Provides that an obligation of good faith is imposed in the performance and enforcement of all contracts and duties governed by chapter 64.38 RCW and in all other transactions involving declarants, associations, and their members.

Modifies and implements provisions related to membership, powers, meetings, and governing documents of homeowners' associations.

Provides that a homeowners' association may levy reasonable fines and incorporate as a nonprofit corporation.

Provides that a seller of a lot that is part of a homeowners' association must furnish certain documents and information to the buyer.