CERTIFICATION OF ENROLLMENT
ENGROSSED SUBSTITUTE SENATE BILL 5024
67TH LEGISLATURE
2021 REGULAR SESSION
Passed by the Senate April 15, 2021
  Yeas 48  Nays 0
President of the Senate
Passed by the House April 8, 2021
  Yeas 97  Nays 0
Speaker of the House of Representatives
CERTIFICATE
I, Brad Hendrickson, Secretary of the Senate of the State of Washington, do hereby certify that the attached is ENGROSSED SUBSTITUTE SENATE BILL 5024 as passed by the Senate and the House of Representatives on the dates hereon set forth.
Secretary
Secretary
Approved
FILED
Secretary of State
State of Washington
ENGROSSED SUBSTITUTE SENATE BILL 5024
AS AMENDED BY THE HOUSE
Passed Legislature - 2021 Regular Session
State of Washington
67th Legislature
2021 Regular Session
BySenate Law & Justice (originally sponsored by Senators Padden, Pedersen, Brown, Gildon, Holy, Mullet, Short, and Van De Wege)
READ FIRST TIME 01/15/21.
AN ACT Relating to reducing barriers to condominium construction; and amending RCW 64.55.040 and 64.90.645.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 64.55.040 and 2005 c 456 s 5 are each amended to read as follows:
(1) A qualified building enclosure inspector:
(a) Must be ((a))the architect or engineer of record or another person with substantial and verifiable training and experience in building enclosure design and construction;
(b) Shall be free from improper interference or influence relating to the inspections; and
(c) May not be an employee, officer, or director of, nor have any pecuniary interest in, the declarant, developer, association, or any party providing services or materials for the project, or any of their respective affiliates, except that the qualified inspector may be the architect or engineer who approved the building enclosure design documents or the architect or engineer of record. The qualified inspector may, but is not required to, assist with the preparation of such design documents.
(2) Nothing in this section alters requirements for licensure of any architect, engineer, or other professional, or alters the jurisdiction, authority, or scope of practice of architects, engineers, other professionals, or general contractors.
Sec. 2. RCW 64.90.645 and 2018 c 277 s 410 are each amended to read as follows:
((Any earnest money deposit, as defined in RCW 64.04.005, or any reservation))(1) Except as provided in subsection (2) of this section, any deposit made in connection with the right to purchase a unit from a person required to deliver a public offering statement pursuant to RCW 64.90.605(3) must be placed in escrow and held in this state in an escrow or trust account designated solely for that purpose by a licensed title insurance company or agent, a licensed attorney, a real estate broker or independent bonded escrow company, or an institution whose accounts are insured by a governmental agency or instrumentality until: (((1)))(a) Delivered to the declarant at closing, (((2)))(b) delivered to the declarant because of the purchaser's default under a contract to purchase the unit, (((3)))(c) refunded to the purchaser, or (((4)))(d) delivered to a court in connection with the filing of an interpleader action.
(2)(a) If a purchase agreement for the sale of a unit provides that deposit funds may be used for construction costs and the declarant obtains and maintains a surety bond as required by this section, the declarant may withdraw escrow funds when construction of improvements has begun. The funds may be used only for actual building and construction costs of the project in which the unit is located.
(b) The bond must be issued by a surety insurer licensed in this state in favor of the purchaser in an amount adequate to cover the amount of the deposit to be withdrawn. The declarant may not withdraw more than the face amount of the bond. The bond must be payable to the purchaser if the purchaser obtains a final judgment against the declarant requiring the declarant to return the deposit pursuant to the purchase agreement. The bond may be either in the form of an individual bond for each deposit accepted by the declarant or in the form of a blanket bond assuring the return of all deposits received by the declarant.
(c) The party holding escrow funds who releases all or any portion of the funds to the declarant has no obligation to monitor the progress of construction or the expenditure of the funds by the declarant and is not liable to any purchaser for the release of funds pursuant to this section.
(3) A deposit under this section may not exceed five percent of the purchase price.
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