to those covered in your regularly billed statement?  If yes, how much? . . . . .

[ ]Yes [ ]No [ ]Don't knowD. 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) For how many bedrooms was the septic system approved ((for))?

                                   ....................... bedrooms

[ ]Yes [ ]No [ ]Don't know((*E. Do)) E. Are all plumbing fixtures, including laundry drain, ((go)) connected to the septic/sewer system?  If no, please explain:

                         ........................................

[ ]Yes [ ]No [ ]Don't know*F. ((Are you aware of)) Have there been any changes or repairs to the septic system?

[ ]Yes [ ]No [ ]Don't knowG. Is the septic ((tank)) system((, including the drainfield,)) located entirely within the boundaries of the property?  If no, please explain.

                         ........................................

                         4. STRUCTURAL

[ ]Yes [ ]No [ ]Don't know*A. During your ownership, has the roof leaked?

(([ ]Yes [ ]No [ ]Don't knowIf yes, has it been repaired?))

[ ]Yes [ ]No [ ]Don't know*B. During your ownership, has the basement flooded or leaked?

[ ]Yes [ ]No [ ]Don't know*C. During your ownership, have there been any conversions, additions, or remodeling?

[ ]Yes [ ]No [ ]Don't know    ((*1.)) *(1) If yes, were all building permits obtained?

[ ]Yes [ ]No [ ]Don't know    ((*2.)) *(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 *(3) Have all contractors, subcontractors, suppliers, and laborers been paid?

[ ]Yes [ ]No [ ]Don't know*D. ((Do you know of)) During your ownership, has there been any settling, slippage, or sliding of ((either the house or other structures/improvements located on the property?  If yes, explain:)) the property or its improvements?

                              ((............................... ))

[ ]Yes [ ]No [ ]Don't know*E. ((Do you know of)) Are there any defects with the following:  (If  yes, please check applicable items and explain.)

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 Siding

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?)) During your ownership, has the property had any dry rot or pest infestation?

                         5. SYSTEMS AND FIXTURES

                         ((If)) *A. If any of the following systems or fixtures are included with the transfer, ((do they have any existing defects:)) are there any defects?  If yes, please explain.

[ ]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..................

*B. If any of the following fixtures or property is included with the transfer, are they leased?  (If yes, please attach copy of lease.)

[ ]Yes [ ]No [ ]Don't know Security system . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know Tanks (type): . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know Satellite dish . . . . . . . . . .

Other: . . . . . . . . . . . . . .

                         6. COMMON INTERESTS

[ ]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,)) During your ownership, has there been any standing water((,)) or drainage problems on the property?

[ ]Yes [ ]No [ ]Don't know*B. Does the property contain any 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. Has the local (city or county) planning agency designated your property as a "frequently flooded area"?

[ ]Yes [ ]No [ ]Don't know((*E.)) *F. Are there any substances, materials, or products on the property that may be ((an)) environmental ((hazard such as, but not limited to,)) limitations, such as asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, ((and)) mold, or contaminated soil or water ((on the subject property))?

[ ]Yes [ ]No [ ]Don't know((*F.)) *G. Are there any tanks or underground storage tanks (e.g., chemical, fuel, etc.) on the property?

[ ]Yes [ ]No [ ]Don't know((*G.)) *H. Has the property ever been used as an illegal drug manufacturing site?

8. MANUFACTURED AND MOBILE HOMES

If the property includes a manufactured or mobile home for which title has not been eliminated under chapter 65.20 RCW,

[ ]Yes [ ]No [ ]Don't know*A. Did you make any alterations to the home?  If yes, please describe the alterations:

. . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know*B. Did any previous owner make any alterations to the home?  If yes, please describe the alterations:

. . . . . . . . . . . . . . . . . . . .

                         ((8.)) 9. FULL DISCLOSURE BY SELLERS

                         A. Other conditions or defects:

[ ]Yes [ ]No [ ]Don't know*Are there any other existing material defects or material facts affecting ((this)) the property ((or its value that a prospective buyer should know about)) that are not apparent or readily ascertainable to Buyer?

                         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)) Buyer hereby acknowledges that:  Buyer has a duty to pay diligent attention to any material defects ((which)) that are known to ((me/us)) Buyer or can be known to ((me/us)) Buyer 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 and not by any real estate licensee or other party.

               C.Buyer acknowledges that, pursuant to RCW 64.06.050(2), real estate licensees are not liable for inaccurate information provided by Seller, except to the extent that real estate licensees know of such inaccurate information.

D.This information is for disclosure only and is not intended to be a part of the written agreement between the Buyer and Seller.

E.Buyer (which term includes all persons signing the "Buyer's acceptance" portion of this disclosure statement below) ((hereby acknowledges receipt of)) has received a copy of this Disclosure Statement (including attachments, if any) bearing Seller's signature.

DISCLOSURES CONTAINED IN THIS ((FORM)) DISCLOSURE STATEMENT ARE PROVIDED BY ((THE)) SELLER BASED ON ((THE BASIS OF)) SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME ((OF DISCLOSURE.  YOU, THE BUYER,)) SELLER COMPLETES THIS DISCLOSURE STATEMENT, UNLESS BUYER AND SELLER OTHERWISE AGREE IN WRITING, BUYER SHALL HAVE THREE BUSINESS DAYS((, UNLESS OTHERWISE AGREED, FROM THE SELLER'S DELIVERY OF THIS SELLER'S)) FROM THE DAY SELLER DELIVERS THIS DISCLOSURE STATEMENT TO RESCIND ((YOUR)) THE AGREEMENT BY DELIVERING ((YOUR SEPARATE SIGNED)) A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO ((THE)) SELLER ((UNLESS YOU WAIVE THIS RIGHT OF RESCISSION)).  BUYER MAY, HOWEVER, WAIVE THE RIGHT TO RESCIND AT OR PRIOR TO THE TIME BUYER ENTERS INTO A PURCHASE AND SALE AGREEMENT.

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.

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