SB 6701 -
By Senator Haugen
Strike everything after the enacting clause and insert the following:
Sec. 1 RCW 64.50.010 and 2002 c 323 s 2 are each amended to read
as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Action" means any civil lawsuit or action in contract or tort
for damages or indemnity brought against a construction professional to
assert a claim, whether by complaint, counterclaim, or cross-claim, for
damage or the loss of use of real or personal property caused by a
defect in the construction of a residence or in the substantial remodel
of a residence. "Action" does not include any civil action in tort
alleging personal injury or wrongful death to a person or persons
resulting from a construction defect.
(2) "Association" means an association, master association, or
subassociation as defined and provided for in RCW 64.34.020(4),
64.34.276, 64.34.278, and 64.38.010(1).
(3) "Claimant" means a homeowner or association who asserts a claim
against a construction professional concerning a defect in the
construction of a residence or in the substantial remodel of a
residence.
(4) "Construction professional" means an architect, builder,
builder vendor, contractor, subcontractor, engineer, or inspector,
including, but not limited to, a dealer as defined in RCW
64.34.020(((12))) and a declarant as defined in RCW 64.34.020(((13))),
performing or furnishing the design, supervision, inspection,
construction, or observation of the construction of any improvement to
real property, whether operating as a sole proprietor, partnership,
corporation, or other business entity.
(5) "Homeowner" means: (a) Any person, company, firm, partnership,
corporation, or association who contracts with a construction
professional for the construction, sale, or construction and sale of a
residence; and (b) an "association" as defined in this section.
"Homeowner" includes, but is not limited to, a subsequent purchaser of
a residence from any homeowner.
(6) "Residence" means a single-family house, duplex, triplex,
quadraplex, or a unit in a multiunit residential structure in which
title to each individual unit is transferred to the owner under a
condominium or cooperative system, and shall include common elements as
defined in RCW 64.34.020(6) and common areas as defined in RCW
64.38.010(4).
(7) "Response notice" means a written response provided by a
construction professional under RCW 64.50.020(2).
(8) "Serve" or "service" means personal service or delivery by
certified mail to the last known address of the addressee.
(((8))) (9) "Substantial remodel" means a remodel of a residence,
for which the total cost exceeds one-half of the assessed value of the
residence for property tax purposes at the time the contract for the
remodel work was made.
Sec. 2 RCW 64.50.020 and 2002 c 323 s 3 are each amended to read
as follows:
(1) In every construction defect action brought against a
construction professional, the claimant shall, no later than forty-five
days before filing an action, serve written notice of claim on the
construction professional. The notice of claim shall state that the
claimant asserts a construction defect claim against the construction
professional and shall describe the claim in reasonable detail
sufficient to determine the general nature of the defect.
(2) Within twenty-one days after service of the notice of claim,
the construction professional shall serve a written response notice on
the claimant by registered mail or personal service. The written
response notice shall:
(a) Propose to inspect the residence that is the subject of the
claim, including a description of the scope of the inspection, and to
complete the inspection within a specified time frame. The proposal
shall include the statement that the construction professional shall,
based on the inspection, offer to remedy the defect, compromise by
payment, or dispute the claim;
(b) Offer to compromise and settle the claim by monetary payment
without inspection. A construction professional's offer under this
subsection (2)(b) to compromise and settle a homeowner's claim may
include, but is not limited to, an express offer to purchase the
claimant's residence that is the subject of the claim, and to pay the
claimant's reasonable relocation costs; or
(c) State that the construction professional disputes the claim and
will neither remedy the construction defect nor compromise and settle
the claim.
(3)(a) If the construction professional disputes the claim or does
not respond to the claimant's notice of claim within the time stated in
subsection (2) of this section, the claimant may bring an action
against the construction professional for the claim described in the
notice of claim without further notice.
(b) If the claimant rejects the ((inspection proposal or the))
settlement offer made by the construction professional pursuant to
subsection (2) of this section, the claimant shall serve written notice
of the claimant's rejection on the construction professional. After
service of the rejection, the claimant may bring an action against the
construction professional for the construction defect claim described
in the notice of claim. If the construction professional has not
received from the claimant, within thirty days after the claimant's
receipt of the construction professional's response, either an
acceptance or rejection of the ((inspection proposal or)) settlement
offer, then at anytime thereafter the construction professional may
terminate the ((proposal or)) offer by serving written notice to the
claimant, and the claimant may thereafter bring an action against the
construction professional for the construction defect claim described
in the notice of claim.
(4)(a) If the ((claimant elects to allow the)) construction
professional proposes to inspect ((in accordance with the construction
professional's proposal)) pursuant to subsection (2)(a) of this
section, the claimant shall provide the construction professional and
its contractors or other agents reasonable access to the claimant's
residence during normal working hours to inspect the premises and the
claimed defect.
(b) Whether conducted by a third-party inspector or the
construction professional, the person conducting the inspection shall
produce a written report that describes the scope of the inspection,
the findings and results of the inspection, a description of the
additional construction necessary to remedy the defect described in the
claim, a timetable for the completion of such construction, and an
estimate of the costs of repair.
(c) Within fourteen days following completion of the inspection and
delivery of the inspection report, the construction professional shall
serve on the claimant:
(i) A written offer to remedy the construction defect at no cost to
the claimant((, including a report of the scope of the inspection, the
findings and results of the inspection, a description of the additional
construction necessary to remedy the defect described in the claim, and
a timetable for the completion of such construction));
(ii) A written offer to compromise and settle the claim by monetary
payment pursuant to subsection (2)(b) of this section; or
(iii) A written statement that the construction professional will
not proceed further to remedy the defect.
(((c))) (d) If the construction professional does not proceed
further to remedy the construction defect within the agreed timetable,
or if the construction professional fails to comply with the provisions
of (((b))) (c) of this subsection, the claimant may bring an action
against the construction professional for the claim described in the
notice of claim without further notice.
(((d))) (e) If the claimant rejects the offer made by the
construction professional pursuant to (((b))) (c)(i) or (ii) of this
subsection to either remedy the construction defect or to compromise
and settle the claim by monetary payment, the claimant shall serve
written notice of the claimant's rejection on the construction
professional.
(f) After service of the rejection notice pursuant to (e) of this
subsection, the claimant may bring an action against the construction
professional for the construction defect claim described in the notice
of claim. If the construction professional has not received from the
claimant, within thirty days after the claimant's receipt of the
construction professional's response, either an acceptance or rejection
of the offer made pursuant to (((b))) (c)(i) or (ii) of this
subsection, then at anytime thereafter the construction professional
may terminate the offer by serving written notice to the claimant.
(5)(a) Any claimant accepting the offer of a construction
professional to remedy the construction defect pursuant to subsection
(((4)(b)(i))) (4)(c)(i) of this section shall do so by serving the
construction professional with a written notice of acceptance within a
reasonable time period after receipt of the offer, and no later than
thirty days after receipt of the offer. The claimant shall provide the
construction professional and its contractors or other agents
reasonable access to the claimant's residence during normal working
hours to perform and complete the construction by the timetable stated
in the offer.
(b) The claimant and construction professional may, by written
mutual agreement, alter the extent of construction or the timetable for
completion of construction stated in the offer, including, but not
limited to, repair of additional defects.
(6) Any action commenced by a claimant prior to compliance with the
requirements of this section shall be subject to dismissal without
prejudice, and may not be recommenced until the claimant has complied
with the requirements of this section.
(7) Nothing in this section may be construed to prevent a claimant
from commencing an action on the construction defect claim described in
the notice of claim if the construction professional fails to perform
the construction agreed upon, fails to remedy the defect, or fails to
perform by the timetable agreed upon pursuant to subsection (2)(a) or
(5) of this section.
(8) Prior to commencing any action with a court or the residential
construction board alleging a construction defect, or after the
dismissal of any action without prejudice pursuant to subsection (6) of
this section, the claimant may amend the notice of claim to include
construction defects discovered after the service of the original
notice of claim, and must otherwise comply with the requirements of
this section for the additional claims. The service of an amended
notice of claim shall relate back to the original notice of claim for
purposes of tolling statutes of limitations and repose. Claims for
defects discovered after the commencement or recommencement of an
action may be added to such action only after providing notice to the
construction professional of the defect and allowing for response under
subsection (2) of this section.
NEW SECTION. Sec. 3 For the purposes of sections 4 through 13 of
this act, the following definitions apply unless the context clearly
requires otherwise:
(1) "Board" means the residential construction board created under
section 4 of this act.
(2) "Contractor" means a person registered under chapter 18.27 RCW
who performed services for the construction, alteration, or repair of
a residence.
(3) "Mediator" means a person selected by the residential
construction board to investigate defect complaints under this chapter.
(4) "Owner" means a person that possesses an interest in a
residence or in land that is a residential site or has entered into a
contract for the purchase of an interest in the residence or land.
"Owner" includes, but is not limited to, a subsequent purchaser of a
residence from any owner.
(5) "Residence" means a single-family house, duplex, triplex, or
quadraplex.
NEW SECTION. Sec. 4 A residential construction board is created
in the office of the attorney general. The board shall consist of
seven members, appointed by the governor. The governor shall appoint
initial members of the board to staggered terms of two to four years.
Thereafter, all members shall be appointed to full four-year terms.
Members of the board hold their office until successors are appointed.
A vacancy is filled by appointment by the governor for the unexpired
portion of the term in which the vacancy occurs. Existing members of
the board may be reappointed for additional terms. The board shall
select from its members a chair, vice-chair, and any other officer the
board determines is necessary to perform its duties. The board shall
consist of:
(1) Three members possessing a minimum of ten years of experience
in the construction of residences and directly, as employees or
officers of a firm, registered under chapter 18.27 RCW;
(2) One member possessing a minimum of ten years of experience in
the remodeling of residences and directly, as employees or officers of
a firm, registered under chapter 18.27 RCW;
(3) One building inspector employed by a city or county; and
(4) Two members of the general public.
NEW SECTION. Sec. 5 (1) The board shall form and manage a
consumer education office whose duties must include:
(a) Educating consumers about contracting for residential
construction services, including the requirements of chapter 18.27 RCW
and methods available to protect themselves against loss;
(b) Producing written and electronic consumer education materials
about contracting for residential construction services and legal
resources available to consumers;
(c) Creating a pamphlet explaining a homeowner's legal rights and
remedies and provide contractors and other construction professionals
with a downloadable version of the brochure to attach to contracts for
purchase and sale of new residential real property or the substantial
remodel of existing residential real property. The office shall
periodically update this pamphlet;
(d) Identifying and working collaboratively with agencies and
organizations who are already engaged in consumer education efforts in
the area of residential construction, such as the department of labor
and industries, the department of licensing, local governments, the
construction industry, financial institutions, and other interested
organizations and individuals, to increase outreach to consumers;
(e) Sharing consumer education materials with and serve as a
resource for agencies and organizations who are already engaged in
consumer education;
(f) Developing a uniform manner of receiving, cataloging,
analyzing, and responding to consumer complaints about residential
construction;
(g) Identifying which agencies and organizations are already
receiving complaints and coordinate with them to ensure that all
agencies and organizations are requesting the same information from
complaining consumers and that all consumers are referred to the
office;
(h) Entering into data-sharing agreements with the department of
labor and industries, local governments, and other agencies with
enforcement duties in residential construction to increase assistance
to consumers and enforcement of construction-related laws; and
(i) Reporting to the legislature on an annual basis the total
number of complaints, the nature of the complaints, the monetary value
of the complaints, whether complaints have been resolved, and any other
information that the office deems relevant. The first report is due on
January 1, 2011, and subsequent reports are due on November 1st of each
year thereafter.
(2) The board shall:
(a) Manage a residential construction complaint resolution process
consistent with the requirements of sections 7 through 13 of this act;
and
(b) Report to the legislature on an annual basis any
recommendations for changes in law or rule to improve the quality of
residential home construction.
NEW SECTION. Sec. 6 (1) The board shall solicit and review
qualifications for mediators based on the following standards:
(a) Minimum of ten years of experience in residential construction;
(b) Current contractors registration in the state or former
contractors registration in the state, provided that the registration
was not terminated by an action of the department of labor and
industries; and
(c) Other qualifications the board may deem appropriate.
(2)(a) By a majority vote, the board shall select mediators that
meet the qualifications of the board. There is no right of appeal of
a selection decision made by the board. All qualified mediator names
must be compiled into a single ranked list. Names of newly selected
mediators must be added to the bottom of the list.
(b) Mediators may not be employees of the board or the state.
Mediators must be paid on a per case basis at a rate set by the board.
(c) Mediators may be removed from the list for any reason by a
majority vote of the members of the board. There is no right of appeal
of a removal decision made by the board.
NEW SECTION. Sec. 7 (1) The board shall assign a mediator to
each complaint filed with the board. The board shall assign the
mediator from the top of the list of mediators approved by the board by
providing written notice to the mediator, owner, and contractor of the
assignment.
(2) A mediator may reject an assignment for any reason by providing
written notice to the board within five business days of receiving the
assignment notice from the board. A mediator shall reject an
assignment if the mediator is aware of any common financial interest
between the mediator and the owner or contractor.
(3) The mediator shall disclose in writing within three business
days of receiving the assignment notice to the board, the owner, and
the contractor any preexisting personal or professional relationships
between the mediator and the owner or the contractor. The presence of
a preexisting relationship is not a basis for requiring a mediator to
reject an assignment.
(4) The owner may reject up to one mediator for any reason, by
providing written notice to the board of the rejection within five
business days of receiving the assignment notice from the board.
(5) The contractor may reject up to one mediator for any reason, by
providing written notice to the board of the rejection within five
business days of receiving the assignment notice from the board.
(6) If a mediator assignment is rejected for any reason, the board
shall assign the next mediator in the manner provided for under this
section.
(7) After the mediator is assigned to a complaint, regardless of
whether the mediator rejects or is rejected from further investigation
of the complaint, the mediator's name must be added at the bottom of
the list of approved mediators and must be available for assignment to
future cases as the mediator's name advances on the list.
NEW SECTION. Sec. 8 If an owner files a complaint with the board
against any contractor to assert a claim arising out of or related to
the construction, alteration, or repair of a residence located in this
state and the owner has not followed the procedure set forth in this
chapter, the board shall dismiss the complaint without prejudice.
NEW SECTION. Sec. 9 A complaint filed under section 11 of this
act must arise from the performance, or a contract for the performance,
of work that requires a contractor registered under chapter 18.27 RCW.
NEW SECTION. Sec. 10 The board must receive the complaint no
later than six years after the substantial completion of construction
as defined in RCW 4.16.310. If a complaint is filed with the board
within the applicable statute of limitations, the filing of the
complaint tolls the statute of limitations for the period of time until
the board issues a decision under section 11 of this act. If a
complaint is filed with the board within the time limitations contained
in a written express warranty, the filing of the complaint tolls the
timeline for filing claims under the written express warranty for the
period of time until the board provides final notice to the homeowner
and contractor under section 12 of this act.
NEW SECTION. Sec. 11 (1) Prior to commencing any construction
action with a court relating to the quality of construction of a
residence or filing a claim under a written express warranty complying
with section 18 of this act, an owner must submit a complaint to the
board.
(2) The owner must file the complaint with the board in a form and
manner prescribed by the board.
(3) The board shall suspend processing of the complaint if:
(a) The board determines that the nature or complexity of the
dispute described in the complaint is such that a court is the
appropriate forum for the adjudication of the dispute; or
(b) The board determines that the contractor is not registered
under chapter 18.27 RCW.
(4) The board may dismiss or close the complaint if any of the
following conditions apply:
(a) The owner does not respond to a mediator request and the
request is necessary to the mediator's investigation of the complaint;
(b) The owner does not allow the mediator to conduct one or more
on-site meetings to mediate or investigate the complaint;
(c) The owner does not permit the contractor against whom the
complaint is filed to be present at an on-site investigation made by
the mediator; or
(d) The mediator determines that the contractor against whom the
complaint is filed is capable of complying with recommendations made by
the mediator relative to the complaint, but the owner does not permit
the contractor to comply with the recommendations.
(5) Upon acceptance of the complaint, the board shall assign a
mediator to the complaint in the form and manner prescribed under
section 7 of this act.
(6) The mediator shall initiate proceedings to determine the
validity of the complaint.
(7) At a minimum, the mediator shall conduct one or more on-site
meetings to mediate or investigate the complaint.
(8) All proceedings of the mediation, including any statement made
by any party or other participant, must be privileged and not reported,
recorded, or placed in evidence, used for any impeachment, made known
to a court or jury, or construed for any purposes as an admission. A
party is not bound by anything done or said at the mediation unless
settlement is reached, in which event the agreement upon a settlement
must be reduced to writing and is binding upon all parties to that
agreement.
(9) If the mediator is unable to resolve the complaint under this
section, the mediator shall issue a written notice to the board, which
must be forwarded by the board to the owner and contractor. Unless a
homeowner or contractor requests an advisory decision from the board,
notice of the mediator's decision is considered a final notice.
(10) If the mediator is able to resolve the complaint, the mediator
shall deliver the written and signed settlement to the board. The
board shall forward the written and signed settlement to the owner and
contractor. The written and signed settlement is considered a final
notice.
(11) A mediated resolution of a residential construction complaint
resulting in a written and signed settlement may be enforced in any
superior court with jurisdiction.
(12) If a residential construction board complaint is not resolved
by mediation or agreement of the owner and contractor, the complaint
may be brought to the board for an advisory decision. The complaint
must be presented to the board in a form and manner prescribed by the
board. The board, upon hearing the complaint, shall issue an advisory
decision intended to assist the parties in their further negotiation of
the complaint and attempt to reach settlement. This advisory decision
is considered a final notice. Proceedings before the board, including
any statement made by any party or other participant, must be
privileged and not reported, recorded, or placed in evidence, used for
any impeachment, made known to a court or jury, or construed for any
purposes as an admission. A party is not bound by anything done or
said at the board proceeding.
NEW SECTION. Sec. 12 Notwithstanding the provisions of chapter
7.06 RCW, any other provision of law, or any contractual provision,
failure of a contractor to initiate mediation proceedings within thirty
days after notification by the board of a complaint under section 11 of
this act is a waiver by the contractor of any contractual right to
mediation or arbitration.
NEW SECTION. Sec. 13 (1) Within twenty days after final notice
of the board's decision, the owner or the contractor may reject the
decision by delivering written notice of the rejection to the board.
The board shall forward written notice of the rejection to the owner
and the contractor within five days of receiving the rejection of the
decision.
(2) Upon receipt of written notice of rejection of the board's
decision, an owner pursuing a claim under an implied warranty of
habitability may file with the clerk of a superior court with
jurisdiction a written notice of request for a trial de novo on all
issues of law and fact. The trial de novo must be held, including a
right to jury, if demanded. Any owner pursuing a claim under an
express written warranty may file the claim in the form and manner
prescribed by the warranty contract.
Sec. 14 RCW 18.27.075 and 2001 c 159 s 14 are each amended to
read as follows:
(1) The department shall charge a fee of one hundred dollars for
issuing or renewing a certificate of registration during the 2001-2003
biennium. The department shall revise this amount at least once every
two years for the purpose of recognizing economic changes as reflected
by the fiscal growth factor under chapter 43.135 RCW.
(2) The department shall also charge a consumer education fee of
one hundred dollars per year for issuing or renewing a certificate of
registration to a contractor who discloses, as required under RCW
18.27.030, that he or she will perform both residential and commercial
work or only residential work. A contractor who discloses that he or
she will perform only commercial work is not required to pay the fee.
The department shall deposit the fee in the consumer education for home
construction account created in section 15 of this act.
NEW SECTION. Sec. 15 A new section is added to chapter 43.10 RCW
to read as follows:
The consumer education for home construction account is created in
the custody of the state treasurer for the purpose of funding the
consumer education office created under section 5 of this act. All
fees charged under RCW 18.27.075(2) must be deposited into the account.
Expenditures from the account may be used only to fund the office of
consumer education for home construction. Only the residential
construction board created under section 4 of this act or the board's
designee may authorize expenditures from the account. The account is
subject to the allotment procedures under chapter 43.88 RCW, but an
appropriation is not required for expenditures.
Sec. 16 RCW 43.79A.040 and 2009 c 87 s 4 are each amended to read
as follows:
(1) Money in the treasurer's trust fund may be deposited, invested,
and reinvested by the state treasurer in accordance with RCW 43.84.080
in the same manner and to the same extent as if the money were in the
state treasury.
(2) All income received from investment of the treasurer's trust
fund shall be set aside in an account in the treasury trust fund to be
known as the investment income account.
(3) The investment income account may be utilized for the payment
of purchased banking services on behalf of treasurer's trust funds
including, but not limited to, depository, safekeeping, and
disbursement functions for the state treasurer or affected state
agencies. The investment income account is subject in all respects to
chapter 43.88 RCW, but no appropriation is required for payments to
financial institutions. Payments shall occur prior to distribution of
earnings set forth in subsection (4) of this section.
(4)(a) Monthly, the state treasurer shall distribute the earnings
credited to the investment income account to the state general fund
except under (b) and (c) of this subsection.
(b) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's or fund's
average daily balance for the period: The Washington promise
scholarship account, the college savings program account, the
Washington advanced college tuition payment program account, the
agricultural local fund, the American Indian scholarship endowment
fund, the foster care scholarship endowment fund, the foster care
endowed scholarship trust fund, the students with dependents grant
account, the basic health plan self-insurance reserve account, the
contract harvesting revolving account, the Washington state combined
fund drive account, the commemorative works account, the Washington
international exchange scholarship endowment fund, the toll collection
account, the developmental disabilities endowment trust fund, the
energy account, the fair fund, the family leave insurance account, the
food animal veterinarian conditional scholarship account, the fruit and
vegetable inspection account, the future teachers conditional
scholarship account, the game farm alternative account, the GET ready
for math and science scholarship account, the grain inspection
revolving fund, the juvenile accountability incentive account, the law
enforcement officers' and firefighters' plan 2 expense fund, the local
tourism promotion account, the pilotage account, the produce railcar
pool account, the regional transportation investment district account,
the rural rehabilitation account, the stadium and exhibition center
account, the youth athletic facility account, the self-insurance
revolving fund, the sulfur dioxide abatement account, the children's
trust fund, the Washington horse racing commission Washington bred
owners' bonus fund and breeder awards account, the Washington horse
racing commission class C purse fund account, the individual
development account program account, the Washington horse racing
commission operating account (earnings from the Washington horse racing
commission operating account must be credited to the Washington horse
racing commission class C purse fund account), the life sciences
discovery fund, the Washington state heritage center account, the
reduced cigarette ignition propensity account, the consumer education
for home construction account, and the reading achievement account.
However, the earnings to be distributed shall first be reduced by the
allocation to the state treasurer's service fund pursuant to RCW
43.08.190.
(c) The following accounts and funds shall receive eighty percent
of their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The advanced right-of-way
revolving fund, the advanced environmental mitigation revolving
account, the city and county advance right-of-way revolving fund, the
federal narcotics asset forfeitures account, the high occupancy vehicle
account, the local rail service assistance account, and the
miscellaneous transportation programs account.
(5) In conformance with Article II, section 37 of the state
Constitution, no trust accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
NEW SECTION. Sec. 17 (1) Except as provided in subsection (2) or
(3) of this section, the implied warranty of habitability may not be
contractually disclaimed, waived, modified, or limited. The implied
warranty of habitability transfers from the homeowner to subsequent
purchasers. Subsequent purchasers of a residence may bring an action
for breach of implied warranty of habitability.
(2) The implied warranty of habitability may be disclaimed or
waived if the contractor or seller provides to the homeowner a
transferable written express warranty at the time of closing that has
been accepted by the United States department of housing and urban
development under 24 CFR Sec. 203.202 through 202.209, as now or
hereafter amended.
(3) The implied warranty of habitability may be disclaimed or
limited, provided that the contractor can disclaim or limit implied
warranty coverage only for failures or deficiencies of specifically
listed materials or design features of the construction that were
selected or specified by the owner.
(4) A disclaimer, waiver, modification, or limitation of an implied
warranty of habitability under subsection (2) or (3) of this section
must be:
(a) Written;
(b) Conspicuous;
(c) Typed or printed in ten-point bold face type; and
(d) Signed by the homeowner.
(5) A contractor must provide notice of the warranty that will be
provided to the owner. The notice must contain a list of the potential
legal remedies for an owner dissatisfied with the construction of the
home including, but not limited to, breach of contract, fraud, breach
of express or implied warranties, and violation of chapter 19.86 RCW.
The contractor is only required to provide notice to an owner if there
is privity of contract between the owner and the contractor. This
notice must be:
(a) Written;
(b) Provided five days prior to closing or five days prior to
entering into a contract for construction of a new home or construction
of a substantial remodel; and
(c) Signed by both the contractor and the owner at or prior to
closing or entering into the contract for construction of a new home or
construction of a substantial remodel.
(6) Damages awarded for a breach of the implied warranty of
habitability are the cost of repairs. However, if it is established
that the cost of repairs is clearly disproportionate to the loss in
market value caused by the breach, damages are limited to the loss in
market value.
(7) This section does not apply to condominium units created under
chapter 64.32 or 64.34 RCW.
NEW SECTION. Sec. 18 Any person applying for a building permit
for construction or substantial remodel of residential real property
shall ensure that an inspection of the property is completed by a
contractor with expertise in the trade. This inspection may be
conducted by a third party or it may be a self-inspection by a
contractor. The inspection must occur after the installation of
roofing and waterproofing and prior to the installation of siding.
This inspection must:
(1) Determine that waterproofing has been installed over all
plywood or exterior surfaces;
(2) Determine that waterproofing has been installed around doors,
windows, vents, pipes, and exterior fixtures; and
(3) Document the installation of waterproofing by providing, at a
minimum, one photograph or digital image of each of the elevations of
the residential real property.
NEW SECTION. Sec. 19 Sections 3 through 13, 17, and 18 of this
act are each added to chapter
NEW SECTION. Sec. 20 Sections 3 through 13, 17, and 18 of this
act take effect April 1, 2011."
SB 6701 -
By Senator Haugen
On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "improving residential real property construction by establishing notice requirements, creating a residential construction board and consumer education office, strengthening warranty protections applicable to residential real property construction, and requiring inspections; amending RCW 64.50.010, 64.50.020, 18.27.075, and 43.79A.040; adding new sections to chapter 64.50 RCW; adding a new section to chapter 43.10 RCW; and providing an effective date."