H-4135.1 _______________________________________________
HOUSE BILL 2872
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State of Washington 56th Legislature 2000 Regular Session
By Representatives DeBolt, Alexander, Benson and Hatfield
Read first time 01/21/2000. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to escrows on the sale of manufactured homes; adding a new section to chapter 46.70 RCW; creating a new section; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that housing is a fundamental need of Washington residents and manufactured homes are the housing choice for a significant number of state residents, often being their largest asset. The legislature also finds that problems with the sale of a manufactured home may cause extreme hardship on purchasers of a manufactured home. These problems may be the result of, among other things, a lack of information or knowledge on the part of the purchaser, mistakes by the seller, and, occasionally, fraud or improper business practices on the part of the seller. These issues are complicated by the fact that manufactured homes are titled as vehicles unless they are converted to real property under chapter 65.20 RCW. The legislature intends to protect purchasers of manufactured homes by requiring a more formal process for closing the transfer of ownership of a manufactured home at the time of sale.
NEW SECTION. Sec. 2. A new section is added to chapter 46.70 RCW to read as follows:
(1) Any sale of a manufactured home whose title has not been eliminated under chapter 65.20 RCW prior to the sale shall be closed in escrow as provided in this section. In addition to the standard escrow functions, the escrow shall provide the purchaser with the notice under subsection (2) of this section and require the purchaser to acknowledge receipt of this notice.
(2) The department of licensing, in consultation with the attorney general and the department of financial institutions, shall design a form for use in the escrow that closes the sale of a manufactured home that provides the purchaser of a manufactured home consumer protection information regarding the purchase of the manufactured home, including: (a) A summary of the rights of the consumer regarding warranties and installation protections under this chapter; and
(b) Examples of improper sales activities such as: (i) Secret side agreements; (ii) delivering a different home than the one purchased and pressuring the purchaser to accept the delivered home; and (iii) providing the seller with a power of attorney.
(3) An escrow may be done under this section by a person licensed to practice law in this state doing escrows as part of his or her profession, an escrow agent under chapter 18.44 RCW, or a title company under chapter 48.29 RCW.
(4) For purposes of this section, "escrow" means the same as defined in RCW 18.44.011.
(5) When the seller is a dealer, funds shall not be disbursed to the dealer until the terms of the sale have been satisfied, including delivery of the manufactured home.
(6) The department of licensing may adopt rules necessary to implement this section.
NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.
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