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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