S‑0478.2   _____________________________________________

 

SENATE BILL 5774

 

           _____________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Senators Kohl‑Welles, Winsley and Fairley

 

Read first time 02/02/2001.  Referred to Committee on Labor, Commerce & Financial Institutions.

_1      AN ACT Relating to condominium resale certificates; and

_2  amending RCW 64.34.425.

     

_3  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     

_4      Sec. 1.  RCW 64.34.425 and 1992 c 220 s 23 are each amended to read

_5  as follows:

_6      (1) Except in the case of a sale where delivery of a public

_7  offering statement is required, or unless exempt under RCW

_8  64.34.400(2), a unit owner shall furnish to a purchaser before

_9  execution of any contract for sale of a unit, or otherwise before

10  conveyance, a resale certificate, signed by an officer or

11  authorized agent of the association and based on the books and

12  records of the association and the actual knowledge of the person

13  signing the certificate, containing:

14      (a) A statement disclosing any right of first refusal or other

15  restraint on the free alienability of the unit contained in the

16  declaration;

17      (b) A statement setting forth the amount of the monthly common

18  expense assessment and any unpaid common expense or special

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_1  assessment currently due and payable from the selling unit owner

_2  and a statement of any special assessments that have been levied

_3  against the unit which have not been paid even though not yet due;

_4      (c) A statement, which shall be current to within forty-five

_5  days, of any common expenses or special assessments against any

_6  unit in the condominium that are past due over thirty days;

_7      (d) A statement, which shall be current to within forty-five

_8  days, of any obligation of the association which is past due over

_9  thirty days;

10      (e) A statement of any other fees payable by unit owners;

11      (f) A statement of any anticipated repair or replacement cost

12  in excess of five percent of the annual budget of the association

13  that has been approved by the board of directors;

14      (g) A statement of the amount of any reserves for repair or

15  replacement and of any portions of those reserves currently

16  designated by the association for any specified projects;

17      (h) The annual financial statement of the association,

18  including the audit report if it has been prepared, for the year

19  immediately preceding the current year((.));

20      (i) A balance sheet and a revenue and expense statement of the

21  association prepared on an accrual basis, which shall be current

22  to within one hundred twenty days;

23      (j) The current operating budget of the association;

24      (k) A statement of any unsatisfied judgments against the

25  association and the status of any pending suits in which the

26  association is a defendant;

27      (l) A statement describing any insurance coverage provided for

28  the benefit of unit owners;

29      (m) A statement as to whether there are any alterations or

30  improvements to the unit or to the limited common elements

31  assigned thereto that violate any provision of the declaration;

32      (n) A statement of the number of units, if any, still owned by

33  the declarant, whether the declarant has transferred control of

34  the association to the unit owners, and the date of such transfer;

35      (o) A statement as to whether there are any violations of the

36  health or building codes with respect to the unit, the limited

37  common elements assigned thereto, or any other portion of the

38  condominium;

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_1      (p) A statement of the remaining term of any leasehold estate

_2  affecting the condominium and the provisions governing any

_3  extension or renewal thereof; and

_4      (q) A copy of the declaration, the bylaws, the rules or

_5  regulations of the association, and any other information

_6  reasonably requested by mortgagees of prospective purchasers of

_7  units.  Information requested generally by the federal national

_8  mortgage association, the federal home loan bank board, the

_9  government national mortgage association, the veterans

10  administra­tion and the department of housing and urban development

11  shall be deemed reasonable, provided such information is

12  reasonably available to the association.

13      (2) The association, within ten days after a request by a unit

14  owner, and subject to payment of any fee imposed pursuant to RCW

15  64.34.304(1)(l), shall furnish a resale certificate signed by an

16  officer or authorized agent of the association and containing the

17  information necessary to enable the unit owner to comply with this

18  section.  For the purposes of this chapter, a reasonable charge for

19  the preparation of a resale certificate may not exceed ((one)) two

20  hundred fifty dollars.  The association may charge a unit owner a

21  nominal fee for updating a resale certificate within six months of

22  the unit owner's request.  The unit owner shall also sign the

23  certificate but the unit owner is not liable to the purchaser for

24  any erroneous information provided by the association and included

25  in the certificate unless and to the extent the unit owner had

26  actual knowledge thereof.

27      (3) A purchaser is not liable for any unpaid assessment or fee

28  against the unit as of the date of the certificate greater than

29  the amount set forth in the certificate prepared by the

30  association unless and to the extent such purchaser had actual

31  knowledge thereof.  A unit owner is not liable to a purchaser for

32  the failure or delay of the association to provide the certificate

33  in a timely manner, but the purchaser's contract is voidable by

34  the purchaser until the certificate has been provided and for five

35  days thereafter or until conveyance, whichever occurs first.

 

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