S-3037.1

1363-S.E AMS GO S3037.1

ESHB 1363 - S COMM AMD

By Committee on Government Operations

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 36.21.080 and 1989 c 246 s 4 are each amended to read as follows:

(1) The county assessor is authorized to place any property that is increased in value due to construction or alteration for which a building permit was issued, or should have been issued, under chapter 19.27, 19.27A, or 19.28 RCW or other laws providing for building permits on the assessment rolls for the purposes of tax levy up to August 31st of each year. The assessed valuation of the property shall be considered as of July 31st of that year.

(2) In conducting a physical appraisal under RCW 36.21.070 or subsection (1) of this section, the county assessor shall notify the local building official of any increase in the size of the building, and any other significant modifications that are apparent from an exterior inspection of the building, since the last physical appraisal.

NEW SECTION. Sec. 2. A new section is added to chapter 19.27 RCW to read as follows:

A copy of any verification of final inspection issued upon completion of construction or alteration work on a single or multifamily residential building shall be transmitted by the issuing authority to the county auditor of the county where the property on which the construction or alteration work is located to be recorded in the real property records. The issuing authority shall collect the fees authorized by RCW 36.18.010 for filing and recording a verification of final inspection, and transmit the fee and verification of final inspection to the county auditor. The issuing authority may collect a reasonable fee to cover the cost of transmitting the verification of final inspection to the county auditor. The verification of final inspection shall contain the county assessor's parcel number and the legal description of the property.

NEW SECTION. Sec. 3. A new section is added to chapter 48.29 RCW to read as follows:

The existence of verifications of final inspection that are recorded pursuant to section 2 of this act shall be disclosed as an attachment to every title insurance report provided to the purchasers of real property. Nothing in this section requires a title insurer to include such verifications within the coverage provided under a title insurance contract.

NEW SECTION. Sec. 4. The legislature finds that the purchase of residential real property is often the single largest transaction made by an individual and that many purchasers do not have the experience necessary to discover significant problems which may not otherwise become apparent until the sale is completed.

NEW SECTION. Sec. 5. This chapter applies to all transfers of residential real property except transfers:

(1) That involve a multiple housing structure with more than four living units;

(2) Made to provide collateral for a loan of money, if the transferee does not receive the right to immediate possession of the property;

(3) Made as a distribution to an heir of a decedent's estate;

(4) Made under a court order, including, but not limited to, transfers under a writ of execution, transfers by a trustee in bankruptcy, transfers by eminent domain, transfers resulting from a decree of specific performance, or transfers resulting from a quiet title action;

(5) Made as a property settlement in a marriage dissolution;

(6) Made in a legal foreclosure or tax sale;

(7) Made to a person other than an individual or individuals;

(8) Made to a co-owner; or

(9) Made to a spouse, or to a person in the lineal line of consanguinity of one or more of the transferors.

NEW SECTION. Sec. 6. (1) Whenever an owner of residential real property offers the property for sale, the owner, at the earliest time practicable, shall disclose in writing to a prospective purchaser, to the best of his or her knowledge, the following information:

(a) If the property is served by a septic system:

(i) The location of the septic tank and drain field;

(ii) When the tank was last pumped; and

(iii) Whether a permit was issued for the septic system construction and whether it was approved by the city or county following its construction;

(b) Whether or not required building and occupancy permits have been issued for any structures on the property; and

(c) Whether or not property lines have been surveyed, the location of the corners of the property and whether there are any encroachments on the property.

(2) For purposes of this section, the "earliest time practicable" means:

(a) When the property is listed with a licensed real estate agent, the information required to be disclosed shall be prepared at the time the listing agreement is signed and shall be delivered to all prospective purchasers during the term of the listing agreement; or

(b) When the property is not listed with a licensed real estate agent, the information required to be disclosed shall be prepared and delivered to a prospective purchaser at the time the prospective purchaser first makes known to the owner an interest in purchasing the property.

(3) The disclosures required by subsection (1) of this section may be incorporated in a general disclosure form adopted for use by real estate brokers and agents.

(4) Delivery of disclosures required by this chapter shall be by personal delivery or mail to the prospective purchaser.

NEW SECTION. Sec. 7. (1) Prior to the closing of a real estate sale subject to this chapter, and until the required disclosures have been delivered to a prospective purchaser and for five days following receipt of all of the required disclosures, the purchaser may rescind any agreement to purchase the property and recover, in full, any deposits or earnest money paid, notwithstanding the provisions of any agreement regarding the disposition of the deposits or earnest money.

(2) Following the closing of a real estate sale subject to this chapter, if the required disclosures were not delivered to the purchaser at least six days prior to the closing, the person responsible for making the disclosures is liable to the purchaser in the amount of actual damages suffered by the purchaser resulting from the failure to make the required disclosures. If a seller required to make disclosures under section 6 of this act has failed to obtain any required building or occupancy permit for any improvements included in the sale, any damages to which the buyer is entitled may be trebled.

NEW SECTION. Sec. 8. The specification of items for disclosure in this chapter does not limit or abridge any obligation for disclosure created by any other provision of law that may exist in order to avoid fraud, misrepresentation, or deceit in the transfer transaction.

NEW SECTION. Sec. 9. Sections 4 through 8 of this act shall constitute a new chapter in Title 64 RCW."

ESHB 1363 - S COMM AMD

By Committee on Government Operations

On page 1, line 1 of the title, after "verification;" strike the remainder of the title and insert "amending RCW 36.21.080; adding a new section to chapter 19.27 RCW; adding a new section to chapter 48.29 RCW; and adding a new chapter to Title 64 RCW."