SB 5796 — Concerning common interest communities.

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12 SB 5796 (k) Brief descriptions of (i) the existing principal common amenities, (ii) those amenities that will be added to the common interest community, and (iii) those amenities that may be added to the common interest community;

(l) A brief description of the limited common elements, other than those described in RCW 64.90.210 (1)(b) and (3), that may be allocated to the units being offered for sale;

(m) The identification of any rights of persons other than unit owners to use any of the common elements, and a description of the terms of such use;

(n) The identification of any real property not in the common interest community that unit owners have a right to use and a description of the terms of such use;

(o) Any services the declarant provides or expenses that the declarant pays that are not reflected in the budget, but that the declarant expects may become at any subsequent time a common expense of the association, and the projected common expense attributable to each of those services or expenses;

(p) An estimate of any assessment or payment required by the declaration to be paid by the purchaser of a unit at closing;

(q) A brief description of any liens or monetary encumbrances on the title to the common elements that will not be discharged at closing;

(r) A brief description or a copy of any express construction warranties to be provided to the purchaser;

(s) A statement, as required under RCW 64.35.210, as to whether the units or common elements of the common interest community are covered by a qualified warranty;

(t) If applicable to the common interest community, a statement whether the common interest community contains any multiunit residential building subject to chapter 64.55 RCW and, if so, whether:

(i) The building enclosure has been designed and inspected to the extent required under RCW 64.55.010 through 64.55.090;

and (ii) Any repairs required under RCW 64.55.090 have been made;

(u) A statement of any unsatisfied judgments or pending suits against the association and the status of any pending suits material to the common interest community of which the declarant has actual knowledge;

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13 SB 5796 (v) A statement of any litigation brought by an owners' association, unit owner, or governmental entity in which the declarant or any affiliate of the declarant has been a defendant arising out of the construction, sale, or administration of any common interest community within the previous five years, together with the results of the litigation, if known;

(w) A brief description of:

(i) Any restrictions on use or occupancy of the units contained in the governing documents;

(ii) Any restrictions on the renting or leasing of units by the declarant or other unit owners contained in the governing documents;

(iii) Any rights of first refusal to lease or purchase any unit or any of the common elements contained in the governing documents;

and (iv) Any restriction on the amount for which a unit may be sold or on the amount that may be received by a unit owner on sale;

(x) A description of the insurance coverage provided for the benefit of unit owners;

(y) Any current or expected fees or charges not included in the common expenses to be paid by unit owners for the use of the common elements and other facilities related to the common interest community, together with any fees or charges not included in the common expenses to be paid by unit owners to any master or other association;

(z) The extent, if any, to which bonds or other assurances from third parties have been provided for completion of all improvements that the declarant is obligated to build pursuant to RCW 64.90.695;

(aa) In a cooperative, a statement whether the unit owners are entitled, for federal, state, and local income tax purposes, to a pass-through of any deductions for payments made by the association for real estate taxes and interest paid to the holder of a security interest encumbering the cooperative;

(bb) In a cooperative, a statement as to the effect on every unit owner's interest in the cooperative if the association fails to pay real estate taxes or payments due to the holder of a security interest encumbering the cooperative;

(cc) In a leasehold common interest community, a statement whether the expiration or termination of any lease may terminate the common interest community or reduce its size, the recording number of any such lease or a statement of where the complete lease may be p.

14 SB 5796 inspected, the date on which such lease is scheduled to expire, a description of the real estate subject to such lease, a statement whether the unit owners have a right to redeem the reversion, a statement whether the unit owners have a right to remove any improvements at the expiration or termination of such lease, a statement of any rights of the unit owners to renew such lease, and a reference to the sections of the declaration where such information may be found;

(dd) A summary of, and information on how to obtain a full copy of, any reserve study and a statement as to whether or not it was prepared in accordance with RCW 64.90.545 and 64.90.550 or the governing documents;

(ee) A brief description of any arrangement described in RCW 64.90.110 binding the association;

(ff) The estimated current common expense liability for the units being offered;

(gg) Except for real property taxes, real property assessments and utility liens, any assessments, fees, or other charges known to the declarant and which, if not paid, may constitute a lien against any unit or common elements in favor of any governmental agency;

(hh) A brief description of any parts of the common interest community, other than the owner's unit, which any owner must maintain;

(ii) Whether timesharing is permitted or prohibited, and, if permitted, a statement that the purchaser of a timeshare unit is entitled to receive the disclosure document required under chapter 64.36 RCW;

(jj) If the common interest community is subject to any special declarant rights, the information required under RCW 64.90.615;

(kk) Any liens on real estate to be conveyed to the association required to be disclosed pursuant to RCW 64.90.650(3)(b);

(ll) A list of any physical hazards known to the declarant that particularly affect the common interest community or the immediate vicinity in which the common interest community is located and which are not readily ascertainable by the purchaser;

(mm) Any building code violation of which the declarant has actual knowledge and which has not been corrected;

(nn) If the common interest community contains one or more conversion buildings, the information required under RCW 64.90.620 and 64.90.655(6)(a);

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15 SB 5796 (oo) If the public offering statement is related to conveyance of a unit in a multiunit residential building as defined in RCW 64.55.010, for which the final certificate of occupancy was issued more than ((sixty)) 60 calendar months prior to the preparation of the public offering statement either:

A copy of a report prepared by an independent, licensed architect or engineer or a statement by the declarant based on such report that describes, to the extent reasonably ascertainable, the present condition of all structural components and mechanical and electrical installations of the conversion buildings material to the use and enjoyment of the conversion buildings;

(pp) Any other information and cross-references that the declarant believes will be helpful in describing the common interest community to the recipients of the public offering statement, all of which may be included or not included at the option of the declarant;

((and)) (qq) A description of any age-related occupancy restrictions affecting the common interest community;

and (rr) In a condominium, plat community, or miscellaneous community containing a unit not having horizontal boundaries described in the declaration, a statement whether the unit may be sold without consent of all the unit owners after termination of the common interest community under RCW 64.90.290.

(2) The public offering statement must begin with notices substantially in the following forms and in conspicuous type:

(a) "RIGHT TO CANCEL.

(1) You are entitled to receive a copy of this public offering statement and all material amendments to this public offering statement before conveyance of your unit.

Under RCW 64.90.635, you have the right to cancel your contract for the purchase of your unit within seven days after first receiving this public offering statement.

If this public offering statement is first provided to you more than seven days before you sign your contract for the purchase of your unit, you have no right to cancel your contract.

If this public offering statement is first provided to you seven days or less before you sign your contract for the purchase of your unit, you have the right to cancel, before conveyance of the unit, the executed contract by delivering, no later than the seventh day after first receiving this public offering statement, a notice of cancellation pursuant to section (3) of this notice.

If this public offering statement is first provided to you less than seven days p.

16 SB 5796 before the closing date for the conveyance of your unit, you may, before conveyance of your unit to you, extend the closing date to a date not more than seven days after you first received this public offering statement, so that you may have seven days to cancel your contract for the purchase of your unit.

(2) You have no right to cancel your contract upon receipt of an amendment to this public offering statement;

however, this does not eliminate any right to rescind your contract, due to the disclosure of the information in the amendment, that is otherwise available to you under generally applicable contract law.

(3) If you elect to cancel your contract pursuant to this notice, you may do so by hand-delivering notice of cancellation, or by mailing notice of cancellation by prepaid United States mail, to the seller at the address set forth in this public offering statement or at the address of the seller's registered agent for service of process.

The date of such notice is the date of receipt, if hand- delivered, or the date of deposit in the United States mail, if mailed.

Cancellation is without penalty, and all payments made to the seller by you before cancellation must be refunded promptly." (b) "OTHER DOCUMENTS CREATING BINDING LEGAL OBLIGATIONS.

This public offering statement is a summary of some of the significant aspects of purchasing a unit in this common interest community.

The governing documents and the purchase agreement are complex, contain other important information, and create binding legal obligations.

You should consider seeking the assistance of legal counsel." (c) "OTHER REPRESENTATIONS.

You may not rely on any statement, promise, model, depiction, or description unless it is (1) contained in the public offering statement delivered to you or (2) made in writing signed by the declarant or dealer or the declarant's or dealer's agent identified in the public offering statement.

A statement of opinion, or a commendation of the real estate, its quality, or its value, does not create a warranty, and a statement, promise, model, depiction, or description does not create a warranty if it discloses that it is only proposed, is not representative, or is subject to change." (d) "MODEL UNITS.

Model units are intended to provide you with a general idea of what a finished unit might look like.

Units being offered for sale may vary from the model unit in terms of floor plan, fixtures, finishes, and equipment.

You are advised to obtain specific information about the unit you are considering purchasing." p.

17 SB 5796 (e) "RESERVE STUDY.

The association [does] [does not] have a current reserve study.

Any reserve study should be reviewed carefully.

It may not include all reserve components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement.

You may encounter certain risks, including being required to pay as a special assessment your share of expenses for the cost of major maintenance, repair, or replacement of a reserve component, as a result of the failure to:

(1) Have a current reserve study or fully funded reserves, (2) include a component in a reserve study, or (3) provide any or sufficient contributions to a reserve account for a component." (f) "DEPOSITS AND PAYMENTS.

Only earnest money and reservation deposits are required to be placed in an escrow or trust account.

Any other payments you make to the seller of a unit are at risk and may be lost if the seller defaults." (g) "CONSTRUCTION DEFECT CLAIMS.

Chapter 64.50 RCW contains important requirements you must follow before you may file a lawsuit for defective construction against the seller or builder of your home.

Forty-five days before you file your lawsuit, you must deliver to the seller or builder a written notice of any construction conditions you allege are defective and provide your seller or builder the opportunity to make an offer to repair or pay for the defects.

You are not obligated to accept any offer made by the builder or seller.

There are strict deadlines and procedures under state law, and failure to follow them may affect your ability to file a lawsuit." (h) "ASSOCIATION INSURANCE.

The extent to which association insurance provides coverage for the benefit of unit owners (including furnishings, fixtures, and equipment in a unit) is determined by the provisions of the declaration and the association's insurance policy, which may be modified from time to time.

You and your personal insurance agent should read the declaration and the association's policy prior to closing to determine what insurance is required of the association and unit owners, unit owners' rights and duties, what is and is not covered by the association's policy, and what additional insurance you should obtain." (i) "QUALIFIED WARRANTY.

Your unit [is] [is not] covered by a qualified warranty under chapter 64.35 RCW.

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18 SB 5796 (3) The public offering statement must include copies of each of the following documents:

The declaration;

the map;

the organizational documents;

the rules, if any;

the current or proposed budget for the association;

a dated balance sheet of the association;

any inspection and repair report or reports prepared in accordance with the requirements of RCW 64.55.090;

and any qualified warranty provided to a purchaser by a declarant together with a history of claims under the qualified warranty.

If any of these documents are not in final form, the documents must be marked "draft" and, before closing the sale of a unit, the purchaser must be given notice of any material changes to the draft documents.

(4) A declarant must promptly amend the public offering statement to reflect any material change in the information required under this section.

(i) Is a general partner, managing member, officer, director, or employer of the person;

1219 ESSBSB 5796 (i)(ii) IsDirectly aor generalindirectly partner,or managingacting member,in officer,concert director,with one or employermore other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than ((twenty)) 20 percent of the voting interest in the person;

(ii) Directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than ((twenty)) 20 percent of the voting interest in the person;

1320 ESSBSB 5796 (6) "Board" means the body, regardless of name, designated in the declaration, map, or organizational documents, with primary authority to manage the affairs of the association.

1421 ESSBSB 5796 condominium notice prior to entering into the rental agreement or lawfully taking occupancy, whichever event occurred first;

1522 ESSBSB 5796 (a) Any person who executes as declarant a declaration;

1623 ESSBSB 5796 be retained, retrieved, and reviewed by the sender and the recipient of the communication, and that may be directly reproduced in a tangible medium by a sender and recipient.

1724 ESSBSB 5796 64.90.210 (1)(b) or (3) for the exclusive use of one or more, but fewer than all, of the unit owners.

1825 ESSBSB 5796 as both are defined in RCW 58.17.020 and in which the boundaries of units are established pursuant to chapter 58.17 RCW.

1926 ESSBSB 5796 (((47))) (48) "Reserve study professional" means an independent person who is suitably qualified by knowledge, skill, experience, training, or education to prepare a reserve study in accordance with RCW 64.90.545 and 64.90.550.

(f) Merge or consolidate a common interest community with another common interest community ((ofof the same form of ownership)),ownership, pursuant to RCW 64.90.310;

2027 ESSBSB 5796 (g) Appoint or remove any officer or board member of the association or any master association or to veto or approve a proposed action of any board or association, pursuant to RCW 64.90.415(1);

2128 ESSBSB 5796 common interest community whose lease expires simultaneously with any lease the expiration or termination of which will remove the unit from the common interest community, but does not include a person having an interest in a unit solely as security for an obligation.

2229 ESSBSB 5796 currently in effect pursuant to this chapter as a result of earlier application of this section;

2330 ESSBSB 5796 (i) RCW 64.90.265 (1) and (2), concerning subdivision and combination of units;

2431 ESSBSB 5796 Sec.

2532 ESSBSB 5796 name of the community, a statement that the common interest community is a condominium, cooperative, plat community, or miscellaneous community;

2633 ESSBSB 5796 the exercise of each development right or a statement that no assurances are made in those regards;

2734 ESSBSB 5796 (1)(a) Except for the limited common elements described in RCW 64.90.210 (1)(b) and (3), the declaration must specify to which unit or units each limited common element is allocated.

If approved, the unit owners must provide the proposed amendment to the association for review and approval before execution.

The association may require revisions to ensure correctness, clarity, and compliance with this chapter or the declaration.

Unless otherwise agreed by the unit owners and association, all costs of preparing, revising, executing, and recording the amendment shall be borne by the affected unit owners.

p.A unit owner may request the board to amend the declaration to allocate all or part of a common element as a limited common element for the exclusive use of the owner's unit.

28 ESSB 5796 A unit owner may request the board to amend the declaration to allocate all or part of a common element as a limited common element for the exclusive use of the owner's unit.

(b)p. If the board approves the amendment, the board shall give notice to all unit owners of its action and include a statement that unit owners may object in a record to the amendment not later than 30 days after delivery of the notice.

35 SB 5796 (b) If the board approves the amendment, the board shall give notice to all unit owners of its action and include a statement that unit owners may object in a record to the amendment not later than 30 days after delivery of the notice.

(c) If the board receives a timely objection, the amendment becomes effective only if the unit owners of units to which at least 67 percent of the votes are allocated, including at least 67 percent of the votes that are allocated to units not owned by the declarant, vote under RCW 64.90.45564.90.455, whether or not a quorum is present, to approve the amendment.

Unless the board determines, after receipt of all required information, that the reallocations are unreasonable or that the proposed boundary relocation does not comply with the declaration, RCW 64.90.255, or other provisions of law, the board must approve the application and prepare any amendments to the p.declaration and map in accordance with the requirements of subsection (3) of this section.

29(2)(a) ESSB((Subject 5796to the provisions of the declaration and mapother inprovisions accordanceof withlaw, boundaries between units and common elements may be relocated to incorporate common elements within a unit by an amendment to the requirementsdeclaration ofupon subsectionapplication (3)to ofthe thisassociation section.by p.

(2)(a)36 ((SubjectSB to5796 the provisions of the declaration and other provisions of law, boundaries between units and common elements may be relocated to incorporate common elements within a unit by an amendment to the declaration upon application to the association by the unit owner of the unit who proposes to relocate a boundary.

(b) The board may approve the amendment only if the unit owners of units to which at least 67 percent of the votes are allocated, including at least 67 percent of the votes that are allocated to units not owned by the declarant, vote under RCW 64.90.45564.90.455, whether or not a quorum is present, to approve the amendment.

and p.(b) In a cooperative shall prepare and record amendments to the declaration, including any amendment to the map necessary to show or describe the altered boundaries of affected units, and their dimensions and identifying numbers.

30(((b) ESSBThe 5796amendment (b)to Inthe adeclaration cooperativemust shallbe prepareexecuted andby record amendments to the declaration,unit includingowner anyof amendmentthe tounit, the mapboundaries necessaryof towhich showare orbeing describerelocated, theand alteredby boundariesthe ofassociation, affectedcontain units,words andof theirconveyance dimensionsbetween them, and identifyingp. numbers.

(((b)37 TheSB amendment5796 to the declaration must be executed by the unit owner of the unit, the boundaries of which are being relocated, and by the association, contain words of conveyance between them, and be recorded in the names of the unit owner or owners and the association, as grantor or grantee, as appropriate and as required under RCW 64.90.285(3).

NEW SECTION.

RCWA 64.90.270new andsection 2018is cadded 277to schapter 21564.90 areRCW each amended to read as follows:

(((1)(1) TheExcept physicalas boundariesprovided of a unit located in asubsection building(2) containingof orthis comprisingsection, thatif unitthe constructedconstruction, reconstruction, or reconstructedalteration inof substantiala accordancebuilding withor the map,vertical or amendmentlateral tomovement theof map,a arebuilding itsresults boundariesin ratheran thanencroachment anydue boundariesto showna ondivergence between the map,existing regardlessphysical ofboundaries settling or lateral movement of thea unit orand ofthe anyboundaries buildingdescribed containingin or comprising the unit,declaration orunder ofRCW any64.90.225(1)(d), minorthe varianceexisting betweenphysical boundaries of the unit orare anyits buildinglegal containingboundaries, orrather comprisingthan the unitboundaries showndescribed onin the map.declaration.

(2) This section does not relieve a unit owner from liability in case of the unit owner's willful misconduct or relieve a declarant or any other person from liability for failure to adhere to the map.)) (1) Except as provided in subsection (2) of this section, if the construction, reconstruction, or alteration of a building or the vertical or lateral movement of a building results in an encroachment due to a divergence between the existing physical boundaries of a unit and the boundaries described in the declaration under RCW 64.90.225(1)(d), the existing physical boundaries of the unit are its legal boundaries, rather than the boundaries described in the declaration.

p.(a) Extends beyond five feet, as measured from any point on the common boundary along a line perpendicular to the boundary;

31 ESSB 5796 (a) Extends beyond five feet, as measured from any point on the common boundary along a line perpendicular to the boundary;

or certain unit owners under RCW 64.90.240 (2) or (3), ((64.90.260(1),)) 64.90.265(2), or 64.90.290(2), and except as limited by subsections (4), (6), (7), (((8),)) and (((12))) (11) of this section, the declaration may be amendedp. only by vote or agreement of unit owners of units to which at least ((sixty-seven)) 67 percent of the votes in the association are allocated, unless the declaration specifies a different percentage not to exceed ((ninety)) 90 percent for all amendments or for specific subjects of amendment.

38 SB 5796 amended only by vote or agreement of unit owners of units to which at least ((sixty-seven)) 67 percent of the votes in the association are allocated, unless the declaration specifies a different percentage not to exceed ((ninety)) 90 percent for all amendments or for specific subjects of amendment.

(b) If the declaration requires the approval of another person as a condition of its effectiveness, the amendment is not valid without that approvalapproval((; ((;

An amendment((, except an amendment pursuant to RCW 64.90.260(1),)) must be indexed in the grantee's index in the name of the common interest community p.and the association and in the grantor's index in the name of the parties executing the amendment.

32 ESSB 5796 and the association and in the grantor's index in the name of the parties executing the amendment.

(6) ((The declaration may require a higher percentage of unit owner approval for an amendment that is intended to prohibit or materially restrict the uses of units permitted under the applicable zoning ordinances, or to protect the interests of members of a defined class of owners, or to protect other legitimate interests of thep. association or its members.

39 SB 5796 the association or its members.

p.(((8))) (7) A provision in the declaration creating special declarant rights that have not expired may not be amended without the consent of the declarant.

33 ESSB 5796 (((8))) (7) A provision in the declaration creating special declarant rights that have not expired may not be amended without the consent of the declarant.

(((10))) (9) Upon ((thirty)) 30-day advance notice to unit owners, the declarant may, without a vote of the unit owners or approval by the board, unilaterally adopt, execute, and record a corrective amendment or supplement to the governing documents to correct a mathematical mistake, an inconsistency, or a scrivener's error, or clarify an ambiguity in the governing documents with respectp. to an objectively verifiable fact including, without limitation, recalculating the undivided interest in the common elements, the liability for common expenses, or the number of votes in the unit owners association appertaining to a unit, within five years after the recordation or adoption of the governing document containing or creating the mistake, inconsistency, error, or ambiguity.

40 SB 5796 respect to an objectively verifiable fact including, without limitation, recalculating the undivided interest in the common elements, the liability for common expenses, or the number of votes in the unit owners association appertaining to a unit, within five years after the recordation or adoption of the governing document containing or creating the mistake, inconsistency, error, or ambiguity.

individuals p.with sensory, mental, or physical disabilities;

34 ESSB 5796 with sensory, mental, or physical disabilities;

(((13))) (12)(a) If the declaration requires that amendments to the declaration may be adopted only by the vote or agreement of unit ownersp. of units to which more than ((sixty-seven)) 67 percent of the votes in the association are allocated, and the percentage required is otherwise consistent with this chapter, the amendment is approved if:

41 SB 5796 owners of units to which more than ((sixty-seven)) 67 percent of the votes in the association are allocated, and the percentage required is otherwise consistent with this chapter, the amendment is approved if:

or p.(iii)(A) Unit owners of units to which at least ((sixty-seven)) 67 percent of the votes in the association are allocated vote for or agree to the proposed amendment;

35 ESSB 5796 (iii)(A) Unit owners of units to which at least ((sixty-seven)) 67 percent of the votes in the association are allocated vote for or agree to the proposed amendment;

(1) Except for a taking of all the units by condemnation, foreclosure against an entire cooperative of a security interest that has priority over the declaration, or in the circumstances described inp. RCW 64.90.325, a common interest community may be terminated only by agreement of unit owners of units to which at least ((eighty)) 80 percent of the votes in the association are allocated, ((or any larger percentage the declaration specifies)) including at least 80 percent of the votes allocated to units not owned by the declarant, and with any other approvals required by the declaration.

42 SB 5796 in RCW 64.90.325, a common interest community may be terminated only by agreement of unit owners of units to which at least ((eighty)) 80 percent of the votes in the association are allocated, ((or any larger percentage the declaration specifies)) including at least 80 percent of the votes allocated to units not owned by the declarant, and with any other approvals required by the declaration.

A termination agreement and all ratifications of the agreement must be recorded in p.every county in which a portion of the common interest community is situated and is effective only upon recordation.

36 ESSB 5796 every county in which a portion of the common interest community is situated and is effective only upon recordation.

If, pursuant to the agreement, any real estate in the common interest communityp. is to be sold following termination, the termination agreement must set forth the minimum purchase price, manner of payment, and outside closing date, and may include any other terms of sale.

43 SB 5796 community is to be sold following termination, the termination agreement must set forth the minimum purchase price, manner of payment, and outside closing date, and may include any other terms of sale.

If, pursuant to the agreement, any real estate in the common interest community is to be sold following termination, the termination agreement must set forth the minimum purchase price, manner of payment, and outside closing date, and may include any other terms of sale.)) p.(4)(a) The association, on behalf of the unit owners, may contract for the sale of real estate in a common interest community, but the contract is not binding on the unit owners until approved pursuant to subsections (1) and (2) of this section.

37 ESSB 5796 (4)(a) The association, on behalf of the unit owners, may contract for the sale of real estate in a common interest community, but the contract is not binding on the unit owners until approved pursuant to subsections (1) and (2) of this section.

(5) ((In a condominium, plat community, or miscellaneous community, if any portion of the real estate constituting the common interest community is not to be sold following termination, title to those portions of the real estate constituting the common elements and, in a common interest community containing units having horizontal boundaries between units described in the declaration, title to all the real estate containing such boundaries in the common interest community vests in the unit owners upon termination as tenants in common in proportion to their respective interests as provided in subsection (8) of this section, and liens on the units shift accordingly.

While the tenancy in common exists, each unit owner and the unit owner's successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constituted the unit.)) Termination does not change title to a unit or common element not to be sold following termination unless the termination agreement otherwise provides.

3844 ESSBSB 5796 (6)(((a)))(5) Following((In terminationa condominium, plat community, or miscellaneous community, if any portion of the real estate constituting the common interest community,community theis proceedsnot ofto abe salesold following termination, title to those portions of the real estate,estate togetherconstituting withthe common elements and, in a common interest community containing units having horizontal boundaries between units described in the assetsdeclaration, oftitle to all the association,real areestate heldcontaining bysuch boundaries in the associationcommon asinterest trusteecommunity forvests in the unit owners andupon holderstermination ofas lienstenants onin thecommon unitsin asproportion to their respective interests mayas appear.provided in subsection (8) of this section, and liens on the units shift accordingly.

While the tenancy in common exists, each unit owner and the unit owner's successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constituted the unit.)) Termination does not change title to a unit or common element not to be sold following termination unless the termination agreement otherwise provides.

(6)(((a))) Following termination of the common interest community, the proceeds of a sale of real estate, together with the assets of the association, are held by the association as trustee for unit owners and holders of liens on the units as their interests may appear.

(a)p. The lien of each creditor of the association that was perfected against the association before termination becomes, upon termination, a lien against each unit owner's interest in the unit as of the date the lien was perfected;

45 SB 5796 (a) The lien of each creditor of the association that was perfected against the association before termination becomes, upon termination, a lien against each unit owner's interest in the unit as of the date the lien was perfected;

p.(e) The assets of the association must be distributed to all unit owners and all lienholders as their interests may appear in the order described in this subsection;

39 ESSB 5796 (e) The assets of the association must be distributed to all unit owners and all lienholders as their interests may appear in the order described in this subsection;

(b) A unit owner that objects under (a)(ii) of this subsection may select an appraiser to represent the owner and make an appraisal ofp. the unit owner's unit.

46 SB 5796 of the unit owner's unit.

p.(i) In a condominium, their respective common element interests immediately before the termination;

40 ESSB 5796 (i) In a condominium, their respective common element interests immediately before the termination;

(((10))) (11) In a condominium, plat community, or miscellaneous community, if a lien or encumbrance against a portion of the real estate comprising the common interest community has priority over the declarationp. and the lien or encumbrance has not been partially released, the parties foreclosing the lien or encumbrance, upon foreclosure, may record an instrument excluding the real estate subject to that lien or encumbrance from the common interest community.

47 SB 5796 declaration and the lien or encumbrance has not been partially released, the parties foreclosing the lien or encumbrance, upon foreclosure, may record an instrument excluding the real estate subject to that lien or encumbrance from the common interest community.

p.(13) A termination agreement complying with this section may provide for termination of fewer than all of the units in a common interest community, subject to the following rules:

41 ESSB 5796 (13) A termination agreement complying with this section may provide for termination of fewer than all of the units in a common interest community, subject to the following:

and (f) The association shall record with the termination agreement under subsection (2) of this section an amendment to the declaration or an amended and restated declaration,declaration. and, if necessary, an amendment to the map or an amended and restated map.

(c)p. Impose assessments for common expenses and specially allocated expenses on the unit owners as provided in RCW ((64.90.080(1))) 64.90.480(1) and 64.90.525;

48 SB 5796 (c) Impose assessments for common expenses and specially allocated expenses on the unit owners as provided in RCW ((64.90.080(1))) 64.90.480(1) and 64.90.525;

p.(c) Hire and discharge managing agents and other employees, agents, and independent contractors;

42 ESSB 5796 (c) Hire and discharge managing agents and other employees, agents, and independent contractors;

(i) Grant easements, leases, and licenses((, and concessions)) through or over the common elements, but a grant to a unit owner that benefits the unit owner's unit is allowed only by reallocation under RCW 64.90.240(3) of the common elements to a limited common element, and petition for or consent to the vacation of streets and alleys.alleys;

Notwithstanding the foregoing, a reallocation shall not be required in regard to the installation of an electric vehicle charging station on the common elements;

(i)p. The use, rental, or operation of the common elements, other than limited common elements described in RCW 64.90.210 (1)(b) and (3);

49 SB 5796 (i) The use, rental, or operation of the common elements, other than limited common elements described in RCW 64.90.210 (1)(b) and (3);

(l) Enforce the governing documents and, after notice and opportunity to be heard, impose and collect reasonable fines for p.violations of the governing documents in accordance with a previously established schedule of fines adopted by the board of directors and furnished to the owners pursuant to the requirements for notice in RCW 64.90.505;

43 ESSB 5796 violations of the governing documents in accordance with a previously established schedule of fines adopted by the board of directors and furnished to the owners pursuant to the requirements for notice in RCW 64.90.505;

(w) Require that disputes between the association and unit owners or between two or more unit owners regarding the common interest community, other than those governed by chapter 64.50 RCW, be submitted to nonbinding alternative dispute resolution as a prerequisite to commencement of a judicial proceeding;

and (x) Suspend any right or privilege of a unit owner who fails to pay an assessment which suspension may be imposed for a reasonable amount of time not to exceed one business day after the association receives full payment of the delinquent assessment and the board has received confirmation of payment and cleared funds, but may not:

4450 ESSBSB 5796 (i)(w) DenyRequire athat disputes between the association and unit ownerowners or otherbetween occupanttwo accessor tomore unit owners regarding the owner'scommon unit,interest orcommunity, anyother limitedthan commonthose elementsgoverned allocatedby onlychapter 64.50 RCW, be submitted to thatnonbinding unit,alternative ordispute anyresolution commonas elementsa necessaryprerequisite to accesscommencement theof unit;a judicial proceeding;

and (x) Suspend any right or privilege of a unit owner who fails to pay an assessment which suspension may be imposed for a reasonable amount of time not to exceed one business day after the association receives full payment of the delinquent assessment and confirmation of cleared funds, but may not:

(i) Deny a unit owner or other occupant access to the owner's unit, or any limited common elements allocated only to that unit, or any common elements necessary to access the unit;

The notice must include the purpose and maximum amount of the loan, the estimated amount and term of any assessments required to repay the loan, a reasonably detailed projection of how thep. money will be expended, and the interest rate and term of the loan.

51 SB 5796 the money will be expended, and the interest rate and term of the loan.

(c) Unless at that meeting, whether or not a quorum is present, unit owners holding a majority of the votes in the association or any larger percentage specified in the declaration reject the proposal to p.borrow funds, the association may proceed to borrow the funds in substantial accordance with the terms contained in the notice.

45 ESSB 5796 borrow funds, the association may proceed to borrow the funds in substantial accordance with the terms contained in the notice.

(a)p. The association's legal position does not justify taking any or further enforcement action;

52 SB 5796 (a) The association's legal position does not justify taking any or further enforcement action;

p.(9) The board's decision under subsections (7) and (8) of this section to not pursue enforcement under one set of circumstances does not prevent the board from taking enforcement action under another set of circumstances, but the board may not be arbitrary or capricious in taking enforcement action.

46 ESSB 5796 (9) The board's decision under subsections (7) and (8) of this section to not pursue enforcement under one set of circumstances does not prevent the board from taking enforcement action under another set of circumstances, but the board may not be arbitrary or capricious in taking enforcement action.

(c) Unless provided otherwise in the declaration or organizational documents, board members and officers must take office uponp. adjournment of the meeting at which they were elected or appointed or, if not elected or appointed at a meeting, at the time of such election or appointment, and must serve until their successor takes office.

(d)53 InSB determining5796 theupon qualificationsadjournment of anythe officermeeting orat boardwhich memberthey ofwere theelected association,or "unitappointed owner"or, includes,if unlessnot theelected declaration or organizationalappointed documentsat providea otherwise,meeting, anyat boardthe member,time officer,of member,such partner,election or trusteeappointment, ofand anymust person,serve whountil is,their p.successor takes office.

47(d) ESSBIn 5796determining the qualifications of any officer or board member of the association, "unit owner" includes, unless the declaration or organizational documents provide otherwise, any board member, officer, member, partner, or trustee of any person, who is, either alone or in conjunction with another person or persons, a unit owner.

(7) A declaration may provide for the appointment of specified positions on the board by persons other than the declarant or an affiliatep. of the declarant during or after the period of declarant control.

54 SB 5796 affiliate of the declarant during or after the period of declarant control.

p.NEW SECTION.

48 ESSB 5796 NEW SECTION.

(f) The financial records, including canceled checks, bank statements, and financial statements of the association, and source documentsp. from the time of formation of the association through the date of transfer of control to the unit owners;

55 SB 5796 documents from the time of formation of the association through the date of transfer of control to the unit owners;

p.(j) Except for alterations to a unit done by a unit owner other than the declarant, a copy of the most recent plans and specifications used in the construction or remodeling of the common interest community, except for buildings containing fewer than three units;

49 ESSB 5796 (j) Except for alterations to a unit done by a unit owner other than the declarant, a copy of the most recent plans and specifications used in the construction or remodeling of the common interest community, except for buildings containing fewer than three units;

((and)) (s)p. Originals or copies of all other contracts to which the association is a party;

56 SB 5796 (s) Originals or copies of all other contracts to which the association is a party;

(2) Within ((sixty)) 60 days of the transition meeting, the board must retain the services of a certified public accountant to audit the records of the association as the date of the transition meeting in accordance with generally accepted auditing standards unless the p.unit owners, other than the declarant, to which a majority of the votes are allocated elect to waive the audit.

50 ESSB 5796 unit owners, other than the declarant, to which a majority of the votes are allocated elect to waive the audit.

(a) A transferor is not relieved of any obligation or liability arising before the transfer and remains liable for such warranty obligations arising before the transfer imposed upon the transferor underp. this chapter.

57 SB 5796 under this chapter.

p.(c) If a transferor retains any special declarant rights, but transfers other special declarant rights to a successor who is not an affiliate of the declarant, the transferor is liable for any obligations or liabilities imposed on a declarant under this chapter or by the declaration relating to the retained special declarant rights, whether arising before or after the transfer.

51 ESSB 5796 (c) If a transferor retains any special declarant rights, but transfers other special declarant rights to a successor who is not an affiliate of the declarant, the transferor is liable for any obligations or liabilities imposed on a declarant under this chapter or by the declaration relating to the retained special declarant rights, whether arising before or after the transfer.

(b)p. A successor to any special declarant right, other than a successor who is an affiliate of a declarant, is subject to the obligations and liabilities imposed under this chapter or the declaration:

58 SB 5796 (b) A successor to any special declarant right, other than a successor who is an affiliate of a declarant, is subject to the obligations and liabilities imposed under this chapter or the declaration:

p.(B) Any warranty obligations pursuant to RCW 64.90.670 (1) through (3) on improvements made or contracted for, or units sold by, a previous declarant or that were made before the common interest community was created;

52 ESSB 5796 (B) Any warranty obligations pursuant to RCW 64.90.670 (1) through (3) on improvements made or contracted for, or units sold by, a previous declarant or that were made before the common interest community was created;

(3)p. A declarant that no longer owns a unit or a development right ceases to have any special declarant rights.

59 SB 5796 (3) A declarant that no longer owns a unit or a development right ceases to have any special declarant rights.

(5) Except as otherwise provided in subsection (8), (9), (11), or (12) of this section, a successor to a special declarant right is p.subject to all obligations and liabilities imposed on the transferor by this chapter or the declaration.

53 ESSB 5796 subject to all obligations and liabilities imposed on the transferor by this chapter or the declaration.

(10)p. If an involuntary transfer includes a special declarant right, the transferee may elect to acquire or reject the special declarant right.

60 SB 5796 (10) If an involuntary transfer includes a special declarant right, the transferee may elect to acquire or reject the special declarant right.

If(11) theA judgmentsuccessor orto instrumenta doesspecial notdeclarant describeright theby specialan declarantinvoluntary right,transfer themay transfereedeclare willin bea presumedrecorded toinstrument havethe electedsuccessor's intent to accepthold the specialright declarantsolely right.for transfer to another person.

(11) A successor to a special declarant right by an involuntary transfer may declare in a recorded instrument the successor's intent p.

54 ESSB 5796 to hold the right solely for transfer to another person.

((Only matters described in the meeting notice requiredp. in (c) of this subsection may be considered at a special meeting.)) The unit owners may discuss at a special meeting a matter not described in the notice under (c) of this subsection but may not take action on the matter without the consent of all unit owners.

61 SB 5796 required in (c) of this subsection may be considered at a special meeting.)) The unit owners may discuss at a special meeting a matter not described in the notice under (c) of this subsection but may not take action on the matter without the consent of all unit owners.

Notice may be by any means described in p.RCW 64.90.515.

55 ESSB 5796 RCW 64.90.515.

(f) In the notice for a meeting held at a physical location, the executive board may notify all unit owners that they may participate remotely in the meeting by a means of communication described in (e) of this subsection.

(a)p. Meetings must be open to the unit owners except during executive sessions, but the board may expel or prohibit attendance by any person who, after warning by the chair of the meeting, disrupts the meeting.

62 SB 5796 (a) Meetings must be open to the unit owners except during executive sessions, but the board may expel or prohibit attendance by any person who, after warning by the chair of the meeting, disrupts the meeting.

p.(i) Consult with the association's attorney concerning legal matters;

56 ESSB 5796 (i) Consult with the association's attorney concerning legal matters;

(f) Unless the meeting is included in a schedule given to the unit owners ((or the meeting is called to deal with an emergency)), the secretary or other officer specified in the organizational documentsp. must provide notice of each board meeting to each board member and to the unit owners.

63 SB 5796 documents must provide notice of each board meeting to each board member and to the unit owners.

(g) If any materials are distributed to the board before the meeting, the board must make copies of those materials reasonably available to the unit owners, except that the board need not make p.available copies of unapproved minutes or materials that are to be considered in executive session.

57 ESSB 5796 available copies of unapproved minutes or materials that are to be considered in executive session.

(l) A board member who is present at a board meeting at which any action is taken is presumed to have assented to the action taken unless the board member's dissent or abstention to such action is lodged with the person acting as the secretary of the meeting before adjournmentp. of the meeting or provided in a record to the secretary of the association immediately after adjournment of the meeting.

64 SB 5796 adjournment of the meeting or provided in a record to the secretary of the association immediately after adjournment of the meeting.

((A challenge to p.the validity of an action of the board for failure)) An action seeking relief for failure of the board to comply with this section may not be brought more than ((ninety)) 90 days after the minutes of the board of the meeting at which the action was taken are approved or the record of that action is distributed to unit owners, whichever is later.

58 ESSB 5796 the validity of an action of the board for failure)) An action seeking relief for failure of the board to comply with this section may not be brought more than ((ninety)) 90 days after the minutes of the board of the meeting at which the action was taken are approved or the record of that action is distributed to unit owners, whichever is later.

(a) ((Unit owners or their proxies who are present in person)) Unless the declaration or bylaws otherwise provide, and except as provided in subsection (9) of this section, unit owners or their proxyproxies holders may vote by voice vote, show of hands, standing, written ballot, or any other method ((for determining the votes of unit owners, as designated by the person presiding)) authorized at the meeting.

If more than one of the unit owners are present, the votes allocated to that unit may be cast only in accordance with the agreementp. of a majority in interest of the unit owners, unless the declaration expressly provides otherwise.

There65 isSB a5796 majority agreement if any one of thea unitmajority ownersin castsinterest the votes allocated to the unit without protest being made promptly to the person presiding over the meeting by any of the other unit ownersowners, ofunless the unit.))declaration Ifexpressly unitprovides ownersotherwise. attend the meeting by a means of communication under RCW p.

59There ESSBis 5796a majority agreement if any one of the unit owners casts the votes allocated to the unit without protest being made promptly to the person presiding over the meeting by any of the other unit owners of the unit.)) If unit owners attend the meeting by a means of communication under RCW 64.90.445(1) (e) or (f), the association shall implement reasonable measures to verify the identity of each unit owner attending remotely.

(c) ((UnlessUnless a greater number or fraction of the votes in the association is required under this chapter or the declaration or organizational documents, a majority of the votes cast determines the outcome of any action of the association.

(d)))(d) Whenever proposals or board members are to be voted upon at a meeting, a unit owner may vote by duly executed absentee ballot if:

(((4))) (d)(e) When a unit owner votes by absentee ballot under (c) of this subsection, the association must be able to verify that the ballot is cast by the unit owner having the right to do so.

The death or disability of a unit owner does not revokep. a proxy given by the unit owner unless the person presiding over the meeting has actual notice of the death or disability.

66 SB 5796 revoke a proxy given by the unit owner unless the person presiding over the meeting has actual notice of the death or disability.

p.(((6))) (4) Unless ((prohibited or limited by)) the declaration or organizational documents otherwise provide, an association may conduct a vote without a meeting.

60 ESSB 5796 (((6))) (4) Unless ((prohibited or limited by)) the declaration or organizational documents otherwise provide, an association may conduct a vote without a meeting.

(ii) A ballotpaper inballot a tangible medium to every unit owner except a unit owner that has consented in a record to electronic voting;

(f)p. Approval by ballot pursuant to this subsection is valid only if the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action.

(g)67 IfSB the5796 association(f) doesApproval notby receiveballot apursuant sufficientto numberthis ofsubsection votesis tovalid constituteonly aif quorumthe ornumber toof approvevotes thecast proposal by theballot dateequals andor timeexceeds establishedthe forquorum returnrequired ofto ballots,be thepresent boardat maya extendmeeting authorizing the p.action.

61(g) ESSBIf 5796the association does not receive a sufficient number of votes to constitute a quorum or to approve the proposal by the date and time established for return of ballots, the board may extend the deadline for a reasonable period not to exceed ((eleven)) 11 months upon further notice to all members in accordance with (b) of this subsection.

(((7))) (k) The association shall implement reasonable measures to verify that each ballotpaper in a tangible medium and electronic ballot is cast by the unit owner having a right to do so.

(l) A unit owner consents toin electronic voting by delivering to the association a record indicatingto suchelectronic consentvoting or by casting an electronic ballot.

(((9))) (7) In any vote of the unit owners, votes allocated to a unit owned by the association must be cast in the same proportion as the votes cast on the matter by unit owners other than the association.

6268 ESSBSB 5796 (8)(a)(((9))) Unless(7) aIn differentany numbervote or fraction of the unit owners, votes inallocated anto associationa isunit requiredowned by thisthe chapterassociation ormust thebe declaration,cast ain majoritythe ofsame proportion as the votes cast determineson the outcomematter ofby aunit voteowners takenother atthan athe meetingassociation. or without a meeting.

(8)(a) Unless a different number or fraction of the votes in an association is required by this chapter or the declaration, a majority of the votes cast determines the outcome of a vote taken at a meeting or without a meeting.

(9) Notwithstanding any other law or provision of the governing documents, the following votes of unit owners shall be conducted by secret ballot:

(a) Election of board members;

(b) removal of board members or officers;

(c) amendments to the declaration or governing documents;

or (d) unit owner approval of an amendment to the declaration for the reallocation of a common element as a limited common element for the exclusive use of an owner's unit pursuant to RCW 64.90.240.

(i) The common expense assessments, excluding any amounts for capital improvements, based on the periodic budget adopted by the association pursuant to RCW 64.90.480(1), along with any specially allocated assessments that are properly assessable against the unit p.

6369 ESSBSB 5796 (i) The common expense assessments, excluding any amounts for capital improvements, based on the periodic budget adopted by the association pursuant to RCW 64.90.480(1), along with any specially allocated assessments that are properly assessable against the unit under such periodic budget, which would have become due in the absence of acceleration during the six months immediately preceding the institution of proceedings to foreclose either the association's lien or a security interest described in subsection (2)(b) of this section;

(A) The date of recording of a notice of trustee's sale by a deed of trust beneficiary;

6470 ESSBSB 5796 (A)(B) The date of recordingcommencement, ofpursuant ato noticeapplicable court rules, of trustee'san saleaction for judicial foreclosure either by athe deedassociation or by the holder of trusta beneficiary;recorded security interest;

(B) The date of commencement, pursuant to applicable court rules, of an action for judicial foreclosure either by the association or by the holder of a recorded security interest;

Further p.notice or recordation of any claim of lien for assessment under this section is not required, but is not prohibited.

65p. ESSB 5796 notice or recordation of any claim of lien for assessment under this section is not required, but is not prohibited.

71 SB 5796 (9) A lien for unpaid assessments and the personal liability for payment of those assessments are extinguished unless proceedings to enforce the lien or collect the debt are instituted within six years after the full amount of the assessments sought to be recovered becomes due.

The association or its authorized representative may purchase the unit at the foreclosure sale and acquire, hold, lease, mortgage, or convey p.

6672 ESSBSB 5796 association or its authorized representative may purchase the unit at the foreclosure sale and acquire, hold, lease, mortgage, or convey the unit.

The p.notices required under this subsection may be sent to any address reasonable in the circumstances.

67A ESSBsale 5796 notices required under this subsection may not be sentheld tountil anyfive addressp. reasonable in the circumstances.

A73 saleSB may5796 not be held until five weeks after the sending of the notice.

(e) At any time before the association has conveyed a unit in a cooperative or entered into a contract for its conveyance under the power of sale, the unit owners or the holder of any subordinate security interest may cure the unit owner's default and prevent sale or other conveyance by tendering the performance due under the security agreement, including any amounts due because of exercise of p.

6874 ESSBSB 5796 or other conveyance by tendering the performance due under the security agreement, including any amounts due because of exercise of a right to accelerate, plus the reasonable expenses of proceeding to foreclosure incurred to the time of tender, including reasonable attorneys' fees and costs of the creditor.

If the association does not establish such a rate, delinquent assessments bear interest from the date of delinquency at the maximum rate p.

6975 ESSBSB 5796 association does not establish such a rate, delinquent assessments bear interest from the date of delinquency at the maximum rate calculated under RCW 19.52.020 on the date on which the assessments became delinquent.

The statewide civil legal aid hotline for assistance and referrals to other housing counselors and attorneys p.

7076 ESSBSB 5796 The statewide civil legal aid hotline for assistance and referrals to other housing counselors and attorneys Telephone:

The second preforeclosure notice may not be mailed sooner than 60 days after the p.first preforeclosure notice required in subsection (21)(a) of this section is mailed;

71p. ESSB 5796 first preforeclosure notice required in subsection (21)(a) of this section is mailed;

77 SB 5796 (c) At least 180 days have elapsed from the date the minimum amount required in (a) of this subsection has accrued;

(ii) The association's actual costs and reasonable attorneys' fees incurred in foreclosing its lien but incurred after the giving p.

7278 ESSBSB 5796 (ii) The association's actual costs and reasonable attorneys' fees incurred in foreclosing its lien but incurred after the giving of the notice described in (a)(iii) of this subsection;

(ii) "Capital improvements" does not include making, in the ordinary course of management, repairs to common elements or replacements of the common elements with substantially similar items, p.

7379 ESSBSB 5796 (ii) "Capital improvements" does not include making, in the ordinary course of management, repairs to common elements or replacements of the common elements with substantially similar items, subject to:

(10) This section does not prohibit actions against unit owners to recover sums for which subsection (1) of this section creates a lien or prohibit an association from taking a deed in lieu of foreclosure.

7480 ESSBSB 5796 (10)(11) ThisThe sectionassociation doesupon notwritten prohibitrequest actionsmust againstfurnish to a unit ownersowner toor recovera sumsmortgagee fora whichstatement subsectionsigned (1)by an officer or authorized agent of thisthe sectionassociation createssetting aforth lienthe oramount prohibitof anunpaid associationassessments fromor takingthe apriority deedamount inagainst lieuthat ofunit, foreclosure.or both.

(11) The association upon written request must furnish to a unit owner or a mortgagee a statement signed by an officer or authorized agent of the association setting forth the amount of unpaid assessments or the priority amount against that unit, or both.

(c) In a cooperative in which the unit owners' interests in the units are real estate, the association's lien must be foreclosed in p.like manner as a mortgage on real estate or by power of sale under (b) of this subsection.

75(d) ESSBIn 5796a likecooperative mannerin aswhich athe mortgageunit onowners' realinterests estatein orthe byunits powerare ofpersonal saleproperty, underthe (b)association's oflien thismust subsection.be p.

(d)81 InSB a5796 cooperative in which the unit owners' interests in the units are personal property, the association's lien must be foreclosed in like manner as a security interest under chapter 62A.9A RCW.

p.(c) The proceeds of a foreclosure sale must be applied in the following order:

76 ESSB 5796 (c) The proceeds of a foreclosure sale must be applied in the following order:

(ii)p. The reasonable expenses of securing possession before sale;

82 SB 5796 (ii) The reasonable expenses of securing possession before sale;

(15) In an action by an association to collect assessments or to foreclose a lien on a unit under this section, the court may appoint p.a receiver to collect all sums alleged to be due and owing to a unit owner before commencement or during pendency of the action.

77 ESSB 5796 a receiver to collect all sums alleged to be due and owing to a unit owner before commencement or during pendency of the action.

During pendency of thep. action, the court may order the receiver to pay sums held by the receiver to the association for any assessments against the unit.

83 SB 5796 the action, the court may order the receiver to pay sums held by the receiver to the association for any assessments against the unit.

(19) The association is entitled to recover any costs and reasonable attorneys' fees incurred in connection with the collection of delinquent assessments, whether or not such collection activities p.result in a suit being commenced or prosecuted to judgment.

78The ESSBprevailing 5796party resultis inalso aentitled suitto beingrecover commencedcosts orand prosecutedreasonable top. judgment.

The84 prevailingSB party5796 is also entitled to recover costs and reasonable attorneys' fees in such suits, including any appeals, if it prevails on appeal and in the enforcement of a judgment.

(b) If, when a delinquent account is referred to an association's attorney, the first preforeclosure notice required under (a) of this subsection has not yet been mailed to the unit owner, the association p.

7985 ESSBSB 5796 (b) If, when a delinquent account is referred to an association's attorney, the first preforeclosure notice required under (a) of this subsection has not yet been mailed to the unit owner, the association or the association's attorney shall mail the first preforeclosure notice to the unit owner in order to satisfy the requirement in (a) of this subsection.

(23) Every aspect of a collection, foreclosure, sale, or other conveyance under this section, including the method, advertising, time, date, place, and terms, must be commercially reasonable.

8086 ESSBSB 5796 (23)Sec. Every aspect of a collection, foreclosure, sale, or other conveyance under this section, including the method, advertising, time, date, place, and terms, must be commercially reasonable.

Sec.

p.(n) Copies of all notices provided to unit owners or the association in accordance with this chapter or the governing documents;

81((and)) ESSBp. 5796 (n) Copies of all notices provided to unit owners or the association in accordance with this chapter or the governing documents;

((and))87 SB 5796 (o) Ballots, proxies, absentee ballots, and other records related to voting by unit owners for one year after the election, action, or vote to which they relate;

(i) During reasonable business hours and at the offices of the association or its managing agent, or at a mutually convenient time and location;

and (ii) ((AtAt the offices of the association or its managing agent))agent. Upon 10 days' notice unless the size of the request or need to redact information reasonably requires a longer time, but in no event later than 21 days without a court order allowing a longer time.

p.(b) Contracts, leases, and other commercial transactions to purchase or provide goods or services currently being negotiated;

82 ESSB 5796 (b) Contracts, leases, and other commercial transactions to purchase or provide goods or services currently being negotiated;

(e)p. Legal advice or communications that are otherwise protected by the attorney-client privilege or the attorney work product doctrine, including communications with the managing agent or other agent of the association;

88 SB 5796 (e) Legal advice or communications that are otherwise protected by the attorney-client privilege or the attorney work product doctrine, including communications with the managing agent or other agent of the association;

(i) Unlisted telephone number ((or)) of any unit owner or resident, electronic address of any unit owner that elects to keep such electronic address confidential, or electronic address of any resident;

((or))or (k) Agreements that for good cause prohibit disclosure to the members;members.

or (l) Any information which would compromise the secrecy of a ballot cast under RCW 64.90.455(9).

(b) A unit owner is entitled to receive a free annual electronic or ((paper))paper written copy of the list retained under subsection (1)(c) of this section from the association.

p.(6) A right to copy records under this section includes the right to receive copies by photocopying or other means, including through an electronic transmission if available upon request by the unit owner.

83 ESSB 5796 (6) A right to copy records under this section includes the right to receive copies by photocopying or other means, including through an electronic transmission if available upon request by the unit owner.

(9) An association's managing agent must deliver all of the association's original books and records toand thedigital associationcopies ((immediately))thereof, uponif terminationany, ofto its management relationship with the association,association or((immediately uponupon)) suchwithin otherfive demandbusiness asp. is made by the board.

Electronic89 recordsSB must5796 be provided within five business days of termination orof theits board'smanagement demandrelationship andwith writtenthe recordsassociation, mustor beupon providedsuch withinother 10demand businessas daysis ofmade terminationby or the board'sboard. demand.

(1) In this section, "emergency" meansmeans: an event or condition or a state of emergency declared by a government for an area that includes the common interest community that constitutes an imminent:

(a) ThreatA tostate theof healthemergency ordeclared safetyby ofa thegovernment publicfor oran residentsarea ofthat includes the common interest community;

or (b) ThreatAn toevent theor habitabilitycondition ofthat units;constitutes an imminent:

or(i) (c)Threat Riskto the health or safety of substantialthe economicpublic lossor toresidents of the association.common interest community;

(ii) Threat to the habitability of units;

or (iii) Risk of substantial economic loss to the association.

p.(5) In an emergency, the board may, without regard to limitations in the governing documents, take action it considers necessary to protect the interests of the unit owners and other persons holding interests in the common interest community, acting in a manner reasonable under the circumstances.

84 ESSB 5796 (5) In an emergency, the board may, without regard to limitations in the governing documents, take action it considers necessary, as a result of the emergency, to protect the interests of the unit owners and other persons holding interests in the common interest community, acting in a manner reasonable under the circumstances.

(7)p. The board may use funds of the association, including reserves, to pay the reasonable costs of an action under subsection (5) of this section.

90 SB 5796 (7) The board may use funds of the association, including reserves, to pay the reasonable costs of an action under subsection (5) of this section.

(1)(a)(1) An association may not prohibit display of the flag of the United States, or the flag of Washington state, on or within a unit or a limited common element, except that an association may adopt reasonable restrictions pertaining to the time, place, or manner of displaying the flag of the United States necessary to protect a substantial interest of the association.

(b)For Thepurposes association may not prohibit the installation of athis flagpolesection, for"flag the display of the flag of the United States,States" ormeans the flag of Washington state, on or within a unit or a limited common element, except that an association may adopt reasonable rules and regulations pertaining to the locationUnited andStates theas sizedescribed ofin the4 flagpole.U.S.C.

(c) For purposes of this section, "flag of the United States" means the flag of the United States as described in 4 U.S.C.

(2) ((The))The An association may not prohibit display of signs,signs including outdoor signs, regarding candidates for public or p.association office, or ballot issues, on or within a unit or limited common element, but the association may adopt rules governing the time, place, size, number, and manner of those displays.

85 ESSB 5796 association office, or ballot issues, on or within a unit or limited common element, but ((the)) an association may adopt reasonable rules ((governing)) pertaining to the ((time, place, size, number,)) placement and manner of those displays.

(4)p. The association may not prohibit a unit owner from storing containers for municipal or private collection, such as compost, garbage, and recycling receptacles, in any private garage, side yard, or backyard reserved for the exclusive use of a unit.

91 SB 5796 (4) The association may not prohibit a unit owner from storing containers for municipal or private collection, such as compost, garbage, and recycling receptacles, in any private garage, side yard, or backyard reserved for the exclusive use of a unit.

(ii) A unit owner or resident to shield a ground-mounted solar energy panel if shielding the panel does not prohibit economic installation of the solar energy panel or degrade the operational p.performance quality of the solar energy panel by more than ((ten)) 10 percent;

86 ESSB 5796 performance quality of the solar energy panel by more than ((ten)) 10 percent;

(((7)))p. (8) This section must not be construed to permit installation by a unit owner of a solar panel on or in common elements without approval of the board.

92 SB 5796 (((7))) (8) This section must not be construed to permit installation by a unit owner of a solar panel on or in common elements without approval of the board.

p.(1) Notice to the association, board, or any owner or occupant of a unit under this chapter must be provided in the form of a record.

87 ESSB 5796 (1) Notice to the association, board, or any owner or occupant of a unit under this chapter must be provided in the form of a record.

(3)p. Notice may be provided in an electronic transmission as follows:

93 SB 5796 (3) Notice may be provided in an electronic transmission as follows:

p.(d) The consent of any unit owner or board member is revoked if:

88 ESSB 5796 (d) The consent of any unit owner or board member is revoked if:

(5)p. Notice is effective as follows:

94 SB 5796 (5) Notice is effective as follows:

(1) A unit owners association may not adopt or enforce a restriction, covenant, condition, bylaw, rule, ((regulation,)) p.provision of a governing document, or master deed provision that effectively prohibits((,)) or unreasonably restricts((, or limits, directly or indirectly,)) the use of a unit as a licensed family home child care operated by a family day care provider or as a licensed child day care center, except as provided in subsection (2) of this section.

89 ESSB 5796 provision of a governing document, or master deed provision that effectively prohibits((,)) or unreasonably restricts((, or limits, directly or indirectly,)) the use of a unit as a licensed family home child care operated by a family day care provider or as a licensed child day care center, except as provided in subsection (2) of this section.

((Direct access must be either from the outside of the building if the common interest community is in a building,)) A unit hasp. direct access if it is accessible from public property or through publicly accessible common elements.

95 SB 5796 has direct access if it is accessible from public property or through publicly accessible common elements.

((and)) p.(iv) Obtain day care insurance as defined in RCW 48.88.020 or provide self-insurance pursuant to chapter 48.90 RCW, consistent with the requirements in RCW 43.216.700;

90 ESSB 5796 (iv) Obtain day care insurance as defined in RCW 48.88.020 or provide self-insurance pursuant to chapter 48.90 RCW, consistent with the requirements in RCW 43.216.700;

(1) A unit owners association may not adopt or enforce a restriction, covenant, condition, bylaw, rule, provision of a governing document, or master deed provision that effectively prohibitsp. or unreasonably restricts the use of a unit as an adult family home, except as provided in subsection (2) of this section.

96 SB 5796 prohibits or unreasonably restricts the use of a unit as an adult family home, except as provided in subsection (2) of this section.

(ii) Indemnify and hold harmless the association against all claims, whether brought by judicial or administrative action, relating to the operation of the adult family home, excluding claims p.arising from the condition of a common element that the association is solely responsible for maintaining;

91 ESSB 5796 arising from the condition of a common element that the association is solely responsible for maintaining;

Sec.p.

97 SB 5796 Sec.

p.(b) Any agent, attorney, or other person assisting the declarant or dealer in preparing the public offering statement may rely upon information provided by the declarant or dealer without independent investigation.

92 ESSB 5796 (b) Any agent, attorney, or other person assisting the declarant or dealer in preparing the public offering statement may rely upon information provided by the declarant or dealer without independent investigation.

(4) If a unit is part of a common interest community and is part of any other real estate regime in connection with the sale of which the delivery of a public offering statement is required under the laws of this state, a single public offering statement conforming to thep. requirements of RCW 64.90.610, 64.90.615, and 64.90.620 as those requirements relate to each regime in which the unit is located, and to any other requirements imposed under the laws of this state, may be prepared and delivered in lieu of providing two or more public offering statements.

98 SB 5796 the requirements of RCW 64.90.610, 64.90.615, and 64.90.620 as those requirements relate to each regime in which the unit is located, and to any other requirements imposed under the laws of this state, may be prepared and delivered in lieu of providing two or more public offering statements.

(6) After the last to occur of any of the events described in subsection (5) of this section, a declarant or dealer must deliver to p.the purchaser of a unit ((owned by the declarant)) a resale certificate under RCW 64.90.640(2) together with:

93 ESSB 5796 the purchaser of a unit ((owned by the declarant)) a resale certificate under RCW 64.90.640(2) together with:

(c) A statement of any litigation brought by an owners(('))owners' association, unit owner, or governmental entity in which the declarant or dealer or any affiliate of the declarant or dealer has been a defendant arising out of the construction, sale, or administration of any common interest community within the state of Washington within the previous five years, together with the results of the litigation, if known;

and (e) Any other information and cross-references that the declarant or dealer believes will be helpful in describing the common interest communityp. to the purchaser, all of which may be included or not included at the option of the declarant or dealer.

99 SB 5796 community to the purchaser, all of which may be included or not included at the option of the declarant or dealer.

RCW 64.90.610 and 2019 c 238 s 212 are each amended to read as follows:

(1) A public offering statement must contain the following information:

(a) The name and address of the declarant;

(b) The name and address or location of the management company, if any;

(c) The relationship of the management company to the declarant, if any;

(d) The name and address of the common interest community;

p.

94 ESSB 5796 (e) A statement whether the common interest community is a condominium, cooperative, plat community, or miscellaneous community;

(f) A list, current as of the date the public offering statement is prepared, of up to the five most recent common interest communities in which at least one unit was sold by the declarant or an affiliate of the declarant within the past five years, including the names of the common interest communities and their addresses;

(g) The nature of the interest being offered for sale;

(h) A general description of the common interest community, including to the extent known to the declarant, the types and number of buildings that the declarant anticipates including in the common interest community and the declarant's schedule of commencement and completion of such buildings and principal common amenities;

(i) The status of construction of the units and common elements, including estimated dates of completion if not completed;

(j) The number of existing units in the common interest community;

(k) Brief descriptions of (i) the existing principal common amenities, (ii) those amenities that will be added to the common interest community, and (iii) those amenities that may be added to the common interest community;

(l) A brief description of the limited common elements, other than those described in RCW 64.90.210 (1)(b) and (3), that may be allocated to the units being offered for sale;

(m) The identification of any rights of persons other than unit owners to use any of the common elements, and a description of the terms of such use;

(n) The identification of any real property not in the common interest community that unit owners have a right to use and a description of the terms of such use;

(o) Any services the declarant provides or expenses that the declarant pays that are not reflected in the budget, but that the declarant expects may become at any subsequent time a common expense of the association, and the projected common expense attributable to each of those services or expenses;

(p) An estimate of any assessment or payment required by the declaration to be paid by the purchaser of a unit at closing;

(q) A brief description of any liens or monetary encumbrances on the title to the common elements that will not be discharged at closing;

p.

95 ESSB 5796 (r) A brief description or a copy of any express construction warranties to be provided to the purchaser;

(s) A statement, as required under RCW 64.35.210, as to whether the units or common elements of the common interest community are covered by a qualified warranty;

(t) If applicable to the common interest community, a statement whether the common interest community contains any multiunit residential building subject to chapter 64.55 RCW and, if so, whether:

(i) The building enclosure has been designed and inspected to the extent required under RCW 64.55.010 through 64.55.090;

and (ii) Any repairs required under RCW 64.55.090 have been made;

(u) A statement of any unsatisfied judgments or pending suits against the association and the status of any pending suits material to the common interest community of which the declarant has actual knowledge;

(v) A statement of any litigation brought by an owners((')) association, unit owner, or governmental entity in which the declarant or any affiliate of the declarant has been a defendant arising out of the construction, sale, or administration of any common interest community within the previous five years, together with the results of the litigation, if known;

(w) A brief description of:

(i) Any restrictions on use or occupancy of the units contained in the governing documents;

(ii) Any restrictions on the renting or leasing of units by the declarant or other unit owners contained in the governing documents;

(iii) Any rights of first refusal to lease or purchase any unit or any of the common elements contained in the governing documents;

and (iv) Any restriction on the amount for which a unit may be sold or on the amount that may be received by a unit owner on sale;

(x) A description of the insurance coverage provided for the benefit of unit owners;

(y) Any current or expected fees or charges not included in the common expenses to be paid by unit owners for the use of the common elements and other facilities related to the common interest community, together with any fees or charges not included in the common expenses to be paid by unit owners to any master or other association;

p.

96 ESSB 5796 (z) The extent, if any, to which bonds or other assurances from third parties have been provided for completion of all improvements that the declarant is obligated to build pursuant to RCW 64.90.695;

(aa) In a cooperative, a statement whether the unit owners are entitled, for federal, state, and local income tax purposes, to a pass-through of any deductions for payments made by the association for real estate taxes and interest paid to the holder of a security interest encumbering the cooperative;

(bb) In a cooperative, a statement as to the effect on every unit owner's interest in the cooperative if the association fails to pay real estate taxes or payments due to the holder of a security interest encumbering the cooperative;

(cc) In a leasehold common interest community, a statement whether the expiration or termination of any lease may terminate the common interest community or reduce its size, the recording number of any such lease or a statement of where the complete lease may be inspected, the date on which such lease is scheduled to expire, a description of the real estate subject to such lease, a statement whether the unit owners have a right to redeem the reversion, a statement whether the unit owners have a right to remove any improvements at the expiration or termination of such lease, a statement of any rights of the unit owners to renew such lease, and a reference to the sections of the declaration where such information may be found;

(dd) A summary of, and information on how to obtain a full copy of, any reserve study and a statement as to whether or not it was prepared in accordance with RCW 64.90.545 and 64.90.550 or the governing documents;

(ee) A brief description of any arrangement described in RCW 64.90.110 binding the association;

(ff) The estimated current common expense liability for the units being offered;

(gg) Except for real property taxes, real property assessments and utility liens, any assessments, fees, or other charges known to the declarant and which, if not paid, may constitute a lien against any unit or common elements in favor of any governmental agency;

(hh) A brief description of any parts of the common interest community, other than the owner's unit, which any owner must maintain;

p.

97 ESSB 5796 (ii) Whether timesharing is permitted or prohibited, and, if permitted, a statement that the purchaser of a timeshare unit is entitled to receive the disclosure document required under chapter 64.36 RCW;

(jj) If the common interest community is subject to any special declarant rights, the information required under RCW 64.90.615;

(kk) Any liens on real estate to be conveyed to the association required to be disclosed pursuant to RCW 64.90.650(3)(b);

(ll) A list of any physical hazards known to the declarant that particularly affect the common interest community or the immediate vicinity in which the common interest community is located and which are not readily ascertainable by the purchaser;

(mm) Any building code violation of which the declarant has actual knowledge and which has not been corrected;

(nn) If the common interest community contains one or more conversion buildings, the information required under RCW 64.90.620 and 64.90.655(6)(a);

(oo) If the public offering statement is related to conveyance of a unit in a multiunit residential building as defined in RCW 64.55.010, for which the final certificate of occupancy was issued more than ((sixty)) 60 calendar months prior to the preparation of the public offering statement either:

A copy of a report prepared by an independent, licensed architect or engineer or a statement by the declarant based on such report that describes, to the extent reasonably ascertainable, the present condition of all structural components and mechanical and electrical installations of the conversion buildings material to the use and enjoyment of the conversion buildings;

(pp) Any other information and cross-references that the declarant believes will be helpful in describing the common interest community to the recipients of the public offering statement, all of which may be included or not included at the option of the declarant;

((and)) (qq) A description of any age-related occupancy restrictions affecting the common interest community;

and (rr) In a condominium, plat community, or miscellaneous community containing a unit not having horizontal boundaries described in the declaration, a statement whether the unit may be sold without consent of all the unit owners after termination of the common interest community under RCW 64.90.290.

p.

98 ESSB 5796 (2) The public offering statement must begin with notices substantially in the following forms and in conspicuous type:

(a) "RIGHT TO CANCEL.

(1) You are entitled to receive a copy of this public offering statement and all material amendments to this public offering statement before conveyance of your unit.

Under RCW 64.90.635, you have the right to cancel your contract for the purchase of your unit within seven days after first receiving this public offering statement.

If this public offering statement is first provided to you more than seven days before you sign your contract for the purchase of your unit, you have no right to cancel your contract.

If this public offering statement is first provided to you seven days or less before you sign your contract for the purchase of your unit, you have the right to cancel, before conveyance of the unit, the executed contract by delivering, no later than the seventh day after first receiving this public offering statement, a notice of cancellation pursuant to section (3) of this notice.

If this public offering statement is first provided to you less than seven days before the closing date for the conveyance of your unit, you may, before conveyance of your unit to you, extend the closing date to a date not more than seven days after you first received this public offering statement, so that you may have seven days to cancel your contract for the purchase of your unit.

(2) You have no right to cancel your contract upon receipt of an amendment to this public offering statement;

however, this does not eliminate any right to rescind your contract, due to the disclosure of the information in the amendment, that is otherwise available to you under generally applicable contract law.

(3) If you elect to cancel your contract pursuant to this notice, you may do so by hand-delivering notice of cancellation, or by mailing notice of cancellation by prepaid United States mail, to the seller at the address set forth in this public offering statement or at the address of the seller's registered agent for service of process.

The date of such notice is the date of receipt, if hand- delivered, or the date of deposit in the United States mail, if mailed.

Cancellation is without penalty, and all payments made to the seller by you before cancellation must be refunded promptly." (b) "OTHER DOCUMENTS CREATING BINDING LEGAL OBLIGATIONS.

This public offering statement is a summary of some of the significant aspects of purchasing a unit in this common interest community.

The governing documents and the purchase agreement are complex, contain p.