HB 1500 — Concerning resale certificates for units in common interest communities.

ENGROSSEDH-0497.1 SUBSTITUTE HOUSE BILL 1500 State of Washington 69th Legislature 2025 Regular Session By House Housing (originally sponsored by Representatives Reed, Entenman, Gregerson, Peterson, Fosse, Farivar, Doglio, Alvarado, Hill, Berry, Simmons, Ormsby, and Macri)Macri READRead FIRSTfirst TIMEtime 02/14/25.01/22/25.

Referred to Committee on Housing.

RCW 64.90.640 and 20252024 c 119321 s 29329 are each amended to read as follows:

(1) Except in the case of a sale when delivery of a public offering statement is required, or unless exempt under RCW 64.90.600(2)64.90.600(2), or unless the buyer of a unit within a common interest community has expressly waived the right to receive a resale certificate because it is unavailable as provided in RCW 64.90.600(4), a unit owner must furnish to a purchaser before execution of any contract for sale of a unit, or otherwise before conveyance, a resale certificate, signed by an officer or authorized agent of the association and based on the books and records of the association and the actual knowledge of the person signing the certificate, containing all of the following and the statement "NONE" or "RECORDS UNAVAILABLE" for each category of records that is not provided:

(b) With respect to the selling unit owner's unit, a statement setting forth the amount of any assessment currently due, any p.

1 ESHBHB 1500 (b) With respect to the selling unit owner's unit, a statement setting forth the amount of any assessment currently due, any delinquent assessments, and a statement of any special assessments that have been levied and have not been paid even though not yet due;

(h) The annual financial statement of the association, including the ((audit report if it has been prepared, for the year immediately preceding the current year)) most recent final financial audit report available and the current draft of a more recent report if available;

(o) A statement as to whether the board has received notice in a record from a governmental agency of any violation of environmental, p.

2 ESHBHB 1500 (o) A statement as to whether the board has received notice in a record from a governmental agency of any violation of environmental, health, or building codes with respect to the seller's unit, the limited common elements allocated to that unit, or any other portion of the common interest community that has not been cured;

(u) A copy of the declaration, the organizational documents, the rules or regulations of the association, all policies, procedures, and resolutions approved by the board that are currently in effect, the minutes of board meetings and association meetings, except for any information exempt from disclosure under RCW 64.90.495(3), for the last 12 months, ((a summary of)) the most current final reserve study for the association, the most recent draft of a newer reserve study if available, and any other information reasonably requested by mortgagees of prospective purchasers of units.

(x) A statement describing any requirements related to electric vehicle charging stations located in the unit or the limited common elements allocated to the unit, including application status, p.

3 ESHBHB 1500 elements allocated to the unit, including application status, insurance information, maintenance responsibilities, and any associated costs;

THE GOVERNING DOCUMENTS MAY PROHIBIT OWNERS FROM MAKING CHANGES TO THE UNIT WITHOUT REVIEW AND THE APPROVAL OF THE ASSOCIATION, AND MAY ALSO IMPOSE RESTRICTIONS ON THE USE OF (([THE])) THE UNIT, DISPLAY OF SIGNS, CERTAIN BEHAVIORS, AND OTHER ITEMS.

PURCHASERS OF THIS UNIT SHOULD CAREFULLY REVIEW THE FINANCIAL OBLIGATIONS OF MEMBERS OF THE ASSOCIATION, THE CURRENT STATE OF THE ASSOCIATION'S FINANCES, THE CURRENT RESERVE STUDY, IF ANY, THE GOVERNING DOCUMENTS, AND THE p.

4 ESHBHB 1500 RESERVE STUDY, IF ANY, THE GOVERNING DOCUMENTS, AND THE OTHER INFORMATION AVAILABLE IN THE RESALE CERTIFICATE.

(d) AFees unitfor ownercopying isand notproviding liabledocuments torequired theby purchaserthis forsection anymust erroneousbe informationdistinguished providedfrom, byseparately thestated associationfrom, and includedseparately inbilled thefrom, certificate.all other fees, fines, or assessments.

(3)(a)(e) A purchaserunit owner is not liable to the purchaser for any oferroneous information provided by the following:association and included in the certificate.

(3) A unit owner possessing current copies in electronic form of any documents specified by this section must provide them to a purchaser via electronic transmission at no cost.

(4)(a) A purchaser is not liable for any of the following:

and (ii) Any violation of the governing documents created by any alteration to a unit that, in the exercise of reasonable diligence, shouldp. have been known to the association or its authorized agent at the time of conveyance, but was not identified in the resale certificate.

(b)5 TheHB purchaser1500 mayshould cancelhave abeen contractknown forto the purchaseassociation ofor its authorized agent at the unittime withinof fiveconveyance, daysbut afterwas firstnot receivingidentified in the resale certificate.

p.(b) ((A unit owner is not liable to a purchaser for the failure or delay of the association to provide the certificate in a timely manner, but the purchase contract is voidable by the purchaser until the certificate has been provided and for five days thereafter or until conveyance, whichever occurs first.)) The purchaser may cancel a contract for the purchase of the unit within five days after first receiving the resale certificate.

5 ESHB 1500 If the resale certificate is first provided to a purchaser more than five days before execution of a contract for the purchase of a unit, the purchaser does not have the right under this section to cancel the executed contract.

(4)(a) An authorized agent that charges a fee for furnishing a resale certificate assumes all liability for the fees charged, and for the timeliness of delivery, accuracy, and completeness of the resale certificate.

(b) A unit owner may bring an action to enforce the requirements of this section related to the fees charged, timeliness of delivery, accuracy, and completeness of a resale certificate.

In such an action, the court must award reasonable attorneys' fees and costs and actual damages to any prevailing unit owner and may also impose a civil penalty against the association or its authorized agent responsible for the fees imposed, delivery, accuracy, and completeness of the resale certificate.

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