HOUSE BILL NO. 1656
AS AMENDED BY THE SENATE
C 428 L 89 PV
State of Washington 51st Legislature 1989 Regular Session
By Representative Crane
Read first time 2/1/89 and referred to Committee on Judiciary.
AN ACT Relating to the regulation of the sale of lands; creating new sections; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. PUBLIC OFFERING STATEMENT‑-CONDOMINIUM SECURITIES. If an interest in a condominium is currently registered with the securities and exchange commission of the United States, a declarant satisfies all requirements relating to the preparation of a public offering statement of this chapter if the declarant delivers to the purchaser a copy of the public offering statement filed with the securities and exchange commission. An interest in a condominium is not a security under the provisions of chapter 21.20 RCW.
NEW SECTION. Sec. 2. EXPRESS WARRANTIES OF QUALITY. (1) Express warranties made by any seller to a purchaser of a unit, if relied upon by the purchaser, are created as follows:
(a) Any written affirmation of fact or promise which relates to the unit, its use, or rights appurtenant thereto, area improvements to the condominium that would directly benefit the unit, or the right to use or have the benefit of facilities not located in the condominium creates an express warranty that the unit and related rights and uses will conform to the affirmation or promise;
(b) Any model or written description of the physical characteristics of the condominium at the time the purchase agreement is executed, including plans and specifications of or for improvements, creates an express warranty that the condominium will conform to the model or description except pursuant to RCW 64.__.___ (section 4-103(1)(v), chapter 43, Laws of 1989);
(c) Any written description of the quantity or extent of the real property comprising the condominium, including plats or surveys, creates an express warranty that the condominium will conform to the description, subject to customary tolerances; and
(d) A written provision that a buyer may put a unit only to a specified use is an express warranty that the specified use is lawful.
(2) Neither formal words, such as "warranty" or "guarantee," nor a specific intention to make a warranty are necessary to create an express warranty of quality, but a statement purporting to be merely an opinion or commendation of the real estate or its value does not create a warranty. A purchaser may not rely on any representation or express warranty unless it is contained in the public offering statement or made in writing signed by the declarant or declarant's agent identified in the public offering statement.
(3) Any conveyance of a unit transfers to the purchaser all express warranties of quality made by previous sellers.
NEW SECTION. Sec. 3. STATUTE OF LIMITATIONS FOR WARRANTIES. (1) A judicial proceeding for breach of any obligation arising under RCW 64.__.___ or 64.__.___ (section 4-111 or 4-112, chapter 43, Laws of 1989) must be commenced within four years after the cause of action accrues.
(2) Subject to subsection (3) of this section, a cause of action for breach of warranty of quality, regardless of the purchaser's lack of knowledge of the breach, accrues:
(a) As to a unit, at the time the purchaser to whom the warranty is first made enters into possession if a possessory interest was conveyed or at the time of acceptance of the instrument of conveyance if a nonpossessory interest was conveyed; and
(b) As to each common element, at the time the common element is completed or, if later: (i) As to a common element that may be added to the condominium or portion thereof, at the time the first unit therein is conveyed to a bona fide purchaser; or (ii) as to a common element within any other portion of the condominium, at the time the first unit in the condominium is conveyed to a bona fide purchaser.
(3) If a warranty of quality explicitly extends to future performance or duration of any improvement or component of the condominium, the cause of action accrues at the time the breach is discovered or at the end of the period for which the warranty explicitly extends, whichever is earlier.
NEW SECTION. Sec. 4. SUBSTANTIAL COMPLETION OF UNITS. In the case of a sale of a unit where delivery of a public offering statement is required, a contract of sale may be executed, but no interest in that unit may be conveyed until the declaration is recorded.
NEW SECTION. Sec. 5. STUDY COMMITTEE. A statutory committee is created to:
(1) Review the Washington condominium act, and consider comments concerning the act;
(2) Draft recommended revisions to the act; and
(3) Prepare written comments on the act to be included in the Senate or House Journals. The committee shall consist of the following members:
(a) One member each of the majority and minority parties of the senate, appointed by the president of the senate;
(b) One member each of the majority and minority parties of the house of representatives, appointed by the speaker of the house of representatives;
(c) Four members of the drafting subcommittee of the senate judiciary condominium task force;
(d) One member appointed by the Washington land title association;
(e) One member appointed by the Washington mortgage bankers association;
(f) One member appointed by the Washington association of realtors;
(g) One member appointed by the Washington chapter of the community associations institute;
(h) One member appointed by the homebuilders association of Washington state;
(i) One member appointed by the Washington state bar association;
(j) One member appointed by the Washington association of county officials; and
(k) Two members appointed by the governor.
The committee shall report to the senate law and justice committee and the house judiciary committee before March 1, 1990.
This section shall expire March 1, 1990.
NEW SECTION. Sec. 6. CAPTIONS. Section captions as used in this act do not constitute any part of the law.
NEW SECTION. Sec. 7. EFFECTIVE DATE. Sections 1 through 4 of this act shall take effect July 1, 1990.