Z-0234.1  _______________________________________________

                          HOUSE BILL 1233

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Edmonds, Sheahan and Constantine

Read first time 01/19/1999.  Referred to Committee on Judiciary.

Determining the net value of a homestead exemption.

    AN ACT Relating to the net value of a homestead exemption; and amending RCW 6.13.010, 6.13.150, and 6.13.160.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 6.13.010 and 1993 c 200 s 1 are each amended to read as follows:

    (1) The homestead consists of real or personal property that the owner uses as a residence.  In the case of a dwelling house or mobile home, the homestead consists of the dwelling house or the mobile home in which the owner resides or intends to reside, with appurtenant buildings, and the land on which the same are situated and by which the same are surrounded, or improved or unimproved land owned with the intention of placing a house or mobile home thereon and residing thereon.  A mobile home may be exempted under this chapter whether or not it is permanently affixed to the underlying land and whether or not the mobile home is placed upon a lot owned by the mobile home owner.  Property included in the homestead must be actually intended or used as the principal home for the owner.

    (2) As used in this chapter, the term "owner" includes but is not limited to a purchaser under a deed of trust, mortgage, or real estate contract.

    (3) As used in this chapter, the term "net value" means market value less all liens and encumbrances prior in time to the judgment being executed upon and not including the judgment being executed upon.

    Sec. 2.  RCW 6.13.150 and 1987 c 442 s 215 are each amended to read as follows:

    If, from the report, it appears to the court that the value of the homestead, less liens and encumbrances prior in time to the judgment being executed upon and not including the judgment being executed upon, exceeds the homestead exemption and the property can be divided without material injury and without violation of any governmental restriction, the court may, by an order, direct the appraiser to set off to the owner so much of the land, including the residence, as will amount in net value to the homestead exemption, and the execution may be enforced against the remainder of the land.

    Sec. 3.  RCW 6.13.160 and 1987 c 442 s 216 are each amended to read as follows:

    If, from the report, it appears to the court that the appraised value of the homestead property, less liens and encumbrances prior in time to the judgment being executed upon and not including the judgment being executed upon, exceeds the amount of the homestead exemption and the property is not divided, the court must make an order directing its sale under the execution.  The order shall direct that at such sale no bid may be received unless it exceeds the amount of the homestead exemption.

                            --- END ---