Common interest communities

AN ACT Relating to common interest communities; amending RCW 1
64.32.250, 64.32.260, 64.34.076, 64.38.095, 64.90.010, 64.90.015, 2
64.90.210, 64.90.300, 64.90.360, 64.90.365, 64.90.405, 64.90.410, 3
64.90.435, 64.90.445, 64.90.455, 64.90.475, 64.90.480, 64.90.485, 4
64.90.513, 64.90.525, 64.90.530, 64.90.535, 64.90.580, 64.90.600, 5
64.90.610, 64.90.635, 64.90.640, 64.90.665, and 61.24.030; adding a 6
new section to chapter 64.38 RCW; repealing RCW 64.32.290, 64.32.350, 7
64.34.332, 64.34.393, 64.34.395, 64.38.035, 64.38.062, 64.38.180, and 8
64.90.509; repealing 2024 c 337 s 4; providing effective dates; and 9
providing an expiration date. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:11
Sec. 1. RCW 64.32.250 and 1963 c 156 s 25 are each amended to 12
read as follows: 13
(1) All apartment owners, tenants of such owners, employees of 14
such owners and tenants, and any other person that may in any manner 15
use the property or any part thereof submitted to the provisions of 16
this chapter, shall be subject to this chapter and to the declaration 17
and bylaws of the association of apartment owners adopted pursuant to 18
the provisions of this chapter. 19
(2) All agreements, decisions and determinations made by the 20
association of apartment owners under the provisions of this chapter, 21
S-0030.8
SENATE BILL 5129
State of Washington 69th Legislature 2025 Regular Session
By Senators Pedersen, Harris, and Nobles
Prefiled 01/02/25. Read first time 01/13/25. Referred to Committee
on Housing.
p. 1 SB 5129
the declaration, or the bylaws and in accordance with the voting 1
percentages established in this chapter, the declaration, or the 2
bylaws, shall be deemed to be binding on all apartment owners.3
(3) In case of any conflict between Title 23B RCW or chapter 4
23.86, 24.03A, 24.06, or 25.15 RCW and this chapter, this chapter 5
controls.6
Sec. 2. RCW 64.32.260 and 2024 c 321 s 433 are each amended to 7
read as follows: 8
(1) This chapter does not apply to common interest communities as 9
defined in RCW 64.90.010: 10
(a) Created on or after July 1, 2018; or 11
(b) That have amended their governing documents to provide that 12
chapter 64.90 RCW will apply to the common interest community 13
pursuant to RCW 64.90.370. 14
(2) Pursuant to RCW 64.90.365, the following provisions of 15
chapter 64.90 RCW apply, and any inconsistent provisions of this 16
chapter do not apply, to a common interest community created before 17
July 1, 2018: 18
(a) RCW 64.90.370; 19
(b) RCW 64.90.405(1) (b) and (c); 20
(c) RCW 64.90.445;21
(d) RCW 64.90.480(10);22
(e) RCW 64.90.502;23
(f) RCW 64.90.513;24
(g) RCW 64.90.525; ((and25
(d))) (h) RCW 64.90.545; and26
(i) RCW 64.90.580. 27
Sec. 3. RCW 64.34.076 and 2024 c 321 s 434 are each amended to 28
read as follows: 29
(1) This chapter does not apply to common interest communities as 30
defined in RCW 64.90.010: 31
(a) Created on or after July 1, 2018; or 32
(b) That have amended their governing documents to provide that 33
chapter 64.90 RCW will apply to the common interest community 34
pursuant to RCW 64.90.370. 35
(2) Pursuant to RCW 64.90.365, the following provisions of 36
chapter 64.90 RCW apply, and any inconsistent provisions of this 37
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chapter do not apply, to a common interest community created before 1
July 1, 2018: 2
(a) RCW 64.90.370; 3
(b) RCW 64.90.405(1) (b) and (c); 4
(c) RCW 64.90.445;5
(d) RCW 64.90.480(10);6
(e) RCW 64.90.502;7
(f) RCW 64.90.513;8
(g) RCW 64.90.525; ((and9
(d))) (h) RCW 64.90.545; and10
(i) RCW 64.90.580. 11
Sec. 4. RCW 64.38.095 and 2024 c 321 s 435 are each amended to 12
read as follows: 13
(1) This chapter does not apply to common interest communities as 14
defined in RCW 64.90.010: 15
(a) Created on or after July 1, 2018; or 16
(b) That have amended their governing documents to provide that 17
chapter 64.90 RCW will apply to the common interest community 18
pursuant to RCW 64.90.370. 19
(2) Pursuant to RCW 64.90.365, the following provisions of 20
chapter 64.90 RCW apply, and any inconsistent provisions of this 21
chapter do not apply, to a common interest community created before 22
July 1, 2018: 23
(a) RCW 64.90.370; 24
(b) RCW 64.90.405(1) (b) and (c); 25
(c) RCW 64.90.445;26
(d) RCW 64.90.480(10);27
(e) RCW 64.90.502;28
(f) RCW 64.90.513;29
(g) RCW 64.90.525; ((and30
(d))) (h) RCW 64.90.545; and31
(i) RCW 64.90.580. 32
NEW SECTION. Sec. 5. A new section is added to chapter 64.38 33
RCW to read as follows: 34
In case of any conflict between Title 23B RCW or chapter 23.86, 35
24.03A, 24.06, or 25.15 RCW and this chapter, this chapter controls.36
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Sec. 6. RCW 64.90.010 and 2024 c 321 s 301 are each amended to 1
read as follows: 2
The definitions in this section apply throughout this chapter 3
unless the context clearly requires otherwise. 4
(1) "Affiliate of a declarant" means any person who controls, is 5
controlled by, or is under common control with a declarant. For 6
purposes of this subsection: 7
(a) A person controls a declarant if the person:8
(i) Is a general partner, managing member, officer, director, or 9
employer of the declarant; 10
(ii) Directly or indirectly or acting in concert with one or more 11
other persons, or through one or more subsidiaries, owns, controls, 12
holds with power to vote, or holds proxies representing more than 20 13
percent of the voting interest in the declarant; 14
(iii) Controls in any manner the election or appointment of a 15
majority of the directors, managing members, or general partners of 16
the declarant; or 17
(iv) Has contributed more than 20 percent of the capital of the 18
declarant. 19
(b) A person is controlled by a declarant if the declarant:20
(i) Is a general partner, managing member, officer, director, or 21
employer of the person; 22
(ii) Directly or indirectly or acting in concert with one or more 23
other persons, or through one or more subsidiaries, owns, controls, 24
holds with power to vote, or holds proxies representing more than 20 25
percent of the voting interest in the person; 26
(iii) Controls in any manner the election or appointment of a 27
majority of the directors, managing members, or general partners of 28
the person; or 29
(iv) Has contributed more than 20 percent of the capital of the 30
person. 31
(c) Control does not exist if the powers described in this 32
subsection (1) are held solely as security for an obligation and are 33
not exercised. 34
(2) "Allocated interests" means the following interests allocated 35
to each unit: 36
(a) In a condominium, the undivided interest in the common 37
elements, the common expense liability, and votes in the association;38
(b) In a cooperative, the common expense liability, the ownership 39
interest, and votes in the association; and 40
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(c) In a plat community and miscellaneous community, the common 1
expense liability and the votes in the association, and also the 2
undivided interest in the common elements if owned in common by the 3
unit owners rather than an association. 4
(3) "Assessment" means all sums chargeable by the association 5
against a unit, including any assessments levied pursuant to RCW 6
64.90.480, fines or fees levied or imposed by the association 7
pursuant to this chapter or the governing documents, interest and 8
late charges on any delinquent account, and all costs of collection 9
incurred by the association in connection with the collection of a 10
delinquent owner's account, including reasonable attorneys' fees.11
(4) "Association" or "unit owners association" means the unit 12
owners association organized under RCW 64.90.400 and, to the extent 13
necessary to construe sections of this chapter made applicable to 14
common interest communities pursuant to RCW 64.90.365, 64.90.090, or 15
64.90.370, the association organized or created to administer such 16
common interest communities. 17
(5) "Ballot" means a record designed to cast or register a vote 18
or consent in a form provided or accepted by the association.19
(6) "Board" means the body, regardless of name, designated in the 20
declaration, map, or organizational documents, with primary authority 21
to manage the affairs of the association. 22
(7) "Common elements" means: 23
(a) In a condominium or cooperative, all portions of the common 24
interest community other than the units; 25
(b) In a plat community or miscellaneous community, any real 26
estate other than a unit within a plat community or miscellaneous 27
community that is owned or leased either by the association or in 28
common by the unit owners rather than an association; and29
(c) In all common interest communities, any other interests in 30
real estate for the benefit of any unit owners that are subject to 31
the declaration. 32
(8) "Common expense" means ((any expense of the association, 33
including allocations to reserves, allocated to all of the unit 34
owners in accordance with common expense liability )) expenditures 35
made by, or financial liabilities of, the association, together with 36
any allocations to reserves. 37
(9) "Common expense liability" means the liability for common 38
expenses allocated to each unit pursuant to RCW 64.90.235.39
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(10) "Common interest community" means real estate described in a 1
declaration with respect to which a person, by virtue of the person's 2
ownership of a unit, is obligated to pay for a share of real estate 3
taxes, insurance premiums, maintenance, or improvement of, or 4
services or other expenses related to, common elements, other units, 5
or other real estate described in the declaration. "Common interest 6
community" does not include an arrangement described in RCW 64.90.110 7
or 64.90.115. A common interest community may be a part of another 8
common interest community. 9
(11) "Condominium" means a common interest community in which 10
portions of the real estate are designated for separate ownership and 11
the remainder of the real estate is designated for common ownership 12
solely by the owners of those portions. A common interest community 13
is not a condominium unless the undivided interests in the common 14
elements are vested in the unit owners. 15
(12) "Condominium notice" means the notice given to tenants 16
pursuant to subsection (13)(c) of this section. 17
(13)(a) "Conversion building" means a building:18
(i) That at any time before creation of the common interest 19
community was lawfully occupied wholly or partially by a tenant or 20
subtenant for residential purposes pursuant to a rental agreement, 21
oral or written, express or implied, who did not receive a 22
((condominium)) notice pursuant to (c) of this subsection prior to 23
entering into the rental agreement or lawfully taking occupancy, 24
whichever event occurred first; or 25
(ii) That at any time within the 12 months preceding the first 26
acceptance of an agreement with the declarant to convey, or the first 27
conveyance of, any unit in the building, whichever event occurred 28
first, to any person who was not a declarant or dealer, or affiliate 29
of a declarant or dealer, was lawfully occupied wholly or partially 30
by a tenant or subtenant for residential purposes pursuant to a 31
rental agreement, oral or written, express or implied, who did not 32
receive a condominium notice prior to entering into the rental 33
agreement or lawfully taking occupancy, whichever event occurred 34
first. 35
(b) A building in a common interest community is a conversion 36
building only if: 37
(i) The building contains more than two attached dwelling units 38
as defined in RCW 64.55.010(1); and 39
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(ii) Acceptance of an agreement to convey, or conveyance of, any 1
unit in the building to any person who was not a declarant or dealer, 2
or affiliate of a declarant or dealer, did not occur prior to July 1, 3
2018. 4
(c) The notice referred to in (a)(i) and (ii) of this subsection 5
must be in writing and must state: "The unit you will be occupying 6
is, or may become, part of a common interest community and subject to 7
sale." 8
(14) "Convey" or "conveyance" means, with respect to a unit, any 9
transfer of ownership of the unit, including a transfer by deed or by 10
real estate contract and, with respect to a unit in a leasehold 11
common interest community or a proprietary lease in a cooperative, a 12
transfer by lease or assignment of the unit, but does not include the 13
creation, transfer, or release of a security interest.14
(15) "Cooperative" means a common interest community in which the 15
real estate is owned by an association, each member of which is 16
entitled by virtue of the member's ownership interest in the 17
association and by a proprietary lease to exclusive possession of a 18
unit. 19
(16) "Dealer" means a person who, together with such person's 20
affiliates, owns or has a right to acquire either six or more units 21
in a common interest community or 50 percent or more of the units in 22
a common interest community containing more than two units.23
(17) "Declarant" means: 24
(a) Any person who executes as declarant a declaration;25
(b) Any person who reserves or succeeds to any special declarant 26
right in a declaration; 27
(c) Any person who exercises special declarant rights or to whom 28
special declarant rights are transferred of record. The holding or 29
exercise of rights to maintain sales offices, signs advertising the 30
common interest community, and models, and related right of access, 31
does not confer the status of being a declarant; or32
(d) Any person who is the owner of a fee interest in the real 33
estate that is subjected to the declaration at the time of the 34
recording of an instrument pursuant to RCW 64.90.425 and who directly 35
or through one or more affiliates is materially involved in the 36
construction, marketing, or sale of units in the common interest 37
community created by the recording of the instrument.38
(18) "Declarant control" means the right of the declarant or 39
persons designated by the declarant to appoint or remove any officer 40
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or board member of the association or to veto or approve a proposed 1
action of any board or association, pursuant to RCW 64.90.415(1)(a).2
(19) "Declaration" means the instrument, however denominated, 3
that creates a common interest community, including any amendments to 4
the instrument. 5
(20) "Development rights" means any right or combination of 6
rights reserved by a declarant in the declaration to:7
(a) Add real estate or improvements to a common interest 8
community; 9
(b) Create units, common elements, or limited common elements 10
within a common interest community; 11
(c) Subdivide or combine units or convert units into common 12
elements; 13
(d) Withdraw real estate from a common interest community; or14
(e) Reallocate limited common elements with respect to units that 15
have not been conveyed by the declarant. 16
(21) "Effective age" means the difference between the useful life 17
and remaining useful life. 18
(22) "Electronic" means relating to technology having electrical, 19
digital, magnetic, wireless, optical, electromagnetic, or similar 20
capabilities. 21
(23) "Electronic transmission" or "electronically transmitted" 22
means any electronic communication (a) not directly involving the 23
physical transfer of a record in a tangible medium and (b) that may 24
be retained, retrieved, and reviewed by the sender and the recipient 25
of the communication, and that may be directly reproduced in a 26
tangible medium by a sender and recipient. 27
(24) "Eligible mortgagee" means the holder of a security interest 28
on a unit that has filed with the secretary of the association a 29
written request that it be given copies of notices of any action by 30
the association that requires the consent of mortgagees.31
(25) "Foreclosure" means a statutory forfeiture or a judicial or 32
nonjudicial foreclosure of a security interest or a deed or other 33
conveyance in lieu of a security interest. 34
(26) "Full funding plan" means a reserve funding goal of 35
achieving 100 percent fully funded reserves by the end of the 30-year 36
study period described under RCW 64.90.550, in which the reserve 37
account balance equals the sum of the estimated costs required to 38
maintain, repair, or replace the deteriorated portions of all reserve 39
components. 40
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(27) "Fully funded balance" means the current value of the 1
deteriorated portion, not the total replacement value, of all the 2
reserve components. The fully funded balance for each reserve 3
component is calculated by multiplying the current replacement cost 4
of that reserve component by its effective age, then dividing the 5
result by that reserve component's useful life. The sum total of all 6
reserve components' fully funded balances is the association's fully 7
funded balance. 8
(28) "Governing documents" means the organizational documents, 9
map, declaration, rules, or other written instrument by which the 10
association has the authority to exercise any of the powers provided 11
for in this chapter or to manage, maintain, or otherwise affect the 12
property under its jurisdiction. 13
(29) "Identifying number" means a symbol or address that 14
identifies only one unit or limited common element in a common 15
interest community. 16
(30) "Leasehold common interest community" means a common 17
interest community in which all or a portion of the real estate is 18
subject to a lease the expiration or termination of which will 19
terminate the common interest community or reduce its size.20
(31) "Limited common element" means a portion of the common 21
elements allocated by the declaration or by operation of RCW 22
64.90.210 (1)(b) or (3) for the exclusive use of one or more, but 23
fewer than all, of the unit owners. 24
(32) "Map" means: (a) With respect to a plat community, the plat 25
as defined in RCW 58.17.020 and complying with the requirements of 26
Title 58 RCW, and (b) with respect to a condominium, cooperative, or 27
miscellaneous community, a map prepared in accordance with the 28
requirements of RCW 64.90.245. 29
(33) "Master association" means: 30
(a) A unit owners association that serves more than one common 31
interest community; or 32
(b) An organization that holds a power delegated under RCW 33
64.90.300(1)(a). 34
(34) "Miscellaneous community" means a common interest community 35
in which units are lawfully created in a manner not inconsistent with 36
chapter 58.17 RCW and that is not a condominium, cooperative, or plat 37
community. 38
(35) "Nominal reserve costs" means that the current estimated 39
total replacement costs of the reserve components are less than 50 40
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percent of the annual budgeted expenses of the association, excluding 1
contributions to the reserve fund, for a condominium or cooperative 2
containing horizontal unit boundaries, and less than 75 percent of 3
the annual budgeted expenses of the association, excluding 4
contributions to the reserve fund, for all other common interest 5
communities. 6
(36) "Organizational documents" means the instruments filed with 7
the secretary of state to create an entity and the instruments 8
governing the internal affairs of the entity including, but not 9
limited to, any articles of incorporation, certificate of formation, 10
bylaws, and limited liability company or partnership agreement.11
(37) "Person" means an individual, corporation, business trust, 12
estate, the trustee or beneficiary of a trust that is not a business 13
trust, partnership, limited liability company, association, joint 14
venture, public corporation, government, or governmental subdivision, 15
agency, or instrumentality, or any other legal entity.16
(38) "Plat community" means a common interest community in which 17
units have been created by subdivision or short subdivision as both 18
are defined in RCW 58.17.020 and in which the boundaries of units are 19
established pursuant to chapter 58.17 RCW. 20
(39) "Proprietary lease" means a written and recordable lease 21
that is executed and acknowledged by the association as lessor and 22
that otherwise complies with requirements applicable to a residential 23
lease of more than one year and pursuant to which a member is 24
entitled to exclusive possession of a unit in a cooperative. A 25
proprietary lease governed under this chapter is not subject to 26
chapter 59.18 RCW except as provided in the declaration.27
(40) "Purchaser" means a person, other than a declarant or a 28
dealer, which by means of a voluntary transfer acquires a legal or 29
equitable interest in a unit other than as security for an 30
obligation. 31
(41) "Qualified financial institution" means a bank, savings 32
association, or credit union whose deposits are insured by the 33
federal government. 34
(42) "Real estate" means any leasehold or other estate or 35
interest in, over, or under land, including structures, fixtures, and 36
other improvements and interests that by custom, usage, or law pass 37
with a conveyance of land though not described in the contract of 38
sale or instrument of conveyance. "Real estate" includes parcels with 39
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or without upper or lower boundaries and spaces that may be filled 1
with air or water. 2
(43) "Real estate contract" has the same meaning as defined in 3
RCW 61.30.010. 4
(44) "Record," when used as a noun, means information inscribed 5
on a tangible medium or contained in an electronic transmission.6
(45) "Remaining useful life" means the estimated time, in years, 7
before a reserve component will require major maintenance, repair, or 8
replacement to perform its intended function. 9
(46) "Replacement cost" means the estimated total cost to 10
maintain, repair, or replace a reserve component to its original 11
functional condition. 12
(47) "Reserve component" means a physical component of the common 13
interest community which the association is obligated to maintain, 14
repair, or replace, which has an estimated useful life of less than 15
30 years, and for which the cost of such maintenance, repair, or 16
replacement is infrequent, significant, and impractical to include in 17
an annual budget. 18
(48) "Reserve study professional" means an independent person who 19
is suitably qualified by knowledge, skill, experience, training, or 20
education to prepare a reserve study in accordance with RCW 64.90.545 21
and 64.90.550. For the purposes of this subsection, "independent" 22
means a person who is not an employee, officer, or director, and has 23
no pecuniary interest in the declarant, association, or any other 24
party for whom the reserve study is prepared. 25
(49) "Residential purposes" means use for dwelling or 26
recreational purposes, or both. 27
(50) "Rule" means a policy, guideline, restriction, procedure, or 28
regulation of an association, however denominated, that is not set 29
forth in the declaration or organizational documents.30
(51) "Security interest" means an interest in real estate or 31
personal property, created by contract or conveyance that secures 32
payment or performance of an obligation. "Security interest" includes 33
a lien created by a mortgage, deed of trust, real estate contract, 34
lease intended as security, assignment of lease or rents intended as 35
security, pledge of an ownership interest in an association, and any 36
other consensual lien or title retention contract intended as 37
security for an obligation. 38
(52) "Special declarant rights" means rights reserved for the 39
benefit of a declarant to: 40
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(a) Complete any improvements the declarant is not obligated to 1
make that are indicated on the map or described in the declaration or 2
the public offering statement; 3
(b) Exercise any development right, pursuant to RCW 64.90.250;4
(c) Maintain sales offices, management offices, signs advertising 5
the common interest community, and models, pursuant to RCW 64.90.275;6
(d) Use easements through the common elements for the purpose of 7
making improvements within the common interest community or within 8
real estate that may be added to the common interest community, 9
pursuant to RCW 64.90.280; 10
(e) Make the common interest community subject to a master 11
association, pursuant to RCW 64.90.300; 12
(f) Merge or consolidate a common interest community with another 13
common interest community, pursuant to RCW 64.90.310;14
(g) Appoint or remove any officer or board member of the 15
association or any master association or to veto or approve a 16
proposed action of any board or association, pursuant to RCW 17
64.90.415(1); 18
(h) Control any construction, design review, or aesthetic 19
standards committee or process, pursuant to RCW 64.90.505(3);20
(i) Attend meetings of the unit owners and, except during an 21
executive session, the board, pursuant to RCW 64.90.445;22
(j) Have access to the records of the association to the same 23
extent as a unit owner, pursuant to RCW 64.90.495.24
(53) "Specially allocated expense" means any common expense of 25
the association, including allocations to reserves, allocated on a 26
basis other than the common expense liability pursuant to RCW 27
64.90.480. 28
(54) "Survey" has the same meaning as defined in RCW 58.09.020.29
(55) "Tangible medium" means a writing, copy of a writing, 30
facsimile, or a physical reproduction, each on paper or on other 31
tangible material. 32
(56) "Timeshare" has the same meaning as defined in RCW 33
64.36.010. 34
(57) "Transition meeting" means the meeting held pursuant to RCW 35
64.90.415(4). 36
(58)(a) "Unit" means a physical portion of the common interest 37
community designated for separate ownership or occupancy, the 38
boundaries of which are described pursuant to RCW 64.90.225(1)(d).39
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(b) If a unit in a cooperative is owned by a unit owner or is 1
sold, conveyed, voluntarily or involuntarily encumbered, or otherwise 2
transferred by a unit owner, the interest in that unit that is owned, 3
sold, conveyed, encumbered, or otherwise transferred is the right to 4
possession of that unit under a proprietary lease, coupled with the 5
allocated interests of that unit, and the association's interest in 6
that unit is not affected. 7
(c) Except as provided in the declaration, a mobile home or 8
manufactured home for which title has been eliminated pursuant to 9
chapter 65.20 RCW is part of the unit described in the title 10
elimination documents. 11
(59)(a) "Unit owner" means (i) a declarant or other person that 12
owns a unit or (ii) a lessee of a unit in a leasehold common interest 13
community whose lease expires simultaneously with any lease the 14
expiration or termination of which will remove the unit from the 15
common interest community, but does not include a person having an 16
interest in a unit solely as security for an obligation.17
(b) "Unit owner" also means the vendee, not the vendor, of a unit 18
under a recorded real estate contract. 19
(c) In a condominium, plat community, or miscellaneous community, 20
the declarant is the unit owner of any unit created by the 21
declaration. In a cooperative, the declarant is treated as the unit 22
owner of any unit to which allocated interests have been allocated 23
until that unit has been conveyed to another person.24
(60) "Useful life" means the estimated time during which a 25
reserve component is expected to perform its intended function 26
without major maintenance, repair, or replacement.27
(61) "Writing" does not include an electronic transmission.28
(62) "Written" means embodied in a tangible medium.29
Sec. 7. RCW 64.90.015 and 2018 c 277 s 103 are each amended to 30
read as follows: 31
(1) Except as expressly provided in this chapter, the effect of 32
the provisions of this chapter may not be varied by agreement ((,)); 33
the governing documents may not vary a provision of this chapter that 34
gives a right to or imposes an obligation or liability on a unit 35
owner, declarant, association, or board; and rights conferred by this 36
chapter may not be waived. Except as provided otherwise in RCW 37
64.90.110, a declarant may not act under a power of attorney, or use 38
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any other device, to evade the limitations or prohibitions of this 1
chapter or the declaration. 2
(2) The governing documents may vary the following provisions as 3
provided in the provision:4
(a) RCW 64.90.020(1), concerning classification of a cooperative 5
unit as real estate or personal property;6
(b) RCW 64.90.030 (2) and (3), concerning reallocation of 7
allocated interests and allocation of proceeds after a taking by 8
eminent domain;9
(c) RCW 64.90.360(4), 64.90.370, and 64.90.100, concerning 10
elections regarding applicability of this chapter;11
(d) RCW 64.90.100 (1), (2), and (3), concerning communities 12
restricted to nonresidential uses;13
(e) RCW 64.90.200(3) (a) and (b), concerning the timing of the 14
conveyance of common elements to the association, and the vesting of 15
real estate owned by the association on termination;16
(f) RCW 64.90.210, concerning boundaries between units and common 17
elements;18
(g) RCW 64.90.240 (2) and (3), concerning reallocation of limited 19
common elements;20
(h) RCW 64.90.245(11), concerning horizontal boundaries of units;21
(i) RCW 64.90.255, concerning alterations of units and common 22
elements made by unit owners;23
(j) RCW 64.90.260 (1) and (2), concerning relocation of 24
boundaries between units;25
(k) RCW 64.90.265 (1) and (2), concerning subdivision and 26
combination of units;27
(l) RCW 64.90.275, concerning sales offices, management offices, 28
models, and signs maintained by a declarant;29
(m) RCW 64.90.280 (1) and (3), concerning easements through, and 30
rights to use, common elements;31
(n) RCW 64.90.285 (1) and (8), concerning the percentage of votes 32
and consents required to amend the declaration;33
(o) RCW 64.90.290 (1) and (8), concerning the percentage of votes 34
required to terminate a common interest community and priority of 35
creditors of a cooperative;36
(p) RCW 64.90.360(4)(a), concerning small communities;37
(q) RCW 64.90.405 (4)(c) and (5)(c), concerning an association's 38
assignment of rights to future income, the number of votes required 39
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to reject a proposal to borrow funds, and the right to terminate a 1
lease or evict a tenant; 2
(r) RCW 64.90.410 (1) and (2), concerning the board acting on 3
behalf of the association and the election of officers by the board;4
(s) RCW 64.90.420(2), concerning costs of audits;5
(t) RCW 64.90.435(1)(b), concerning election of officers by unit 6
owners;7
(u) RCW 64.90.440 (1) and (4), concerning responsibility for 8
maintenance, repair, and replacement of units and common elements and 9
treatment of income or proceeds from real estate subject to 10
development rights;11
(v) RCW 64.90.445 (1)(b) and (2)(h), concerning meetings;12
(w) RCW 64.90.450, concerning quorum requirements for meetings;13
(x) RCW 64.90.455 (3), (4), (5), and (8), concerning unit owner 14
voting;15
(y) RCW 64.90.465 (1), (2), and (7), concerning the percentage of 16
votes required to convey or encumber common elements and the effect 17
of conveyance or encumbrance of common elements;18
(z) RCW 64.90.470 (2) and (11), concerning insurance where the 19
units are attached, and insurance for a nonresidential common 20
interest community;21
(aa) RCW 64.90.475(2), concerning payment of surplus funds of the 22
association;23
(bb) RCW 64.90.485(7), concerning priority and foreclosure of 24
liens held by two or more associations;25
(cc) RCW 64.90.505 (1) and (3), concerning the adoption of rules;26
(dd) RCW 64.90.520(4), concerning the board's ability to remove 27
an officer elected by the board;28
(ee) RCW 64.90.525(1), concerning the percentage of votes 29
required to reject a budget; and30
(ff) RCW 64.90.545(2), concerning applicability of reserve study 31
requirements to certain types of common interest communities.32
Sec. 8. RCW 64.90.210 and 2018 c 277 s 203 are each amended to 33
read as follows: 34
(((1))) Except as provided by the declaration or, in the case of 35
a plat community or miscellaneous community, by the map:36
(1)(a) If walls, floors, or ceilings are designated as boundaries 37
of a unit, all lath, furring, wallboard, plasterboard, plaster, 38
paneling, tiles, wallpaper, paint, finished flooring, and any other 39
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materials constituting any part of the finished surfaces thereof are 1
a part of the unit, and all other portions of the walls, floors, or 2
ceilings are a part of the common elements. 3
(b) If any chute, flue, duct, wire, conduit, bearing wall, 4
bearing column, or any other fixture lies partially within and 5
partially outside the designated boundaries of a unit, any portion 6
thereof serving only that unit is a limited common element allocated 7
solely to that unit, and any portion thereof serving more than one 8
unit or any portion of the common elements is a part of the common 9
elements. 10
(2) Subject to subsection (1)(b) of this section, all spaces, 11
interior partitions, and other fixtures and improvements within the 12
boundaries of a unit are a part of the unit. 13
(3) Any fireplaces, shutters, awnings, window boxes, doorsteps, 14
stoops, porches, balconies, decks, patios, and all exterior doors and 15
windows or other fixtures designed to serve a single unit, but 16
located outside the unit's boundaries, are limited common elements 17
allocated exclusively to that unit. 18
Sec. 9. RCW 64.90.300 and 2024 c 321 s 203 are each amended to 19
read as follows: 20
(1) A declaration may: 21
(a) Delegate a power under RCW 64.90.405(((1))) from the unit 22
owners association to a master association; 23
(b) Provide for exercise of the powers under RCW 64.90.405(((1))) 24
by a master association that also serves as the unit owners 25
association for the common interest community; and26
(c) Reserve a special declarant right to make the common interest 27
community subject to a master association. 28
(2) All provisions of this chapter applicable to unit owners 29
associations apply to the master association, except as modified by 30
this section. 31
(3) A unit owners association may delegate a power under RCW 32
64.90.405(((1))) to a master association without amending the 33
declaration. The board of the unit owners association shall give 34
notice to the unit owners of a proposed delegation and include a 35
statement that unit owners may object in a record to the delegation 36
not later than 30 days after delivery of the notice. The delegation 37
becomes effective if the board does not receive a timely objection 38
from unit owners of units to which at least 10 percent of the votes 39
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in the association are allocated. If the board receives a timely 1
objection by at least 10 percent of the votes, the delegation becomes 2
effective only if the unit owners vote under RCW 64.90.455 to approve 3
the delegation by a majority vote. The delegation is not effective 4
until the master association accepts the delegation.5
(4) A delegation under subsection (1)(a) of this section may be 6
revoked only by an amendment to the declaration. 7
(5) At a meeting of the unit owners which lists in the notice of 8
the meeting the subject of delegation of powers from the board to a 9
master association, the unit owners may revoke the delegation by a 10
majority of the votes cast at the meeting. The effect of revocation 11
on the rights and obligations of parties under a contract between a 12
unit owners association and a master association is determined by law 13
of this state other than this chapter. 14
(6) Unless it is acting in the capacity of a unit owners 15
association, a master association may exercise the powers set forth 16
in RCW 64.90.405(1)(b) only to the extent expressly permitted in the 17
declarations of common interest communities that are part of the 18
master association or expressly described in the delegations of power 19
from those common interest communities to the master association.20
(7) After a unit owners association delegates a power to a master 21
association, the unit owners association, its board members, and its 22
officers are not liable for an act or omission of the master 23
association with respect to the delegated power. 24
(8) The rights and responsibilities of unit owners with respect 25
to the unit owners association set forth in RCW 64.90.410, 64.90.445, 26
64.90.450, 64.90.455, 64.90.465, and 64.90.505 apply in the conduct 27
of the affairs of a master association only to persons who elect the 28
board of a master association, whether or not those persons are 29
otherwise unit owners within the meaning of this chapter.30
(9) Not later than 90 days after termination of a period of 31
declarant control of the master association, the board of the master 32
association must be elected in one of the following ways:33
(a) The unit owners of all common interest communities subject to 34
the master association may elect all members of the master 35
association's board; or 36
(b) The unit owners in, or the board of, each common interest 37
community subject to the master association elect one or more members 38
of the master association's board if the instruments governing the 39
master association apportion the seats on the board to each common 40
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interest community in a manner roughly proportional to the number of 1
units in each common interest community. 2
(10) A period of declarant control of the master association 3
under subsection (9) of this section terminates not later than the 4
earlier of: 5
(a) The termination under RCW 64.90.415 of all periods of 6
declarant control of all common interest communities subject to the 7
master association under RCW 64.90.415; or 8
(b) 60 days after conveyance to unit owners other than a 9
declarant of 75 percent of the units that may be created in all 10
common interest communities subject to the master association.11
Sec. 10. RCW 64.90.360 and 2024 c 321 s 506 are each amended to 12
read as follows: 13
(1) Except as provided otherwise in this section, RCW 64.90.365 14
and 64.90.375, this chapter applies to all common interest 15
communities. 16
(2) Before January 1, 2028, this chapter applies only to:17
(a) A common interest community created on or after July 1, 2018; 18
and 19
(b) A common interest community created before July 1, 2018, that 20
amends its declaration to elect to be subject to this chapter.21
(3) Chapters 58.19, 64.32, 64.34, and 64.38 RCW:22
(a) Do not apply to common interest communities subject to this 23
chapter; and 24
(b) Apply to a common interest community created before July 1, 25
2018, only until the community becomes subject to this chapter.26
(4)(a) Unless the declaration provides that this entire chapter 27
is applicable, a plat community or miscellaneous community that is 28
not subject to any development right is subject only to RCW 29
64.90.010, 64.90.015, 64.90.020, 64.90.025, ((and)) 64.90.030, 30
64.90.050, 64.90.060, 64.90.065, 64.90.070, 64.90.085, 64.90.100, 31
64.90.110, 64.90.210, 64.90.225, 64.90.230, 64.90.235, 64.90.240, 32
64.90.245, 64.90.255, 64.90.260, 64.90.265, 64.90.280, 64.90.285, 33
64.90.290, 64.90.300, 64.90.340, 64.90.350, 64.90.360, 64.90.400, 34
64.90.405, 64.90.410, 64.90.415, 64.90.420, 64.90.435, 64.90.445, 35
64.90.450, 64.90.455, 64.90.465, 64.90.480, 64.90.485, 64.90.490, 36
64.90.495, 64.90.502, 64.90.505, 64.90.510, 64.90.511, 64.90.5111, 37
64.90.512, 64.90.513, 64.90.515, 64.90.518, 64.90.520, 64.90.525, 38
64.90.530, 64.90.535, 64.90.540, 64.90.545, 64.90.550, 64.90.555, 39
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64.90.560, 64.90.565, 64.90.570, 64.90.575, 64.90.580, 64.90.585, 1
64.90.640, and 64.90.685, if the community: (i) Contains no more than 2
((12)) 50 units; and (ii) provides in its declaration that the annual 3
average assessment of all units restricted to residential purposes, 4
exclusive of optional user fees ((and any insurance premiums paid by 5
the association )), may not exceed (($300)) $1,000, as adjusted 6
pursuant to RCW 64.90.065. 7
(b) The exemption provided in this subsection applies only if:8
(i) The declarant reasonably believes in good faith that the 9
maximum stated assessment will be sufficient to pay the expenses of 10
the association for the community; and 11
(ii) The declaration provides that the assessment may not be 12
increased above the limitation in (a)(ii) of this subsection prior to 13
the transition meeting without the consent of unit owners, other than 14
the declarant, holding 90 percent of the votes in the association.15
(5) Before January 1, 2028, except as otherwise provided in RCW 16
((64.90.080)) 64.90.365, this chapter does not apply to any common 17
interest community created within this state on or after July 1, 18
2018, if: 19
(a) That common interest community is made part of a common 20
interest community created in this state prior to July 1, 2018, 21
pursuant to a right expressly set forth in the declaration of the 22
preexisting common interest community; and 23
(b) The declaration creating that common interest community 24
expressly subjects that common interest community to the declaration 25
of the preexisting common interest community pursuant to such right 26
described in (a) of this subsection. 27
Sec. 11. RCW 64.90.365 and 2024 c 321 s 508 are each amended to 28
read as follows: 29
(1) Except for a plat community or miscellaneous community 30
described in RCW 64.90.360(4) and a nonresidential or mixed-use 31
common interest community described in RCW 64.90.100, the following 32
sections apply to a common interest community created before July 1, 33
2018, and any inconsistent provisions of chapter 58.19, 64.32, 64.34, 34
or 64.38 RCW do not apply: 35
(a) RCW 64.90.370; 36
(b) RCW 64.90.405(1) (b) and (c); 37
(c) RCW 64.90.445;38
(d) RCW 64.90.480(10);39
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(e) RCW 64.90.502;1
(f) RCW 64.90.513;2
(g) RCW 64.90.525; 3
(((d))) (h) RCW 64.90.545; ((and4
(e))) (i) RCW 64.90.580; and5
(j) RCW 64.90.010, to the extent necessary to construe this 6
subsection. 7
(2) Except to the extent provided in this subsection, the 8
sections listed in subsection (1) of this section apply only to 9
events and circumstances occurring on or after July 1, 2018, and do 10
not invalidate existing provisions of the governing documents of 11
those common interest communities existing on July 1, 2018. To 12
protect the public interest, RCW ((64.90.095)) 64.90.370 and 13
64.90.525 supersede existing provisions of the governing documents of 14
all plat communities and miscellaneous communities previously subject 15
to chapter 64.38 RCW. 16
(3) This section does not apply to a common interest community 17
that becomes subject to this chapter under RCW 64.90.360(1) or by 18
election under RCW 64.90.360(4), 64.90.370(1)(b), or 64.90.100.19
Sec. 12. RCW 64.90.405 and 2024 c 321 s 311 are each amended to 20
read as follows: 21
(1) An association must: 22
(a) Adopt organizational documents; 23
(b) Adopt budgets as provided in RCW 64.90.525;24
(c) Impose assessments for common expenses ((and specially 25
allocated expenses )) on the unit owners as provided in RCW 26
64.90.480(1) and 64.90.525; 27
(d) Prepare financial statements as provided in RCW 64.90.530; 28
and 29
(e) Deposit and maintain the funds of the association in accounts 30
as provided in RCW 64.90.530. 31
(2) Except as provided otherwise in subsection (4) of this 32
section and subject to the provisions of the declaration, the 33
association may: 34
(a) Amend organizational documents and adopt and amend rules;35
(b) Amend budgets under RCW 64.90.525; 36
(c) Hire and discharge managing agents and other employees, 37
agents, and independent contractors; 38
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(d) Institute, defend, or intervene in litigation or in 1
arbitration, mediation, or administrative proceedings or any other 2
legal proceeding in its own name on behalf of itself or two or more 3
unit owners on matters affecting the common interest community;4
(e) Make contracts and incur liabilities subject to subsection 5
(4) of this section; 6
(f) Regulate the use, maintenance, repair, replacement, and 7
modification of common elements; 8
(g) Cause additional improvements to be made as a part of the 9
common elements; 10
(h) Acquire, hold, encumber, and convey in its own name any 11
right, title, or interest to real estate or personal property, but:12
(i) Common elements in a condominium, plat community, or 13
miscellaneous community may be conveyed or subjected to a security 14
interest pursuant to RCW 64.90.465 only; and 15
(ii) Part of a cooperative may be conveyed, or all or part of a 16
cooperative may be subjected to a security interest pursuant to RCW 17
64.90.465 only; 18
(i) Grant easements, leases, and licenses through or over the 19
common elements, but a grant to a unit owner that benefits the unit 20
owner's unit is allowed only by reallocation under RCW 64.90.240(3) 21
of the common elements to a limited common element, and petition for 22
or consent to the vacation of streets and alleys. Notwithstanding the 23
foregoing, a reallocation shall not be required in regard to the 24
installation of an electric vehicle charging station on the common 25
elements; 26
(j) Impose and collect any reasonable payments, fees, or charges 27
for: 28
(i) The use, rental, or operation of the common elements, other 29
than limited common elements described in RCW 64.90.210 (1)(b) and 30
(3); 31
(ii) Services provided to unit owners; and 32
(iii) Moving in, moving out, or transferring title to units to 33
the extent provided for in the declaration; 34
(k) Collect assessments and impose and collect reasonable charges 35
for late payment of assessments; 36
(l) Enforce the governing documents and, after notice and 37
opportunity to be heard, impose and collect reasonable fines for 38
violations of the governing documents in accordance with a previously 39
established schedule of fines adopted by the board of directors and 40
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furnished to the owners pursuant to the requirements for notice in 1
RCW 64.90.505; 2
(m) Impose and collect reasonable charges for the preparation and 3
recordation of amendments to the declaration, resale certificates 4
required under RCW 64.90.640, lender questionnaires, or statements of 5
unpaid assessments; 6
(n) Provide for the indemnification of its officers and board 7
members, to the extent provided in RCW 23B.17.030; 8
(o) Maintain directors' and officers' liability insurance;9
(p) Subject to subsection (4) of this section, assign its right 10
to future income, including the right to receive assessments;11
(q) Join in a petition for the establishment of a parking and 12
business improvement area, participate in the ratepayers' board or 13
other advisory body set up by the legislative authority for operation 14
of a parking and business improvement area, and pay special 15
assessments levied by the legislative authority on a parking and 16
business improvement area encompassing the condominium property for 17
activities and projects that benefit the condominium directly or 18
indirectly; 19
(r) Establish and administer a reserve account as described in 20
RCW 64.90.535; 21
(s) Prepare a reserve study as described in RCW 64.90.545;22
(t) Exercise any other powers conferred by the declaration or 23
organizational documents; 24
(u) Exercise all other powers that may be exercised in this state 25
by the same type of entity as the association; 26
(v) Exercise any other powers necessary and proper for the 27
governance and operation of the association; 28
(w) Require that disputes between the association and unit owners 29
or between two or more unit owners regarding the common interest 30
community, other than those governed by chapter 64.50 RCW, be 31
submitted to nonbinding alternative dispute resolution as a 32
prerequisite to commencement of a judicial proceeding; and33
(x) Suspend any right or privilege of a unit owner who fails to 34
pay an assessment which suspension may be imposed for a reasonable 35
amount of time not to exceed one business day after the association 36
receives full payment of the delinquent assessment and the board has 37
received confirmation of payment and cleared funds, but may not:38
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(i) Deny a unit owner or other occupant access to the owner's 1
unit, or any limited common elements allocated only to that unit, or 2
any common elements necessary to access the unit; 3
(ii) Suspend a unit owner's right to vote; or 4
(iii) Withhold services provided to a unit or a unit owner by the 5
association if the effect of withholding the service would be to 6
endanger the health, safety, or property of any person.7
(3) The declaration may not limit the power of the association 8
beyond the limit authorized in subsection (2)(w) of this section to:9
(a) Deal with the declarant if the limit is more restrictive than 10
the limit imposed on the power of the association to deal with other 11
persons; or 12
(b) Institute litigation or an arbitration, mediation, or 13
administrative proceeding against any person, subject to the 14
following: 15
(i) The association must comply with chapter 64.50 RCW, if 16
applicable, before instituting any proceeding described in chapter 17
64.50 RCW in connection with construction defects; and18
(ii) The board must promptly provide notice to the unit owners of 19
any legal proceeding in which the association is a party other than 20
proceedings involving enforcement of rules or to recover unpaid 21
assessments or other sums due the association. 22
(4) Any borrowing by an association that is to be secured by an 23
assignment of the association's right to receive future income 24
pursuant to subsection (2)(e) and (p) of this section requires 25
ratification by the unit owners as provided in this subsection.26
(a) The board must provide notice of the intent to borrow to all 27
unit owners. The notice must include the purpose and maximum amount 28
of the loan, the estimated amount and term of any assessments 29
required to repay the loan, a reasonably detailed projection of how 30
the money will be expended, and the interest rate and term of the 31
loan. 32
(b) In the notice, the board must set a date for a meeting of the 33
unit owners, which must not be less than 14 and no more than 50 days 34
after mailing of the notice, to consider ratification of the 35
borrowing. 36
(c) Unless at that meeting, whether or not a quorum is present, 37
unit owners holding a majority of the votes in the association or any 38
larger percentage specified in the declaration reject the proposal to 39
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borrow funds, the association may proceed to borrow the funds in 1
substantial accordance with the terms contained in the notice.2
(5) If a tenant of a unit owner violates the governing documents, 3
in addition to exercising any of its powers against the unit owner, 4
the association may: 5
(a) Exercise directly against the tenant the powers described in 6
subsection (2)(l) of this section; 7
(b) After giving notice to the tenant and the unit owner and an 8
opportunity to be heard, levy reasonable fines against the tenant and 9
unit owner for the violation; and 10
(c) Enforce any other rights against the tenant for the violation 11
that the unit owner as the landlord could lawfully have exercised 12
under the lease or that the association could lawfully have exercised 13
directly against the unit owner, or both; but the association does 14
not have the right to terminate a lease or evict a tenant unless 15
permitted by the declaration. The rights referred to in this 16
subsection (5)(c) may be exercised only if the tenant or unit owner 17
fails to cure the violation within 10 days after the association 18
notifies the tenant and unit owner of that violation.19
(6) Unless a lease otherwise provides, this section does not:20
(a) Affect rights that the unit owner has to enforce the lease or 21
that the association has under other law; or 22
(b) Permit the association to enforce a lease to which it is not 23
a party in the absence of a violation of the governing documents.24
(7) The board may determine whether to take enforcement action by 25
exercising the association's power to impose sanctions or commencing 26
an action for a violation of the governing documents, including 27
whether to compromise any claim for unpaid assessments or other claim 28
made by or against it. 29
(8) The board does not have a duty to take enforcement action if 30
it determines that, under the facts and circumstances presented:31
(a) The association's legal position does not justify taking any 32
or further enforcement action; 33
(b) The covenant, restriction, or rule being enforced is, or is 34
likely to be construed as, inconsistent with law; 35
(c) Although a violation may exist or may have occurred, it is 36
not so material as to be objectionable to a reasonable person or to 37
justify expending the association's resources; or 38
(d) It is not in the association's best interests to pursue an 39
enforcement action. 40
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(9) The board's decision under subsections (7) and (8) of this 1
section to not pursue enforcement under one set of circumstances does 2
not prevent the board from taking enforcement action under another 3
set of circumstances, but the board may not be arbitrary or 4
capricious in taking enforcement action. 5
Sec. 13. RCW 64.90.410 and 2024 c 321 s 312 are each amended to 6
read as follows: 7
(1)(a) Except as provided otherwise in the governing documents, 8
subsection (4) of this section, or other provisions of this chapter, 9
the board may act on behalf of the association. 10
(b) In the performance of their duties, officers and board 11
members must exercise the degree of care and loyalty to the 12
association required of an officer or director of a corporation 13
organized, are subject to the conflict of interest rules governing 14
directors and officers, and are entitled to the immunities from 15
liability available to officers and directors under chapter 24.06 16
RCW. The standards of care and loyalty, and conflict of interest 17
rules and immunities described in this section apply regardless of 18
the form in which the association is organized. 19
(2)(a) Except as provided otherwise in RCW 64.90.300(9), 20
effective as of the transition meeting held in accordance with RCW 21
64.90.415(4), the board must be comprised of at least three members, 22
at least a majority of whom must be unit owners. However, the number 23
of board members need not exceed the number of units then in the 24
common interest community. 25
(b) Unless the declaration or organizational documents provide 26
for the election of officers by the unit owners, the board must elect 27
the officers. 28
(c) Unless provided otherwise in the declaration or 29
organizational documents, board members and officers must take office 30
upon adjournment of the meeting at which they were elected or 31
appointed or, if not elected or appointed at a meeting, at the time 32
of such election or appointment, and must serve until their successor 33
takes office. 34
(d) In determining the qualifications of any officer or board 35
member of the association, "unit owner" includes, unless the 36
declaration or organizational documents provide otherwise, any board 37
member, officer, member, partner, or trustee of any person, who is, 38
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either alone or in conjunction with another person or persons, a unit 1
owner. 2
(e) Any officer or board member of the association who would not 3
be eligible to serve as such if he or she were not a board member, 4
officer, partner in, or trustee of such a person is disqualified from 5
continuing in office if he or she ceases to have any such affiliation 6
with that person or that person would have been disqualified from 7
continuing in such office as a natural person. 8
(3) Except when voting as a unit owner, the declarant may not 9
appoint or elect any person or to serve itself as a voting, ex 10
officio or nonvoting board member following the transition meeting.11
(4) The board may not, without vote or agreement of the unit 12
owners: 13
(a) Amend the declaration, except as provided in RCW 64.90.285;14
(b) Amend the organizational documents of the association;15
(c) Terminate the common interest community; 16
(d) Elect members of the board, but may fill vacancies in its 17
membership not resulting from removal for the unexpired portion of 18
any term or, if earlier, until the next regularly scheduled election 19
of board members; or 20
(e) Determine the qualifications, powers, duties, or terms of 21
office of board members. 22
(5) The board must adopt budgets as provided in RCW 64.90.525.23
(6) Except for committees appointed by the declarant pursuant to 24
special declarant rights, all committees of the association must be 25
appointed by the board. Committees authorized to exercise any power 26
reserved to the board must include at least two board members who 27
have exclusive voting power for that committee. Committees that are 28
not so composed may not exercise the authority of the board and are 29
advisory only. 30
(7) A declaration may provide for the appointment of specified 31
positions on the board by persons other than the unit owners or the 32
declarant or an affiliate of the declarant during or after the period 33
of declarant control. It also may provide a method for filling 34
vacancies in those positions, other than by election by the unit 35
owners. However, after the period of declarant control, appointed 36
members: 37
(a) May not comprise more than one-third of the board; and38
(b) Have no greater authority than any other board member.39
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Sec. 14. RCW 64.90.435 and 2018 c 277 s 308 are each amended to 1
read as follows: 2
(1) Unless provided for in the declaration, the organizational 3
documents of the association must: 4
(a) Provide the number of board members and the titles of the 5
officers of the association; 6
(b) Provide for election by the board or, if the declaration 7
requires, by the unit owners of a president, treasurer, secretary, 8
and any other officers of the association the organizational 9
documents specify; 10
(c) Specify the qualifications, powers and duties, terms of 11
office, and manner of electing and removing board members and 12
officers and filling vacancies in accordance with RCW 64.90.410;13
(d) ((Specify)) If applicable, specify the powers the board or 14
officers may delegate to other persons or to a managing agent;15
(e) Specify a method for the unit owners to amend the 16
organizational documents; 17
(f) Describe the budget ratification process required under RCW 18
64.90.525, if not provided in the declaration; 19
(g) Contain any provision necessary to satisfy requirements in 20
this chapter or the declaration concerning meetings, voting, quorums, 21
and other activities of the association; and 22
(h) Provide for any matter required by law of this state other 23
than this chapter to appear in the organizational documents of 24
organizations of the same type as the association.25
(2) Subject to the declaration and this chapter, the 26
organizational documents may provide for any other necessary or 27
appropriate matters. 28
Sec. 15. RCW 64.90.445 and 2024 c 321 s 316 are each amended to 29
read as follows: 30
(1) The following requirements apply to unit owner meetings:31
(a) A meeting of the association must be held at least once each 32
year. Failure to hold an annual meeting does not cause a forfeiture 33
or give cause for dissolution of the association and does not affect 34
otherwise valid association acts. 35
(b)(i) An association must hold a special meeting of unit owners 36
to address any matter affecting the common interest community or the 37
association if its president, a majority of the board, or unit owners 38
having at least 20 percent, or any lower percentage specified in the 39
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organizational documents, of the votes in the association request 1
that the secretary call the meeting. 2
(ii) If the association does not provide notice to unit owners of 3
a special meeting within 30 days after the requisite number or 4
percentage of unit owners request the secretary to do so, the 5
requesting members may directly provide notice to all the unit owners 6
of the meeting. The unit owners may discuss at a special meeting a 7
matter not described in the notice under (c) of this subsection but 8
may not take action on the matter without the consent of all unit 9
owners. 10
(c) An association must provide notice to unit owners of the 11
time, date, and place of each annual and special unit owners meeting 12
not less than 14 days and not more than 50 days before the meeting 13
date. Notice may be by any means described in RCW 64.90.515. The 14
notice of any meeting must state the time, date, and place of the 15
meeting and the items on the agenda, including: 16
(i) The text of any proposed amendment to the declaration or 17
organizational documents; and18
(ii) ((Any changes in the previously approved budget that result 19
in a change in the assessment obligations; and20
(iii))) Any proposal to remove a board member or , if the 21
declaration or organizational documents provide for the election of 22
officers by the unit owners, any proposal to remove an officer.23
(d) Unit owners must be given a reasonable opportunity at any 24
meeting to comment regarding any matter affecting the common interest 25
community or the association. 26
(e) A meeting of unit owners is not required to be held at a 27
physical location if((:28
(i) The)) the meeting is conducted ((by a means of communication 29
that enables owners in different locations to communicate in real 30
time to the same extent as if they were physically present in the 31
same location, provided that such means of communication must have an 32
option for owners to communicate by telephone; and33
(ii) The declaration or organizational documents do not require 34
that the owners meet at a physical location )) in accordance with 35
subsection (3) of this section. 36
(f) In the notice for a meeting held at a physical location, the 37
board may notify all unit owners that they may participate remotely 38
in the meeting by a means of communication described in (((e) of 39
this)) subsection (3) of this section. 40
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(2) The following requirements apply to meetings of the board and 1
committees authorized to act for the board: 2
(a) Meetings must be open to the unit owners except during 3
executive sessions, but the board may expel or prohibit attendance by 4
any person who, after warning by the chair of the meeting, disrupts 5
the meeting. The board and those committees may hold an executive 6
session only during a regular or special meeting of the board or a 7
committee. A final vote or action may not be taken during an 8
executive session. 9
(b) An executive session may be held only to: 10
(i) Consult with the association's attorney concerning legal 11
matters; 12
(ii) Discuss existing or potential litigation or mediation, 13
arbitration, or administrative proceedings; 14
(iii) Discuss labor or personnel matters; 15
(iv) Discuss contracts, leases, and other commercial transactions 16
to purchase or provide goods or services currently being negotiated, 17
including the review of bids or proposals, if premature general 18
knowledge of those matters would place the association at a 19
disadvantage; or 20
(v) Prevent public knowledge of the matter to be discussed if the 21
board or committee determines that public knowledge would violate the 22
privacy of any person. 23
(c) For purposes of this subsection, a gathering of members of 24
the board or committees at which the board or committee members do 25
not conduct association business is not a meeting of the board or 26
committee. Board members and committee members may not use incidental 27
or social gatherings to evade the open meeting requirements of this 28
subsection. 29
(d) During the period of declarant control, the board must meet 30
at least four times a year. At least one of those meetings must be 31
held at the common interest community or at a place convenient to the 32
community. After the transition meeting, unless the organizational 33
documents provide otherwise, and except as otherwise provided in 34
subsection (3) of this section, all board meetings must be at the 35
common interest community or at a place convenient to the common 36
interest community ((unless the unit owners amend the bylaws to vary 37
the location of those meetings)). 38
(e) At each board meeting, the board must provide a reasonable 39
opportunity for unit owners to comment regarding matters affecting 40
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the common interest community and the association. The board must 1
provide at least 15 minutes at the beginning of each meeting for unit 2
owners to comment about agenda items before the board votes. The 3
board may place reasonable time restrictions of not less than 90 4
seconds per owner per unit, except that the time per owner per unit 5
may be reduced and allocated equally if more than 10 unit owners wish 6
to comment.7
(f) Unless the meeting is included in a schedule given to the 8
unit owners, the secretary or other officer specified in the 9
organizational documents must provide notice of each board meeting to 10
each board member and to the unit owners. The notice must be given at 11
least 14 days before the meeting and must state the time, date, 12
place, and agenda of the meeting. Notwithstanding the foregoing, 13
notice of a meeting to address an event or condition that could not 14
have been reasonably foreseen and for which it is impracticable to 15
provide notice as otherwise required by this chapter must be given at 16
least seven days before the meeting and by means of electronic 17
communication to unit owners whose electronic address or phone number 18
is known to the association.19
(g) If any materials are distributed to the board before the 20
meeting, the board must make copies of those materials reasonably 21
available to the unit owners, except that the board need not make 22
available copies of unapproved minutes or materials that are to be 23
considered in executive session. 24
(h) ((Unless the organizational )) Notwithstanding the governing 25
documents ((provide otherwise )), fewer than all board members may 26
participate in a regular or special meeting by or conduct a meeting 27
through the use of any means of communication by which all board 28
members participating can hear each other during the meeting. A board 29
member participating in a meeting by these means is deemed to be 30
present in person at the meeting. 31
(((i) Unless the organizational documents provide otherwise, the 32
board may meet by participation of all board members by telephonic, 33
video, or other conferencing process if:34
(i) The meeting notice states the conferencing process to be used 35
and provides information explaining how unit owners may participate 36
in the conference directly or by meeting at a central location or 37
conference connection; and38
p. 30 SB 5129
(ii) The process provides all unit owners the opportunity to hear 1
or perceive the discussion and to comment as provided in (e) of this 2
subsection.3
(j) After the transition meeting, unit owners may amend the 4
organizational documents to vary the procedures for meetings 5
described in (i) of this subsection.6
(k))) (i) Prior to the transition meeting, without a meeting, the 7
board may act by unanimous consent as documented in a record by all 8
its members. Actions taken by unanimous consent must be kept as a 9
record of the association with the meeting minutes. After the 10
transition meeting, the board may act by unanimous consent only to 11
undertake ministerial actions, actions subject to ratification by the 12
unit owners, or to implement actions previously taken at a meeting of 13
the board. 14
(((l))) (j) A board member who is present at a board meeting at 15
which any action is taken is presumed to have assented to the action 16
taken unless the board member's dissent or abstention to such action 17
is lodged with the person acting as the secretary of the meeting 18
before adjournment of the meeting or provided in a record to the 19
secretary of the association immediately after adjournment of the 20
meeting. The right to dissent or abstain does not apply to a board 21
member who voted in favor of such action at the meeting.22
(((m))) (k) A board member may not vote by proxy or absentee 23
ballot. 24
(((n))) (l) Even if an action by the board is not in compliance 25
with this section, it is valid unless set aside by a court. An action 26
seeking relief for failure of the board to comply with this section 27
may not be brought more than 90 days after the minutes of the board 28
of the meeting at which the action was taken are approved or the 29
record of that action is distributed to unit owners, whichever is 30
later. 31
(3) Notwithstanding the governing documents, any meeting may be 32
held by telephonic, video, or other conferencing process if:33
(a) The meeting notice states the conferencing process to be used 34
and provides information explaining how to participate in the 35
conference;36
(b) The process provides all participants the opportunity to hear 37
or perceive the discussion and to comment as provided in subsection 38
(2)(e) of this section;39
p. 31 SB 5129
(c) Any votes of the board members are conducted by roll call or 1
other verbal vote; and2
(d) Any person entitled to participate in the meeting is given 3
the option of participating by telephone.4
(4) Minutes of all unit owner meetings and board meetings, 5
excluding executive sessions, must be maintained in a record. The 6
decision on each matter voted upon at a board meeting or unit owner 7
meeting must be recorded in the minutes. 8
Sec. 16. RCW 64.90.455 and 2024 c 321 s 317 are each amended to 9
read as follows: 10
(1) Unit owners may vote at a meeting under subsection (2) or (3) 11
of this section or, when a vote is conducted without a meeting, by 12
ballot in the manner provided in subsection (4) of this section.13
(2) At a meeting of unit owners the following requirements apply:14
(a) Unless the declaration or bylaws otherwise provide, and 15
except as provided in subsection (9) of this section, unit owners or 16
their proxy holders may vote by voice vote, show of hands, standing, 17
written ballot, or any other method authorized at the meeting.18
(b) If unit owners attend the meeting by a means of communication 19
under RCW 64.90.445(1) (e) or (f), the association shall implement 20
reasonable measures to verify the identity of each unit owner 21
attending remotely. 22
(c) Whenever proposals or board members are to be voted upon at a 23
meeting, a unit owner may vote by duly executed absentee ballot if:24
(i) The name of each candidate and the text of each proposal to 25
be voted upon are set forth in a writing accompanying or contained in 26
the notice of meeting; and 27
(ii) A ballot is provided by the association for such purpose. 28
Any ballot provided by the association for election of board members 29
by the unit owners must designate a blank space for unit owners to 30
cast a vote for one or more candidates.31
(d) When a unit owner votes by absentee ballot under (c) of this 32
subsection, the association must be able to verify that the ballot is 33
cast by the unit owner having the right to do so. 34
(3) Unless the declaration or organizational documents otherwise 35
provide, unit owners may vote by proxy subject to the following 36
requirements: 37
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(a) Votes allocated to a unit may be cast pursuant to a directed 1
or undirected proxy duly executed by a unit owner in the same manner 2
as provided in RCW 24.06.110. 3
(b) When a unit owner votes by proxy, the association shall 4
implement reasonable measures to verify the identity of the unit 5
owner and the proxy holder. 6
(c) A unit owner may revoke a proxy given pursuant to this 7
section only by actual notice of revocation to the secretary or the 8
person presiding over a meeting of the association or by delivery of 9
a subsequent proxy. The death or disability of a unit owner does not 10
revoke a proxy given by the unit owner unless the person presiding 11
over the meeting has actual notice of the death or disability.12
(d) A proxy is void if it is not dated or purports to be 13
revocable without notice. 14
(e) Unless stated otherwise in the proxy, a proxy terminates 11 15
months after its date of issuance. 16
(4) Unless the declaration or organizational documents otherwise 17
provide, an association may conduct a vote without a meeting. The 18
following requirements apply: 19
(a) The association must notify the unit owners that the vote 20
will be taken by ballot without a meeting. 21
(b) The notice under (a) of this subsection must state:22
(i) The time and date by which a ballot must be delivered to the 23
association to be counted, which may not be fewer than 14 days after 24
the date of the notice, and which deadline may be extended in 25
accordance with (g) of this subsection; 26
(ii) The percent of votes necessary to approve each matter other 27
than election of board members; and 28
(iii) The time, date, and manner by which unit owners wishing to 29
deliver information to all unit owners regarding the subject of the 30
vote may do so. 31
(c) The association must deliver with the notice under (a) of 32
this subsection: 33
(i) Instructions for casting a ballot; 34
(ii) A ballot in a tangible medium to every unit owner except a 35
unit owner that has consented in a record to electronic voting; and36
(iii) If the association allows electronic voting, instructions 37
for electronic voting. 38
(d) The ballot must set forth each proposed action and provide an 39
opportunity to vote for or against the action. Any ballot provided by 40
p. 33 SB 5129
the association for election of board members by the unit owners must 1
designate a blank space for unit owners to cast a vote for one or 2
more candidates. 3
(e) A unit owner may revoke a ballot cast pursuant to this 4
section before the date and time under (b) of this subsection by 5
which the ballot must be delivered to the association only by actual 6
notice to the association of revocation. The death or disability of a 7
unit owner does not revoke a ballot unless the association has actual 8
notice of the death or disability prior to the date set forth in 9
(b)(i) of this subsection. 10
(f) Approval by ballot pursuant to this subsection is valid only 11
if the number of votes cast by ballot equals or exceeds the quorum 12
required to be present at a meeting authorizing the action.13
(g) If the association does not receive a sufficient number of 14
votes to constitute a quorum or to approve the proposal by the date 15
and time established for return of ballots, the board may extend the 16
deadline for a reasonable period not to exceed 11 months upon further 17
notice to all members in accordance with (b) of this subsection. In 18
that event, all votes previously cast on the proposal must be counted 19
unless subsequently revoked as provided in this section.20
(h) A ballot or revocation is not effective until received by the 21
association. 22
(i) The association must give notice to unit owners of any action 23
taken pursuant to this subsection within a reasonable time after the 24
action is taken. 25
(j) When an action is taken pursuant to this subsection, a record 26
of the action, including the ballots or a report of the persons 27
appointed to tabulate such ballots, must be kept with the minutes of 28
meetings of the association. 29
(k) The association shall implement reasonable measures to verify 30
that each ballot in a tangible medium and electronic ballot is cast 31
by the unit owner having a right to do so. 32
(l) A unit owner consents to electronic voting by delivering to 33
the association a record indicating such consent or by casting an 34
electronic ballot. 35
(m) An association that allows electronic ballots shall create a 36
record of electronic votes capable of retention, retrieval, and 37
review. 38
p. 34 SB 5129
(5) If the governing documents require that votes on specified 1
matters affecting the common interest community be cast by lessees 2
rather than unit owners of leased units: 3
(a) This section applies to lessees as if they were unit owners;4
(b) Unit owners that have leased their units to other persons may 5
not cast votes on those specified matters; and 6
(c) Lessees are entitled to notice of meetings, access to 7
records, and other rights respecting those matters as if they were 8
unit owners. 9
(6) Unit owners must also be given notice of all meetings at 10
which lessees may be entitled to vote. 11
(7) In any vote of the unit owners, votes allocated to a unit 12
owned by the association must be cast in the same proportion as the 13
votes cast on the matter by unit owners other than the association.14
(8)(a) Unless a different number or fraction of the votes in an 15
association is required by this chapter or the declaration, a 16
majority of the votes cast determines the outcome of a vote taken at 17
a meeting or without a meeting. 18
(b) If a unit is owned by more than one person and:19
(i) Only one owner casts a vote, that vote must be counted as 20
casting all votes allocated to the unit by the declaration; and21
(ii) More than one owner casts a vote for the unit, no vote from 22
any owner of the unit may be counted unless the declaration provides 23
a manner for allocating votes cast by multiple owners of a unit.24
(9)(a) Notwithstanding any other law or provision of the 25
governing documents, the following votes of unit owners shall be 26
conducted by secret ballot: 27
(((a))) (i) Election of board members; (((b) removal))28
(ii) Removal of board members or , if the declaration or 29
organizational documents provide for the election of officers by the 30
unit owners, the removal of officers; (((c) amendments)) or31
(iii) Amendments to the ((declaration or)) governing documents((; 32
or (d) unit owner approval of an amendment to the declaration for the 33
reallocation of a common element as a limited common element for the 34
exclusive use of an owner's unit pursuant to RCW 64.90.240)).35
(b) At a meeting of unit owners held pursuant to this section, 36
the secret ballots physically received by the association must be 37
opened and counted and the results of the secret ballots received by 38
the association by electronic means must be reviewed, announced, and 39
recorded in the meeting minutes. A quorum is not required to be 40
p. 35 SB 5129
present when the secret ballots physically received by the 1
association are opened and counted or the results of the secret 2
ballots received by the association by electronic means are reviewed, 3
announced, and recorded in the meeting minutes. 4
(c) The incumbent members of the board and each person whose name 5
is placed on the ballot as a candidate for membership on the board 6
may not possess, be given access to, or participate in the opening or 7
counting of the secret ballots that the association physically 8
receives, or the collection of data regarding the secret ballots that 9
the association receives by electronic means, before those secret 10
ballots have been opened and counted or reviewed, announced, and 11
recorded in the meeting minutes, as applicable, at a meeting of the 12
association.13
Sec. 17. RCW 64.90.475 and 2018 c 277 s 316 are each amended to 14
read as follows: 15
(1) The association must establish and maintain its accounts and 16
records in a manner that will enable it to credit assessments for 17
common expenses ((and specially allocated expenses )), including 18
allocations to reserves, and other income to the association, and to 19
charge expenditures, to the account of the appropriate units in 20
accordance with the provisions of the declaration.21
(2) To assure that the unit owners are correctly assessed for the 22
actual expenses of the association, the accounts of the association 23
must be reconciled at least annually unless the board determines that 24
a reconciliation would not result in a material savings to any unit 25
owner. Unless provided otherwise in the declaration, any surplus 26
funds of the association remaining after the payment of or provision 27
for common expenses and any prepayment of reserves must be paid 28
annually to the unit owners in proportion to their common expense 29
liabilities or credited to them to reduce their future common expense 30
assessments. 31
Sec. 18. RCW 64.90.480 and 2024 c 321 s 207 are each amended to 32
read as follows: 33
(1)(a) Assessments for common expenses ((and those specially 34
allocated expenses that are subject to inclusion in a budget )) must 35
be made at least annually based on a budget adopted at least annually 36
by the association in the manner provided in RCW 64.90.525.37
p. 36 SB 5129
(b) Assessments for common expenses ((and specially allocated 1
expenses)) must commence on all units that have been created upon the 2
conveyance of the first unit in the common interest community; 3
however, the declarant may delay commencement of assessments for some 4
or all common expenses ((or specially allocated expenses )), in which 5
event the declarant must pay all of the common expenses ((or 6
specially allocated expenses )) that have been delayed. In a common 7
interest community in which units may be added pursuant to reserved 8
development rights, the declarant may delay commencement of 9
assessments for such units in the same manner. 10
(2) The declaration may provide that, upon closing of the first 11
conveyance of each unit to a purchaser or first occupancy of a unit, 12
whichever occurs first, the association may assess and collect a 13
working capital contribution for such unit. The working capital 14
contribution may be collected prior to the commencement of common 15
assessments under subsection (1) of this section. A working capital 16
contribution may not be used to defray expenses that are the 17
obligation of the declarant. 18
(3) Except as provided otherwise in this section, all common 19
expenses must be assessed against all the units in accordance with 20
their common expense liabilities, subject to the right of the 21
declarant to delay commencement of certain common expenses under 22
subsections (1) and (2) of this section. Any past due assessment or 23
installment of past due assessment bears interest at the rate 24
established by the association pursuant to RCW 64.90.485.25
(4) The declaration may provide that any of the following common 26
expenses of the association must be assessed against the units on 27
some basis other than common expense liability. If and to the extent 28
the declaration so provides, the association must assess:29
(a) Expenses associated with the operation, maintenance, repair, 30
or replacement of any specified limited common element against the 31
units to which that limited common element is assigned, equally or in 32
any other proportion that the declaration provides;33
(b) Expenses specified in the declaration as benefiting fewer 34
than all of the units or their unit owners exclusively against the 35
units benefited in proportion to their common expense liability or in 36
any other proportion that the declaration provides, but if the common 37
expense is for the maintenance, repair, or replacement of a common 38
element other than a limited common element, the expense may be 39
p. 37 SB 5129
assessed exclusively against them only if the declaration reasonably 1
identifies the common expense by specific listing or category;2
(c) The costs of insurance in proportion to risk; and3
(d) The costs of one or more specified services or utilities in 4
proportion to respective usage, whether metered, billed in bulk based 5
on unit count, or reasonably estimated, or upon the same basis as 6
such ((utility)) charges are made by the service or utility provider.7
(5) Assessments to pay a judgment against the association may be 8
made only against the units in the common interest community at the 9
time the judgment was entered, in proportion to their common expense 10
liabilities. 11
(6) The association may assess exclusively against a unit owner's 12
unit common expenses, including expenses relating to damage to or 13
loss of property, caused by the: 14
(a) Willful misconduct or gross negligence of the unit owner or 15
the unit owner's tenant, guest, invitee, or occupant;16
(b) Failure of the unit owner to comply with a maintenance 17
standard prescribed by the declaration or a rule, if the standard 18
contains a statement that an owner may be liable for damage or loss 19
caused by failure to comply with the standard; or 20
(c) Negligence of the unit owner or the unit owner's tenant, 21
guest, invitee, or occupant, if the declaration contains a statement 22
that an owner may be liable for damage or loss caused by such 23
negligence. 24
(7) Before an association makes an assessment under subsection 25
(6) of this section, the association must give notice to the unit 26
owner and provide an opportunity for a hearing. The assessment is 27
limited to the expense the association incurred under subsection (6) 28
of this section less any insured proceeds received by the 29
association, whether the difference results from the application of a 30
deductible or otherwise. 31
(8) In the event of a loss or damage to a unit that would be 32
covered by the association's property insurance policy, excluding 33
policies for earthquake, flood, or similar losses that have higher 34
than standard deductibles, but that is within the deductible under 35
that policy and if the declaration so provides, the association may 36
assess the amount of the loss up to the deductible against that unit. 37
This subsection does not prevent a unit owner from asserting a claim 38
against another person for the amount assessed if that other person 39
would be liable for the damages under general legal principles.40
p. 38 SB 5129
(9) If common expense liabilities are reallocated, assessments 1
and any installment of assessments not yet due must be recalculated 2
in accordance with the reallocated common expense liabilities.3
(10) An association must provide at least one method of accepting 4
payment of assessments from unit owners at no charge or as a common 5
expense.6
Sec. 19. RCW 64.90.485 and 2024 c 321 s 319 are each amended to 7
read as follows: 8
(1) The association has a statutory lien on each unit for any 9
unpaid assessment against the unit from the time such assessment is 10
due. 11
(2) A lien under this section has priority over all other liens 12
and encumbrances on a unit except: 13
(a) Liens and encumbrances recorded before the recordation of the 14
declaration and, in a cooperative, liens and encumbrances that the 15
association creates, assumes, or takes subject to;16
(b) Except as otherwise provided in subsection (3) of this 17
section, a security interest on the unit recorded before the date on 18
which the unpaid assessment became due or, in a cooperative, a 19
security interest encumbering only the unit owner's interest and 20
perfected before the date on which the unpaid assessment became due; 21
and 22
(c) Liens for real estate taxes and other state or local 23
governmental assessments or charges against the unit or cooperative.24
(3)(a) A lien under this section also has priority over the 25
security interests described in subsection (2)(b) of this section to 26
the extent of an amount equal to the following: 27
(i) The common expense assessments, excluding any amounts for 28
capital improvements, based on the periodic budget adopted by the 29
association pursuant to RCW 64.90.480(1), ((along with any specially 30
allocated assessments that are properly assessable against the unit 31
under such periodic budget, )) which would have become due in the 32
absence of acceleration during the six months immediately preceding 33
the institution of proceedings to foreclose either the association's 34
lien or a security interest described in subsection (2)(b) of this 35
section; 36
(ii) The association's actual costs and reasonable attorneys' 37
fees incurred in foreclosing its lien but incurred after the giving 38
of the notice described in (a)(iii) of this subsection; provided, 39
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however, that the costs and reasonable attorneys' fees that will have 1
priority under this subsection (3)(a)(ii) shall not exceed $2,000 or 2
an amount equal to the amounts described in (a)(i) of this 3
subsection, whichever is less; 4
(iii) The amounts described in (a)(ii) of this subsection shall 5
be prior only to the security interest of the holder of a security 6
interest on the unit recorded before the date on which the unpaid 7
assessment became due and only if the association has given that 8
holder not less than 60 days' prior written notice that the owner of 9
the unit is in default in payment of an assessment. The notice shall 10
contain: 11
(A) Name of the borrower; 12
(B) Recording date of the trust deed or mortgage;13
(C) Recording information; 14
(D) Name of ((condominium)) common interest community , unit 15
owner, and unit designation stated in the declaration or applicable 16
supplemental declaration; 17
(E) Amount of unpaid assessment; and 18
(F) A statement that failure to, within 60 days of the written 19
notice, submit the association payment of six months of assessments 20
as described in (a)(i) of this subsection will result in the priority 21
of the amounts described in (a)(ii) of this subsection; and22
(iv) Upon payment of the amounts described in (a)(i) and (ii) of 23
this subsection by the holder of a security interest, the 24
association's lien described in this subsection (3)(a) shall 25
thereafter be fully subordinated to the lien of such holder's 26
security interest on the unit. 27
(b) For the purposes of this subsection: 28
(i) "Institution of proceedings" means either:29
(A) The date of recording of a notice of trustee's sale by a deed 30
of trust beneficiary; 31
(B) The date of commencement, pursuant to applicable court rules, 32
of an action for judicial foreclosure either by the association or by 33
the holder of a recorded security interest; or 34
(C) The date of recording of a notice of intention to forfeit in 35
a real estate contract forfeiture proceeding by the vendor under a 36
real estate contract. 37
(ii) "Capital improvements" does not include making, in the 38
ordinary course of management, repairs to common elements or 39
replacements of the common elements with substantially similar items, 40
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subject to: (A) Availability of materials and products, (B) 1
prevailing law, or (C) sound engineering and construction standards 2
then prevailing. 3
(c) The adoption of a periodic budget that purports to allocate 4
to a unit any fines, late charges, interest, attorneys' fees and 5
costs incurred for services unrelated to the foreclosure of the 6
association's lien, other collection charges, or specially allocated 7
assessments assessed under RCW 64.90.480(6) ((or (7))) does not cause 8
any such items to be included in the priority amount affecting such 9
unit. 10
(4) Subsections (2) and (3) of this section do not affect the 11
priority of mechanics' or material suppliers' liens to the extent 12
that law of this state other than chapter 277, Laws of 2018 gives 13
priority to such liens, or the priority of liens for other 14
assessments made by the association. 15
(5) A lien under this section is not subject to chapter 6.13 RCW.16
(6) If the association forecloses its lien under this section 17
nonjudicially pursuant to chapter 61.24 RCW, as provided under 18
subsection (13) of this section, the association is not entitled to 19
the lien priority provided for under subsection (3) of this section, 20
and is subject to the limitations on deficiency judgments as provided 21
in chapter 61.24 RCW. 22
(7) Unless the declaration provides otherwise, if two or more 23
associations have liens for assessments created at any time on the 24
same property, those liens have equal priority as to each other, and 25
any foreclosure of one such lien shall not affect the lien of the 26
other. 27
(8) Recording of the declaration constitutes record notice and 28
perfection of the statutory lien created under this section. Further 29
notice or recordation of any claim of lien for assessment under this 30
section is not required, but is not prohibited. 31
(9) A lien for unpaid assessments and the personal liability for 32
payment of those assessments are extinguished unless proceedings to 33
enforce the lien or collect the debt are instituted within six years 34
after the full amount of the assessments sought to be recovered 35
becomes due. 36
(10) This section does not prohibit actions against unit owners 37
to recover sums for which subsection (1) of this section creates a 38
lien or prohibit an association from taking a deed in lieu of 39
foreclosure. 40
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(11) The association upon written request must furnish to a unit 1
owner or a mortgagee a statement signed by an officer or authorized 2
agent of the association setting forth the amount of unpaid 3
assessments or the priority amount against that unit, or both. The 4
statement must be furnished within 15 days after receipt of the 5
request and is binding on the association, the board, and every unit 6
owner unless, and to the extent, known by the recipient to be false. 7
The liability of a recipient who reasonably relies upon the statement 8
must not exceed the amount set forth in any statement furnished 9
pursuant to this section or RCW 64.90.640(1)(b). 10
(12) In a cooperative, upon nonpayment of an assessment on a 11
unit, the unit owner may be evicted in the same manner as provided by 12
law in the case of an unlawful holdover by a commercial tenant, and 13
the lien may be foreclosed as provided under this section.14
(13) The association's lien may be foreclosed in accordance with 15
(a) and (b) of this subsection. 16
(a) In a common interest community other than a cooperative, the 17
association's lien may be foreclosed judicially in accordance with 18
chapter 61.12 RCW, subject to any rights of redemption under chapter 19
6.23 RCW. 20
(b) The lien may be enforced nonjudicially in the manner set 21
forth in chapter 61.24 RCW for nonjudicial foreclosure of deeds of 22
trust if the declaration: Contains a grant of the common interest 23
community in trust to a trustee qualified under RCW 61.24.010 to 24
secure the obligations of the unit owners to the association for the 25
payment of assessments, contains a power of sale, provides in its 26
terms that the units are not used principally for agricultural 27
purposes, and provides that the power of sale is operative in the 28
case of a default in the obligation to pay assessments. The 29
association or its authorized representative may purchase the unit at 30
the foreclosure sale and acquire, hold, lease, mortgage, or convey 31
the unit. Upon an express waiver in the complaint of any right to a 32
deficiency judgment in a judicial foreclosure action, the period of 33
redemption is eight months. 34
(c) In a cooperative in which the unit owners' interests in the 35
units are real estate, the association's lien must be foreclosed in 36
like manner as a mortgage on real estate or by power of sale under 37
(b) of this subsection. 38
(d) In a cooperative in which the unit owners' interests in the 39
units are personal property, the association's lien must be 40
p. 42 SB 5129
foreclosed in like manner as a security interest under chapter 62A.9A 1
RCW. 2
(e) No member of the association's board, or their immediate 3
family members or affiliates, are eligible to bid for or purchase, 4
directly or indirectly, any interest in a unit at a foreclosure of 5
the association's lien. For the purposes of this subsection, 6
"immediate family member" includes spouses, domestic partners, 7
children, siblings, parents, parents-in-law, and stepfamily members; 8
and "affiliate" of a board member includes any person controlled by 9
the board member, including any entity in which the board member is a 10
general partner, managing member, majority member, officer, or 11
director. Nothing in this subsection prohibits an association from 12
bidding for or purchasing interest in a unit at a foreclosure of the 13
association's lien. 14
(14) If the unit owner's interest in a unit in a cooperative is 15
real estate, the following requirements apply: 16
(a) The association, upon nonpayment of assessments and 17
compliance with this subsection, may sell that unit at a public sale 18
or by private negotiation, and at any time and place. The association 19
must give to the unit owner and any lessee of the unit owner 20
reasonable notice in a record of the time, date, and place of any 21
public sale or, if a private sale is intended, of the intention of 22
entering into a contract to sell and of the time and date after which 23
a private conveyance may be made. Such notice must also be sent to 24
any other person that has a recorded interest in the unit that would 25
be cut off by the sale, but only if the recorded interest was on 26
record seven weeks before the date specified in the notice as the 27
date of any public sale or seven weeks before the date specified in 28
the notice as the date after which a private sale may be made. The 29
notices required under this subsection may be sent to any address 30
reasonable in the circumstances. A sale may not be held until five 31
weeks after the sending of the notice. The association may buy at any 32
public sale and, if the sale is conducted by a fiduciary or other 33
person not related to the association, at a private sale.34
(b) Unless otherwise agreed to or as stated in this section, the 35
unit owner is liable for any deficiency in a foreclosure sale.36
(c) The proceeds of a foreclosure sale must be applied in the 37
following order: 38
(i) The reasonable expenses of sale; 39
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(ii) The reasonable expenses of securing possession before sale; 1
the reasonable expenses of holding, maintaining, and preparing the 2
unit for sale, including payment of taxes and other governmental 3
charges and premiums on insurance; and, to the extent provided for by 4
agreement between the association and the unit owner, reasonable 5
attorneys' fees, costs, and other legal expenses incurred by the 6
association; 7
(iii) Satisfaction of the association's lien; 8
(iv) Satisfaction in the order of priority of any subordinate 9
claim of record; and 10
(v) Remittance of any excess to the unit owner.11
(d) A good-faith purchaser for value acquires the unit free of 12
the association's debt that gave rise to the lien under which the 13
foreclosure sale occurred and any subordinate interest, even though 14
the association or other person conducting the sale failed to comply 15
with this section. The person conducting the sale must execute a 16
conveyance to the purchaser sufficient to convey the unit and stating 17
that it is executed by the person after a foreclosure of the 18
association's lien by power of sale and that the person was empowered 19
to make the sale. Signature and title or authority of the person 20
signing the conveyance as grantor and a recital of the facts of 21
nonpayment of the assessment and of the giving of the notices 22
required under this subsection are sufficient proof of the facts 23
recited and of the authority to sign. Further proof of authority is 24
not required even though the association is named as grantee in the 25
conveyance. 26
(e) At any time before the association has conveyed a unit in a 27
cooperative or entered into a contract for its conveyance under the 28
power of sale, the unit owners or the holder of any subordinate 29
security interest may cure the unit owner's default and prevent sale 30
or other conveyance by tendering the performance due under the 31
security agreement, including any amounts due because of exercise of 32
a right to accelerate, plus the reasonable expenses of proceeding to 33
foreclosure incurred to the time of tender, including reasonable 34
attorneys' fees and costs of the creditor. 35
(15) In an action by an association to collect assessments or to 36
foreclose a lien on a unit under this section, the court may appoint 37
a receiver to collect all sums alleged to be due and owing to a unit 38
owner before commencement or during pendency of the action. The 39
receivership is governed under chapter 7.60 RCW. During pendency of 40
p. 44 SB 5129
the action, the court may order the receiver to pay sums held by the 1
receiver to the association for any assessments against the unit. The 2
exercise of rights under this subsection by the association does not 3
affect the priority of preexisting liens on the unit.4
(16) Except as provided in subsection (3) of this section, the 5
holder of a mortgage or other purchaser of a unit who obtains the 6
right of possession of the unit through foreclosure is not liable for 7
assessments or installments of assessments that became due prior to 8
such right of possession. Such unpaid assessments are deemed to be 9
common expenses collectible from all the unit owners, including such 10
mortgagee or other purchaser of the unit. Foreclosure of a mortgage 11
does not relieve the prior unit owner of personal liability for 12
assessments accruing against the unit prior to the date of such sale 13
as provided in this subsection. 14
(17) In addition to constituting a lien on the unit, each 15
assessment is the joint and several obligation of the unit owner of 16
the unit to which the same are assessed as of the time the assessment 17
is due. A unit owner may not exempt himself or herself from liability 18
for assessments. In a voluntary conveyance other than by foreclosure, 19
the grantee of a unit is jointly and severally liable with the 20
grantor for all unpaid assessments against the grantor up to the time 21
of the grantor's conveyance, without prejudice to the grantee's right 22
to recover from the grantor the amounts paid by the grantee. Suit to 23
recover a personal judgment for any delinquent assessment is 24
maintainable in any court of competent jurisdiction without 25
foreclosing or waiving the lien securing such sums.26
(18) The association may from time to time establish reasonable 27
late charges and a rate of interest to be charged, not to exceed the 28
maximum rate calculated under RCW 19.52.020, on all subsequent 29
delinquent assessments or installments of assessments. If the 30
association does not establish such a rate, delinquent assessments 31
bear interest from the date of delinquency at the maximum rate 32
calculated under RCW 19.52.020 on the date on which the assessments 33
became delinquent. 34
(19) The association is entitled to recover any costs and 35
reasonable attorneys' fees incurred in connection with the collection 36
of delinquent assessments, whether or not such collection activities 37
result in a suit being commenced or prosecuted to judgment. The 38
prevailing party is also entitled to recover costs and reasonable 39
p. 45 SB 5129
attorneys' fees in such suits, including any appeals, if it prevails 1
on appeal and in the enforcement of a judgment. 2
(20) To the extent not inconsistent with this section, the 3
declaration may provide for such additional remedies for collection 4
of assessments as may be permitted by law. 5
(21)(a) When the association mails to the unit owner by first-6
class mail the first notice of delinquency for past due assessments 7
to the unit address and to any other address that the owner has 8
provided to the association, the association shall include a first 9
preforeclosure notice that states as follows: 10
THIS IS A NOTICE OF DELINQUENCY FOR PAST DUE ASSESSMENTS11
FROM THE UNIT OWNERS ASSOCIATION TO WHICH YOUR HOME BELONGS.12
THIS NOTICE IS ONE STEP IN A PROCESS THAT COULD RESULT IN YOUR LOSING 13
YOUR HOME. 14
CONTACT A HOUSING COUNSELOR OR AN ATTORNEY LICENSED IN WASHINGTON NOW 15
to assess your situation and refer you to mediation if you might 16
benefit. DO NOT DELAY. 17
BE CAREFUL of people who claim they can help you. There are many 18
individuals and businesses that prey upon borrowers in distress.19
REFER TO THE CONTACTS BELOW for sources of assistance.20
SEEKING ASSISTANCE21
Housing counselors and legal assistance may be available at 22
little or no cost to you. If you would like assistance in determining 23
your rights and opportunities to keep your house, you may contact the 24
following: 25
The statewide foreclosure hotline for assistance and referral to 26
housing counselors recommended by the Housing Finance Commission27
Telephone: . . . . . . . Website: . . . . . . 28
The United States Department of Housing and Urban Development29
Telephone: . . . . . . . Website: . . . . . . .30
The statewide civil legal aid hotline for assistance and 31
referrals to other housing counselors and attorneys32
Telephone: . . . . . . . Website: . . . . . . 33
The association shall obtain the toll-free numbers and website 34
information from the department of commerce for inclusion in the 35
notice. 36
(b) If, when a delinquent account is referred to an association's 37
attorney, the first preforeclosure notice required under (a) of this 38
subsection has not yet been mailed to the unit owner, the association 39
p. 46 SB 5129
or the association's attorney shall mail the first preforeclosure 1
notice to the unit owner in order to satisfy the requirement in (a) 2
of this subsection. 3
(c) Mailing the first preforeclosure notice pursuant to (a) of 4
this subsection does not satisfy the requirement in subsection 5
(22)(b) of this section to mail a second preforeclosure notice at or 6
after the date that assessments have become past due for at least 90 7
days. The second preforeclosure notice may not be mailed sooner than 8
60 days after the first preforeclosure notice is mailed.9
(22) An association may not commence an action to foreclose a 10
lien on a unit under this section unless: 11
(a) The unit owner, at the time the action is commenced, owes at 12
least a sum equal to the greater of: 13
(i) Three months or more of assessments, not including fines, 14
late charges, interest, attorneys' fees, or costs incurred by the 15
association in connection with the collection of a delinquent owner's 16
account; or 17
(ii) $2,000 of assessments, not including fines, late charges, 18
interest, attorneys' fees, or costs incurred by the association in 19
connection with the collection of a delinquent owner's account;20
(b) At or after the date that assessments have become past due 21
for at least 90 days, but no sooner than 60 days after the first 22
preforeclosure notice required in subsection (21)(a) of this section 23
is mailed, the association has mailed, by first-class mail, to the 24
owner, at the unit address and to any other address which the owner 25
has provided to the association, a second notice of delinquency, 26
which must include a second preforeclosure notice that contains the 27
same information as the first preforeclosure notice provided to the 28
owner pursuant to subsection (21)(a) of this section. The second 29
preforeclosure notice may not be mailed sooner than 60 days after the 30
first preforeclosure notice required in subsection (21)(a) of this 31
section is mailed; 32
(c) At least 90 days have elapsed from the date the minimum 33
amount required in (a) of this subsection has accrued; and34
(d) The board approves commencement of a foreclosure action 35
specifically against that unit. 36
(23) Every aspect of a collection, foreclosure, sale, or other 37
conveyance under this section, including the method, advertising, 38
time, date, place, and terms, must be commercially reasonable.39
p. 47 SB 5129
Sec. 20. RCW 64.90.513 and 2022 c 27 s 4 are each amended to 1
read as follows: 2
(1)(a) A unit owners association may not adopt or enforce a 3
restriction, covenant, condition, bylaw, rule, regulation, provision 4
of a governing document, or master deed provision that:5
(i) Effectively prohibits or unreasonably restricts the 6
installation or use of an electric vehicle charging station in 7
compliance with the requirements of this section and for the personal 8
noncommercial use of a unit owner, within the boundaries of a unit or 9
in a designated parking space; or 10
(ii) Is in conflict with the provisions of this section.11
(b) Nothing in this section prohibits an association from 12
imposing reasonable restrictions on electric vehicle charging 13
stations. However, it is the policy of the state to promote, 14
encourage, and remove obstacles to the use of electric vehicle 15
charging stations. 16
(c) Notwithstanding (a) or (b) of this subsection, an association 17
of single-family homes, site condominiums, or a planned use 18
development where the units are not immediately adjacent may not 19
restrict the installation of an electric vehicle charging station 20
unless the electric vehicle charging station:21
(i) Is installed within or upon a common element;22
(ii) Is connected to a common electrical power supply; or23
(iii) Is installed outside the envelope of a primary or secondary 24
dwelling or the unit's garage and is visible from the street, alley, 25
or ground floor of another unit.26
(2) A unit owners association may require a unit owner to submit 27
an application for approval for the installation of an electric 28
vehicle charging station before installing the charging station 29
unless such installation is exempt from restrictions pursuant to 30
subsection (1)(c) of this section. 31
(3)(a) If approval is required for the installation or use of an 32
electric vehicle charging station subject to subsection (2) of this 33
section, the application for approval must be processed and approved 34
in the same manner as an application for approval of an architectural 35
modification. 36
(b) The approval or denial of an application must be in writing 37
and must not be willfully avoided or delayed. 38
(c) If an application is not denied in writing within 60 days 39
from the date of receipt of the application, the application is 40
p. 48 SB 5129
deemed approved, unless that delay is the result of a reasonable 1
request for additional information. 2
(d) An association may not assess or charge a unit owner a fee 3
for the placement of an electric vehicle charging station. An 4
association may charge a reasonable fee for processing the 5
application to approve the installation of an electric vehicle 6
charging station, but only if such a fee exists for all applications 7
for approval of architectural modifications. 8
(4) If approval is required for the installation or use of an 9
electric vehicle charging station subject to subsection (2) of this 10
section, a unit owners association must approve the installation 11
within the boundaries of a unit or in a designated parking space if 12
the installation is reasonably possible and the unit owner agrees in 13
writing to: 14
(a) Comply with the association's reasonable architectural 15
standards applicable to the installation of the electric vehicle 16
charging station; 17
(b) Engage an electrical contractor familiar with the standards 18
for the installation of electric vehicle infrastructure to assess the 19
existing infrastructure necessary to support the proposed electric 20
vehicle charging station, identify additional infrastructure needs, 21
and install the electric vehicle charging station;22
(c)(i) Provide, within the time specified in (c)(ii) of this 23
subsection, a certificate of insurance naming the association as an 24
additional insured on the unit owner's insurance policy for any claim 25
related to the installation, inspection, maintenance, or use of the 26
electric vehicle charging station in a common interest community 27
other than an association of single-family homes, site condominiums, 28
or a planned use development where the units are not immediately 29
adjacent; 30
(ii) A certificate of insurance required under (c)(i) of this 31
subsection must be provided within 14 days after the association 32
approves the installation of the electric vehicle charging station. 33
Reimbursement for an increased insurance premium amount under (c)(i) 34
of this subsection must be provided within 14 days after the unit 35
owner receives the association's invoice for the amount attributable 36
to the charging station; 37
(d) Register the electric vehicle charging station with the 38
association within 30 days after installation; 39
p. 49 SB 5129
(e) Pay for the electricity usage associated with the electric 1
vehicle charging station and the required means to facilitate payment 2
for the electricity; and 3
(f) Comply with the requirements of this section.4
(5)(a) A unit owner must obtain any permit or approval for an 5
electric vehicle charging station as required by the local government 6
in which the common interest community is located and comply with all 7
relevant building codes and safety standards. 8
(b) An electric vehicle charging station must meet all applicable 9
health and safety standards and requirements imposed by national, 10
state, or local authorities, and all other applicable zoning, land 11
use or other ordinances, building codes, or land use permits.12
(6)(a) Unless otherwise agreed to by written contract with the 13
unit owners association, a unit owner is responsible for the costs of 14
installing an electric vehicle charging station. 15
(b) Electric vehicle charging station equipment that is installed 16
at the unit owner's cost and is removable without damage to the 17
property owned by others may be removed at the unit owner's cost. 18
Nothing in this subsection requires the association to purchase the 19
electric vehicle charging station. 20
(7) ((A)) When an installed electric vehicle charging station is 21
not exempt from restrictions pursuant to subsection (1)(c) of this 22
section, a unit owner must disclose to any prospective buyers of the 23
unit: 24
(a) The existence of an electric vehicle charging station and the 25
related responsibilities of the owner under this section; and26
(b) Whether the electric vehicle charging station is removable 27
and whether the owner intends to remove the charging station.28
(8) ((The)) Notwithstanding the governing documents and without 29
regard for when an electric vehicle charging station was first put 30
into service and the location of any components thereof, the owner 31
and each successive owner of an electric vehicle charging station 32
exclusively serving the owner's unit is responsible for:33
(a) Costs for the inspection, maintenance, repair, and 34
replacement of the electric vehicle charging station up until the 35
station is removed; 36
(b) Costs for damage to the electric vehicle charging station, 37
any unit, common element, or limited common element resulting from 38
the installation, use, inspection, maintenance, repair, removal, or 39
replacement of the electric vehicle charging station;40
p. 50 SB 5129
(c) The cost of electricity associated with the electric vehicle 1
charging station; 2
(d) Obtaining and maintaining an insurance policy that meets the 3
requirements in subsection (4)(c) of this section; 4
(e) If the owner decides to remove the electric vehicle charging 5
station, costs for the removal and the restoration of the common 6
element or limited common element after the removal; and7
(f) Removing the electric vehicle charging station if reasonably 8
necessary for the inspection, repair, maintenance, or replacement of 9
the common element or limited common element. 10
(9) A unit owners association may install an electric vehicle 11
charging station in the common elements for the use of all unit 12
owners and, in that case, the association must develop appropriate 13
terms of use for the charging station. 14
(10)(a) A unit owners association that willfully violates this 15
section is liable to the unit owner for actual damages, and shall pay 16
a civil penalty to the unit owner in an amount not to exceed $1,000.17
(b) In any action by a unit owner requesting to have an electric 18
vehicle charging station installed and seeking to enforce compliance 19
with this section, the court shall award reasonable attorneys' fees 20
and costs to any prevailing unit owner. 21
(11) The definitions in this subsection apply throughout this 22
section unless the context clearly requires otherwise.23
(a) "Designated parking space" means a parking space that is 24
specifically designated for use by a particular unit owner, including 25
a garage, a deeded parking space, and a parking space in a limited 26
common element that is restricted for use by one or more unit owners.27
(b) "Electric vehicle charging station" means a station that 28
delivers electricity from a source outside an electric vehicle into 29
one or more electric vehicles. An electric vehicle charging station 30
may include several charge points simultaneously connecting several 31
electric vehicles to the station and any related equipment needed to 32
facilitate charging plug-in electric vehicles. 33
(c) "Reasonable restriction" means a restriction that does not 34
significantly increase the cost of an electric vehicle charging 35
station or significantly decrease its efficiency or specified 36
performance. 37
Sec. 21. RCW 64.90.525 and 2018 c 277 s 326 are each amended to 38
read as follows: 39
p. 51 SB 5129
(1)(a) Within thirty days after adoption of any proposed budget 1
for the common interest community, the board must provide a copy of 2
the budget to all the unit owners and set a date for a meeting of the 3
unit owners to consider ratification of the budget not less than 4
fourteen nor more than fifty days after providing the budget. Unless 5
at that meeting the unit owners of units to which a majority of the 6
votes in the association are allocated or any larger percentage 7
specified in the declaration reject the budget, the budget and the 8
assessments against the units included in the budget are ratified, 9
whether or not a quorum is present. 10
(b) If the proposed budget is rejected or the required notice is 11
not given, the periodic budget last ratified by the unit owners 12
continues until the unit owners ratify a subsequent budget proposed 13
by the board. 14
(2) The budget must include: 15
(a) The projected income to the association by category;16
(b) The projected common expenses ((and those specially allocated 17
expenses that are subject to being budgeted, both)) by category;18
(c) The amount of the assessments per unit and the date the 19
assessments are due; 20
(d) The current amount of regular assessments budgeted for 21
contribution to the reserve account; 22
(e) A statement of whether the association has a reserve study 23
that meets the requirements of RCW 64.90.550 and, if so, the extent 24
to which the budget meets or deviates from the recommendations of 25
that reserve study; and 26
(f) The current deficiency or surplus in reserve funding 27
expressed on a per unit basis. 28
(3) The board, at any time, may propose a special assessment. The 29
assessment is effective only if the board follows the procedures for 30
ratification of a budget described in subsection (1) of this section 31
and the unit owners do not reject the proposed assessment. The board 32
may provide that the special assessment may be due and payable in 33
installments over any period it determines and may provide a discount 34
for early payment. 35
Sec. 22. RCW 64.90.530 and 2018 c 277 s 327 are each amended to 36
read as follows: 37
p. 52 SB 5129
(1) The association must prepare, or cause to be prepared, at 1
least annually, a financial statement of the association in 2
accordance with accrual based accounting practices.3
(2) The financial statements of associations with annual 4
assessments of ((fifty thousand dollars )) $50,000 or more must be 5
audited at least annually by a certified public accountant. In the 6
case of an association with annual assessments of less than ((fifty 7
thousand dollars)) $50,000, an annual audit is also required but may 8
be waived annually by unit owners other than the declarant of units 9
to which a majority of the votes in the association are allocated, 10
excluding the votes allocated to units owned by the declarant.11
(3) The association must keep all funds of the association in the 12
name of the association with a qualified financial institution , 13
except as provided in RCW 64.90.535. The funds must not be commingled 14
with the funds of any other association or with the funds of any 15
managing agent of the association or any other person, or be kept in 16
any trust account or custodial account in the name of any trustee or 17
custodian. 18
(4) A managing agent who accepts or receives funds belonging to 19
the association must promptly deposit all such funds into an account 20
maintained by the association as provided in subsection (3) of this 21
section or RCW 64.90.535, as appropriate. 22
Sec. 23. RCW 64.90.535 and 2018 c 277 s 328 are each amended to 23
read as follows: 24
(1) An association required to obtain a reserve study pursuant to 25
RCW 64.90.545 must establish one or more accounts for the deposit of 26
funds, if any, for the replacement costs of reserve components. ((Any 27
reserve account must be an income-earning account maintained under 28
the direct control of the board, and the board is responsible for 29
administering the reserve account. )) Reserve accounts must be 30
maintained such that reserve funds are not commingled with other 31
funds of the association.32
(2)(a) Except as otherwise provided in this subsection, reserve 33
funds must be held in an interest-bearing account at a financial 34
institution domiciled in the United States that is regulated by FINRA 35
or by the office of the comptroller of the currency. The reserve 36
account must be maintained by the board and titled solely in the name 37
of the association, with authorized signatories for the account added 38
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or removed only at the direction of the board. The board is 1
responsible for administering the reserve account. 2
(b)(i) Notwithstanding any contrary requirements of this section 3
and the governing documents, reserve funds may be held in cash or 4
invested in money market funds, certificates of deposit, or United 5
States treasury bills, notes, or bonds. Any decision by the board to 6
hold funds in certificates of deposit or United States treasury 7
bills, notes, or bonds must consider all factors enumerated by RCW 8
11.100.020(3).9
(ii) Decisions related to reserve funds held pursuant to this 10
subsection (2)(b) must be made by the board, except the board may 11
delegate decisions for maintaining funds in timed deposit durations 12
less than or equal to 100 days. Such decisions must adhere to a duly 13
adopted policy or resolution approved by the board that:14
(A) Incorporates the factors enumerated by RCW 11.100.020(3);15
(B) Complies with this chapter; and16
(C) Complies with any greater requirements imposed by the 17
governing documents.18
(c) Unless provided otherwise by the governing documents, reserve 19
funds may be invested in securities, provided that:20
(i)(A) Except as provided in (c)(i)(B) of this subsection, new 21
investments in securities, including reinvestments: (I) May only be 22
made when the total value of reserve funds is equal to or greater 23
than $250,000; and (II) may not be made if the total value of reserve 24
funds held in accounts described in (b) of this subsection would be 25
less than 50 percent upon making the new investment.26
(B) The owners of units to which at least 75 percent of the votes 27
in the association are allocated may vote to invest, including 28
reinvestments, up to 100 percent of any available reserve funds 29
subject to the additional requirements of this section;30
(ii) The investments are approved as part of the budget 31
ratification process under RCW 64.90.525;32
(iii) The investments are administered according to the standards 33
established by RCW 11.100.020; and34
(iv) The investments are administered by a qualified third-party 35
fiduciary or directly by the board in consultation with an 36
independent, qualified investment adviser as defined in RCW 37
21.20.005.38
(d) For purposes of this subsection:39
(i) "FINRA" has the same meaning as defined in RCW 48.23.015;40
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(ii) "Independent" means a person who:1
(A) Is not an employee, officer, or director of the association;2
(B) Is not an immediate family member or affiliate, as these 3
terms are defined in RCW 64.90.485, of an employee, officer, or 4
director of the association; and5
(C) Has no pecuniary interest in the association.6
(iii) "Securities" has the same meaning as "security" as defined 7
in RCW 21.20.005, but does not include accounts described in (a) or 8
(b)(i) of this subsection.9
(3) Except for investments and transfers between separate reserve 10
accounts held by the same association, every disbursement of reserve 11
funds requires:12
(a) The signature of at least two persons who are officers or 13
directors of the association; and14
(b) Documentation of the expenses with supporting invoices 15
including:16
(i) Assigned components of the reserve study relating to the 17
disbursement and their classification such as, but not limited to, 18
common elements, residential common elements, or commercial common 19
elements;20
(ii) A statement that the disbursement is related to one or more 21
reserve components not currently included in the reserve study and 22
their classification such as, but not limited to, common elements, 23
residential common elements, commercial common elements; or24
(iii) A statement indicating a disbursement to borrow from the 25
reserve that includes the repayment plan required by RCW 26
64.90.540(1).27
Sec. 24. RCW 64.90.580 and 2024 c 128 s 4 are each amended to 28
read as follows: 29
(1)(a) A unit owners association may not adopt or enforce a 30
restriction, covenant, condition, bylaw, rule, regulation, provision 31
of a governing document, or master deed provision that:32
(i) Effectively prohibits or unreasonably restricts the 33
installation or use of a heat pump in compliance with the 34
requirements of this section and for the personal use of a unit owner 35
within the boundaries of a unit; or 36
(ii) Is in conflict with the provisions of this section.37
(b) Nothing in this section prohibits an association from 38
imposing reasonable restrictions on heat pumps. 39
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(c) This section must not be construed to permit installation by 1
a unit owner of heat pump equipment on or in common elements without 2
approval of the board which shall not be unreasonably withheld.3
(2) A unit owners association may require a unit owner to submit 4
an application for approval for the installation of a heat pump 5
before installing the heat pump. 6
(3)(a) If approval is required for the installation of a heat 7
pump, the application for approval must be processed and approved in 8
the same manner as an application for approval of an architectural 9
modification. 10
(b) The approval or denial of an application must be in writing 11
and must not be willfully avoided or delayed. 12
(c) If an application is not denied in writing within 60 days 13
from the date of receipt of the application, the application is 14
deemed approved, unless that delay is the result of a reasonable 15
request for additional information. 16
(d) An association may not assess or charge a unit owner a fee 17
for the installation of a heat pump. An association may charge a 18
reasonable fee for processing the application to approve the 19
installation of a heat pump, but only if such a fee exists for all 20
applications for approval of architectural modifications.21
(4) If approval is required for the installation of a heat pump, 22
a unit owners association must approve the installation if the 23
installation is reasonably possible and the unit owner agrees in 24
writing to: 25
(a) Comply with the association's reasonable architectural 26
standards applicable to the installation of the heat pump;27
(b) Engage a heating, ventilation, and air conditioning (HVAC) 28
contractor familiar with the standards for the installation of heat 29
pumps to assess the existing infrastructure necessary to support the 30
proposed heat pump, identify additional infrastructure needs, and 31
install the heat pump; and 32
(c) Comply with the requirements of this section.33
(5)(a) A unit owner must obtain any permit or approval for a heat 34
pump as required by the local government in which the common interest 35
community is located and comply with all relevant building codes and 36
safety standards. 37
(b) A heat pump must meet all applicable health and safety 38
standards and requirements imposed by national, state, or local 39
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authorities, and all other applicable zoning, land use or other 1
ordinances, building codes, or land use permits. 2
(6)(a) Unless otherwise agreed to by written contract with the 3
unit owners association, a unit owner is responsible for the costs of 4
installing a heat pump. 5
(b) Heat pump equipment that is installed at the unit owner's 6
cost and is removable without damage to the property owned by others 7
may be removed at the unit owner's cost. 8
(7) ((The)) Notwithstanding the governing documents and without 9
regard for when a heat pump was first put into service and the 10
location of any components thereof, the unit owner and each 11
successive owner of ((the)) a heat pump exclusively serving the 12
owner's unit is responsible for: 13
(a) Costs for the inspection, maintenance, repair, and 14
replacement of the heat pump up until the heat pump is removed;15
(b) Costs for damage to the heat pump, any unit, common element, 16
or limited common element resulting from the installation, 17
inspection, use, maintenance, repair, removal, or replacement of the 18
heat pump; 19
(c) If the unit owner decides to remove the heat pump, costs for 20
the removal and the restoration of the common elements or limited 21
common elements after the removal; and 22
(d) Removing heat pump equipment if reasonably necessary for the 23
inspection, repair, maintenance, or replacement of the common element 24
or limited common element. 25
(8)(a) A unit owners association that willfully violates this 26
section is liable to the unit owner for actual damages, and shall pay 27
a civil penalty to the unit owner in an amount not to exceed $1,000.28
(b) In any action by a unit owner requesting to have a heat pump 29
installed and seeking to enforce compliance with this section, the 30
court shall award reasonable attorneys' fees and costs to any 31
prevailing unit owner. 32
(9) For the purposes of this section: 33
(a) "Heat pump" means a heating or refrigerating system used to 34
transfer heat. The heat pump condenser and evaporator may change 35
roles to transfer heat in either direction. By receiving the flow of 36
air or other fluid, a heat pump is used to cool or heat.37
(b) "Reasonable restriction" means a restriction that does not 38
significantly increase the cost of a heat pump or significantly 39
decrease its efficiency or specified performance. 40
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Sec. 25. RCW 64.90.600 and 2018 c 277 s 401 are each amended to 1
read as follows: 2
(1) RCW 64.90.605 through 64.90.695 apply to all units subject to 3
this chapter, except as provided in subsections (2) and (3) of this 4
section. 5
(2) RCW 64.90.605 through 64.90.695 do not apply in the case of:6
(a) A conveyance by gift, devise, or descent; 7
(b) A conveyance pursuant to court order; 8
(c) A conveyance by a government or governmental agency;9
(d) A conveyance by foreclosure; 10
(e) A conveyance of all of the units in a common interest 11
community in a single transaction; 12
(f) A conveyance to other than a purchaser; 13
(g) An agreement to convey that may be canceled at any time and 14
for any reason by the purchaser without penalty; 15
(h) A conveyance of a unit restricted to nonresidential uses, 16
except and to the extent otherwise agreed to in writing by the seller 17
and purchaser of that unit. 18
(3) RCW 64.90.665, 64.90.670, 64.90.675, 64.90.680, 64.90.690, 19
and 64.90.695 apply only to condominiums created under this chapter, 20
and do not apply to other common interest communities.21
(4) RCW 64.90.640 applies to all units subject to this chapter 22
unless the buyer of a unit within a common interest community has 23
expressly waived the receipt of a resale certificate because it is 24
unavailable. For purposes of this subsection and RCW 64.90.640(1), a 25
resale certificate is unavailable if:26
(a) The seller attests that the association failed to provide the 27
resale certificate within 10 days of request and delivery of payment 28
pursuant to the requirements of RCW 64.90.640(2);29
(b) The seller indicates in the seller disclosure statement 30
required by chapter 64.06 RCW that there is no homeowners association 31
and no regular periodic assessments;32
(c) The seller attests that to the best of the seller's 33
knowledge, the association has not sent notice of an annual meeting, 34
budget ratification, or assessments, or attempted to enforce the 35
covenants in the last five years or since the seller purchased the 36
property, whichever is less; or37
(d) The seller attests that they have made three good faith 38
attempts to request the resale certificate and remit payment to the 39
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association or its authorized agent and has not received a response 1
within three business days. 2
Sec. 26. RCW 64.90.610 and 2024 c 321 s 327 are each amended to 3
read as follows: 4
(1) A public offering statement must contain the following 5
information: 6
(a) The name and address of the declarant; 7
(b) The name and address or location of the management company, 8
if any; 9
(c) The relationship of the management company to the declarant, 10
if any; 11
(d) The name and address of the common interest community;12
(e) A statement whether the common interest community is a 13
condominium, cooperative, plat community, or miscellaneous community;14
(f) A list, current as of the date the public offering statement 15
is prepared, of up to the five most recent common interest 16
communities in which at least one unit was sold by the declarant or 17
an affiliate of the declarant within the past five years, including 18
the names of the common interest communities and their addresses;19
(g) The nature of the interest being offered for sale;20
(h) A general description of the common interest community, 21
including to the extent known to the declarant, the types and number 22
of buildings that the declarant anticipates including in the common 23
interest community and the declarant's schedule of commencement and 24
completion of such buildings and principal common amenities;25
(i) The status of construction of the units and common elements, 26
including estimated dates of completion if not completed;27
(j) The number of existing units in the common interest 28
community; 29
(k) Brief descriptions of (i) the existing principal common 30
amenities, (ii) those amenities that will be added to the common 31
interest community, and (iii) those amenities that may be added to 32
the common interest community; 33
(l) A brief description of the limited common elements, other 34
than those described in RCW 64.90.210 (1)(b) and (3), that may be 35
allocated to the units being offered for sale; 36
(m) The identification of any rights of persons other than unit 37
owners to use any of the common elements, and a description of the 38
terms of such use; 39
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(n) The identification of any real property not in the common 1
interest community that unit owners have a right to use and a 2
description of the terms of such use; 3
(o) Any services the declarant provides or expenses that the 4
declarant pays that are not reflected in the budget, but that the 5
declarant expects may become at any subsequent time a common expense 6
of the association, and the projected common expense attributable to 7
each of those services or expenses; 8
(p) An estimate of any assessment or payment required by the 9
declaration to be paid by the purchaser of a unit at closing;10
(q) A brief description of any liens or monetary encumbrances on 11
the title to the common elements that will not be discharged at 12
closing; 13
(r) A brief description or a copy of any express construction 14
warranties to be provided to the purchaser; 15
(s) A statement, as required under RCW 64.35.210, as to whether 16
the units or common elements of the common interest community are 17
covered by a qualified warranty; 18
(t) If applicable to the common interest community, a statement 19
whether the common interest community contains any multiunit 20
residential building subject to chapter 64.55 RCW and, if so, 21
whether: 22
(i) The building enclosure has been designed and inspected to the 23
extent required under RCW 64.55.010 through 64.55.090; and24
(ii) Any repairs required under RCW 64.55.090 have been made;25
(u) A statement of any unsatisfied judgments or pending suits 26
against the association and the status of any pending suits material 27
to the common interest community of which the declarant has actual 28
knowledge; 29
(v) A statement of any litigation brought by an owners 30
association, unit owner, or governmental entity in which the 31
declarant or any affiliate of the declarant has been a defendant 32
arising out of the construction, sale, or administration of any 33
common interest community within the previous five years, together 34
with the results of the litigation, if known; 35
(w) A brief description of: 36
(i) Any restrictions on use or occupancy of the units contained 37
in the governing documents; 38
(ii) Any restrictions on the renting or leasing of units by the 39
declarant or other unit owners contained in the governing documents;40
p. 60 SB 5129
(iii) Any rights of first refusal to lease or purchase any unit 1
or any of the common elements contained in the governing documents; 2
and 3
(iv) Any restriction on the amount for which a unit may be sold 4
or on the amount that may be received by a unit owner on sale;5
(x) A description of the insurance coverage provided for the 6
benefit of unit owners; 7
(y) Any current or expected fees or charges not included in the 8
common expenses to be paid by unit owners for the use of the common 9
elements and other facilities related to the common interest 10
community, together with any fees or charges not included in the 11
common expenses to be paid by unit owners to any master or other 12
association; 13
(z) The extent, if any, to which bonds or other assurances from 14
third parties have been provided for completion of all improvements 15
that the declarant is obligated to build pursuant to RCW 64.90.695;16
(aa) In a cooperative, a statement whether the unit owners are 17
entitled, for federal, state, and local income tax purposes, to a 18
pass-through of any deductions for payments made by the association 19
for real estate taxes and interest paid to the holder of a security 20
interest encumbering the cooperative; 21
(bb) In a cooperative, a statement as to the effect on every unit 22
owner's interest in the cooperative if the association fails to pay 23
real estate taxes or payments due to the holder of a security 24
interest encumbering the cooperative; 25
(cc) In a leasehold common interest community, a statement 26
whether the expiration or termination of any lease may terminate the 27
common interest community or reduce its size, the recording number of 28
any such lease or a statement of where the complete lease may be 29
inspected, the date on which such lease is scheduled to expire, a 30
description of the real estate subject to such lease, a statement 31
whether the unit owners have a right to redeem the reversion, a 32
statement whether the unit owners have a right to remove any 33
improvements at the expiration or termination of such lease, a 34
statement of any rights of the unit owners to renew such lease, and a 35
reference to the sections of the declaration where such information 36
may be found; 37
(dd) A summary of, and information on how to obtain a full copy 38
of, any reserve study and a statement as to whether or not it was 39
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prepared in accordance with RCW 64.90.545 and 64.90.550 or the 1
governing documents; 2
(ee) A brief description of any arrangement described in RCW 3
64.90.110 binding the association; 4
(ff) The estimated current common expense liability for the units 5
being offered; 6
(gg) Except for real property taxes, real property assessments 7
and utility liens, any assessments, fees, or other charges known to 8
the declarant and which, if not paid, may constitute a lien against 9
any unit or common elements in favor of any governmental agency;10
(hh) A brief description of any parts of the common interest 11
community, other than the owner's unit, which any owner must 12
maintain; 13
(ii) Whether timesharing is permitted or prohibited, and, if 14
permitted, a statement that the purchaser of a timeshare unit is 15
entitled to receive the disclosure document required under chapter 16
64.36 RCW; 17
(jj) If the common interest community is subject to any special 18
declarant rights, the information required under RCW 64.90.615;19
(kk) Any liens on real estate to be conveyed to the association 20
required to be disclosed pursuant to RCW 64.90.650(3)(b);21
(ll) A list of any physical hazards known to the declarant that 22
particularly affect the common interest community or the immediate 23
vicinity in which the common interest community is located and which 24
are not readily ascertainable by the purchaser; 25
(mm) Any building code violation of which the declarant has 26
actual knowledge and which has not been corrected;27
(nn) If the common interest community contains one or more 28
conversion buildings, the information required under RCW 64.90.620 29
and 64.90.655(6)(a); 30
(oo) If the public offering statement is related to conveyance of 31
a unit in a multiunit residential building as defined in RCW 32
64.55.010, for which the final certificate of occupancy was issued 33
more than 60 calendar months prior to the preparation of the public 34
offering statement either: A copy of a report prepared by an 35
independent, licensed architect or engineer or a statement by the 36
declarant based on such report that describes, to the extent 37
reasonably ascertainable, the present condition of all structural 38
components and mechanical and electrical installations of the 39
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conversion buildings material to the use and enjoyment of the 1
conversion buildings; 2
(pp) Any other information and cross-references that the 3
declarant believes will be helpful in describing the common interest 4
community to the recipients of the public offering statement, all of 5
which may be included or not included at the option of the declarant;6
(qq) A description of any age-related occupancy restrictions 7
affecting the common interest community; and 8
(rr) In a condominium, plat community, or miscellaneous community 9
containing a unit not having horizontal boundaries described in the 10
declaration, a statement whether the unit may be sold without consent 11
of all the unit owners after termination of the common interest 12
community under RCW 64.90.290. 13
(2) The public offering statement must begin with notices 14
substantially in the following forms and in conspicuous type:15
(a) "RIGHT TO CANCEL. (1) You are entitled to receive a copy of 16
this public offering statement and all material amendments to this 17
public offering statement before conveyance of your unit. Under RCW 18
64.90.635, you have the right to cancel your contract for the 19
purchase of your unit within seven days after first receiving this 20
public offering statement. If this public offering statement is first 21
provided to you more than seven days before you sign your contract 22
for the purchase of your unit, you have no right to cancel your 23
contract. If this public offering statement is first provided to you 24
seven days or less before you sign your contract for the purchase of 25
your unit, you have the right to cancel, before conveyance of the 26
unit, the executed contract by delivering, no later than the seventh 27
day after first receiving this public offering statement, a notice of 28
cancellation pursuant to section (3) of this notice. If this public 29
offering statement is first provided to you less than seven days 30
before the closing date for the conveyance of your unit, you may, 31
before conveyance of your unit to you, extend the closing date to a 32
date not more than seven days after you first received this public 33
offering statement, so that you may have seven days to cancel your 34
contract for the purchase of your unit. 35
(2) You have no right to cancel your contract upon receipt of an 36
amendment to this public offering statement; however, this does not 37
eliminate any right to rescind your contract, due to the disclosure 38
of the information in the amendment, that is otherwise available to 39
you under generally applicable contract law. 40
p. 63 SB 5129
(3) If you elect to cancel your contract pursuant to this notice, 1
you may do so by hand-delivering notice of cancellation, or by 2
mailing notice of cancellation by prepaid United States mail, to the 3
seller at the address set forth in this public offering statement or 4
at the address of the seller's registered agent for service of 5
process. The date of such notice is the date of receipt, if hand-6
delivered, or the date of deposit in the United States mail, if 7
mailed. Cancellation is without penalty, and all payments made to the 8
seller by you before cancellation must be refunded promptly."9
(b) "OTHER DOCUMENTS CREATING BINDING LEGAL OBLIGATIONS. This 10
public offering statement is a summary of some of the significant 11
aspects of purchasing a unit in this common interest community. The 12
governing documents and the purchase agreement are complex, contain 13
other important information, and create binding legal obligations. 14
You should consider seeking the assistance of legal counsel."15
(c) "OTHER REPRESENTATIONS. You may not rely on any statement, 16
promise, model, depiction, or description unless it is (1) contained 17
in the public offering statement delivered to you or (2) made in 18
writing signed by the declarant or dealer or the declarant's or 19
dealer's agent identified in the public offering statement. A 20
statement of opinion, or a commendation of the real estate, its 21
quality, or its value, does not create a warranty, and a statement, 22
affirmation, promise, model, depiction, or description does not 23
create a warranty if it discloses that it is only proposed, is not 24
representative, or is subject to change." 25
(d) "MODEL UNITS. Model units are intended to provide you with a 26
general idea of what a finished unit might look like. Units being 27
offered for sale may vary from the model unit in terms of floor plan, 28
fixtures, finishes, and equipment. You are advised to obtain specific 29
information about the unit you are considering purchasing."30
(e) "RESERVE STUDY. The association [does] [does not] have a 31
current reserve study. Any reserve study should be reviewed 32
carefully. It may not include all reserve components that will 33
require major maintenance, repair, or replacement in future years, 34
and may not include regular contributions to a reserve account for 35
the cost of such maintenance, repair, or replacement. You may 36
encounter certain risks, including being required to pay as a special 37
assessment your share of expenses for the cost of major maintenance, 38
repair, or replacement of a reserve component, as a result of the 39
failure to: (1) Have a current reserve study or fully funded 40
p. 64 SB 5129
reserves, (2) include a component in a reserve study, or (3) provide 1
any or sufficient contributions to a reserve account for a 2
component." 3
(f) "DEPOSITS AND PAYMENTS. Only earnest money and reservation 4
deposits are required to be placed in an escrow or trust account. Any 5
other payments you make to the seller of a unit are at risk and may 6
be lost if the seller defaults." 7
(g) "CONSTRUCTION DEFECT CLAIMS. Chapter 64.50 RCW contains 8
important requirements you must follow before you may file a lawsuit 9
for defective construction against the seller or builder of your 10
home. Forty-five days before you file your lawsuit, you must deliver 11
to the seller or builder a written notice of any construction 12
conditions you allege are defective and provide your seller or 13
builder the opportunity to make an offer to repair or pay for the 14
defects. You are not obligated to accept any offer made by the 15
builder or seller. There are strict deadlines and procedures under 16
state law, and failure to follow them may affect your ability to file 17
a lawsuit." 18
(h) "ASSOCIATION INSURANCE. The extent to which association 19
insurance provides coverage for the benefit of unit owners (including 20
furnishings, fixtures, and equipment in a unit) is determined by the 21
provisions of the declaration and the association's insurance policy, 22
which may be modified from time to time. You and your personal 23
insurance agent should read the declaration and the association's 24
policy prior to closing to determine what insurance is required of 25
the association and unit owners, unit owners' rights and duties, what 26
is and is not covered by the association's policy, and what 27
additional insurance you should obtain." 28
(i) "QUALIFIED WARRANTY. Your unit [is] [is not] covered by a 29
qualified warranty under chapter 64.35 RCW." 30
(j) "THIS UNIT IS LOCATED WITHIN A COMMON INTEREST COMMUNITY AND 31
IS SUBJECT TO THE DECLARATION, BYLAWS, RULES, AND OTHER WRITTEN 32
INSTRUMENTS GRANTING AUTHORITY TO THE ASSOCIATION AS ADOPTED (THE 33
"GOVERNING DOCUMENTS"). 34
THE PURCHASER OF THIS UNIT WILL BE REQUIRED TO BE A MEMBER OF THE 35
ASSOCIATION AND WILL BE SUBJECT TO THE GOVERNING DOCUMENTS.36
THE GOVERNING DOCUMENTS WILL IMPOSE FINANCIAL OBLIGATIONS UPON 37
THE OWNER OF THE UNIT, INCLUDING AN OBLIGATION TO PAY ASSESSMENTS TO 38
THE ASSOCIATION WHICH MAY INCLUDE REGULAR AND SPECIAL ASSESSMENTS, 39
p. 65 SB 5129
FINES, FEES, INTEREST, LATE CHARGES, AND COSTS OF COLLECTION, 1
INCLUDING REASONABLE ATTORNEYS' FEES. 2
THE ASSOCIATION HAS A STATUTORY LIEN ON EACH INDIVIDUAL UNIT FOR 3
ANY UNPAID ASSESSMENT FROM THE TIME IT IS DUE. FAILURE TO PAY 4
ASSESSMENTS COULD RESULT IN THE FILING OF A LIEN ON THE UNIT AND LOSS 5
OF THE UNIT THROUGH FORECLOSURE. 6
THE GOVERNING DOCUMENTS MAY PROHIBIT OWNERS FROM MAKING CHANGES 7
TO THE UNIT WITHOUT REVIEW AND THE APPROVAL OF THE ASSOCIATION, AND 8
MAY ALSO IMPOSE RESTRICTIONS ON THE USE OF (([THE])) THE UNIT, 9
DISPLAY OF SIGNS, CERTAIN BEHAVIORS, AND OTHER ITEMS.10
PURCHASERS OF THIS UNIT SHOULD CAREFULLY REVIEW THE FINANCIAL 11
OBLIGATIONS OF MEMBERS OF THE ASSOCIATION, THE CURRENT STATE OF THE 12
ASSOCIATION'S FINANCES, THE CURRENT RESERVE STUDY, IF ANY, THE 13
GOVERNING DOCUMENTS, AND THE OTHER INFORMATION AVAILABLE IN THE 14
RESALE CERTIFICATE. THE GOVERNING DOCUMENTS CONTAIN IMPORTANT 15
INFORMATION AND CREATE BINDING LEGAL OBLIGATIONS. YOU SHOULD CONSIDER 16
SEEKING THE ASSISTANCE OF LEGAL COUNSEL." 17
(3) The public offering statement must include copies of each of 18
the following documents: The declaration; the map; the organizational 19
documents; the rules, if any; the current or proposed budget for the 20
association; a dated balance sheet of the association; any inspection 21
and repair report or reports prepared in accordance with the 22
requirements of RCW 64.55.090; and any qualified warranty provided to 23
a purchaser by a declarant together with a history of claims under 24
the qualified warranty. If any of these documents are not in final 25
form, the documents must be marked "draft" and, before closing the 26
sale of a unit, the purchaser must be given notice of any material 27
changes to the draft documents. 28
(4) A declarant must promptly amend the public offering statement 29
to reflect any material change in the information required under this 30
section. 31
Sec. 27. RCW 64.90.635 and 2024 c 321 s 328 are each amended to 32
read as follows: 33
(1) A person required to deliver a public offering statement 34
pursuant to RCW 64.90.605(3)(a) shall provide a purchaser with a copy 35
of the public offering statement and all amendments thereto before 36
conveyance of the unit((, and not later than the date of any contract 37
of sale )). The purchaser may cancel a contract for the purchase of 38
the unit within seven days after first receiving the public offering 39
p. 66 SB 5129
statement. If the public offering statement is first provided to a 1
purchaser more than seven days before execution of a contract for the 2
purchase of a unit, the purchaser does not have the right under this 3
section to cancel the executed contract. If the public offering 4
statement is first provided to a purchaser seven days or less before 5
the purchaser signs a contract for the purchase of a unit, the 6
purchaser, before conveyance of the unit to the purchaser, may cancel 7
the contract by delivering, no later than the seventh day after first 8
receiving the public offering statement, a notice of cancellation, 9
delivered pursuant to subsection (3) of this section. If the public 10
offering statement is first provided to a purchaser less than seven 11
days before the closing date for the conveyance of that unit, the 12
purchaser may, before conveyance of the unit to the purchaser, extend 13
the closing date to a date not more than seven days after the 14
purchaser first received the public offering statement.15
(2) A purchaser does not have the right under this section to 16
cancel a contract upon receipt of an amendment to a public offering 17
statement. This subsection does not eliminate any right that is 18
otherwise available to the purchaser under generally applicable 19
contract law to rescind the contract due to a material change in the 20
information disclosed in the amendment. 21
(3) If a purchaser elects to cancel a contract under subsection 22
(1) of this section, the purchaser may do so by hand-delivering 23
notice of cancellation, or by mailing notice of cancellation by 24
prepaid United States mail, to the declarant at the address set forth 25
in the public offering statement or at the address of the declarant's 26
registered agent for service of process. The date of such notice is 27
the date of receipt of delivery, if hand-delivered, or the date of 28
deposit in the United States mail, if mailed. Cancellation is without 29
penalty, and all payments made to the seller by the purchaser before 30
cancellation must be refunded promptly. There is no liability for 31
failure to deliver any amendment unless such failure would have 32
entitled the purchaser under generally applicable legal principles to 33
cancel the contract for the purchase of the unit had the undisclosed 34
information been evident to the purchaser before the closing of the 35
purchase. 36
(4) The language of the notice required under RCW 64.90.610(2)(a) 37
must not be construed to modify the rights set forth in this section.38
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Sec. 28. RCW 64.90.640 and 2024 c 321 s 329 are each amended to 1
read as follows: 2
(1) Except in the case of a sale when delivery of a public 3
offering statement is required, or unless exempt under RCW 4
64.90.600(2) or unless the buyer of a unit within a common interest 5
community has expressly waived the right to receive a resale 6
certificate because it is unavailable as provided in RCW 7
64.90.600(4), a unit owner must furnish to a purchaser before 8
execution of any contract for sale of a unit, or otherwise before 9
conveyance, a resale certificate, signed by an officer or authorized 10
agent of the association and based on the books and records of the 11
association and the actual knowledge of the person signing the 12
certificate, containing: 13
(a) A statement disclosing any right of first refusal or other 14
restraint on the free alienability of the unit contained in the 15
declaration; 16
(b) With respect to the selling unit owner's unit, a statement 17
setting forth the amount of any assessment currently due, any 18
delinquent assessments, and a statement of any special assessments 19
that have been levied and have not been paid even though not yet due;20
(c) A statement, which must be current to within 45 days, of any 21
assessments against any unit in the condominium that are past due 22
over 30 days; 23
(d) A statement, which must be current to within 45 days, of any 24
monetary obligation of the association that is past due over 30 days;25
(e) A statement of any other fees payable to the association by 26
unit owners; 27
(f) A statement of any expenditure or anticipated repair or 28
replacement cost reasonably anticipated to be in excess of five 29
percent of the board-approved annual budget of the association, 30
regardless of whether the unit owners are entitled to approve such 31
cost; 32
(g) A statement whether the association does or does not have a 33
reserve study prepared in accordance with RCW 64.90.545 and 34
64.90.550; 35
(h) The annual financial statement of the association, including 36
the audit report if it has been prepared, for the year immediately 37
preceding the current year; 38
(i) The most recent balance sheet and revenue and expense 39
statement, if any, of the association; 40
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(j) The current operating budget of the association;1
(k) A statement of any unsatisfied judgments against the 2
association and the status of any legal actions in which the 3
association is a party or a claimant as defined in RCW 64.50.010;4
(l) A statement describing any insurance coverage carried by the 5
association and contact information for the association's insurance 6
broker or agent; 7
(m) A statement as to whether the board has given or received 8
notice in a record that any existing uses, occupancies, alterations, 9
or improvements in or to the seller's unit or to the limited common 10
elements allocated to the unit violate any provision of the governing 11
documents; 12
(n) A statement of the number of units, if any, still owned by 13
the declarant, whether the declarant has transferred control of the 14
association to the unit owners, and the date of such transfer;15
(o) A statement as to whether the board has received notice in a 16
record from a governmental agency of any violation of environmental, 17
health, or building codes with respect to the seller's unit, the 18
limited common elements allocated to that unit, or any other portion 19
of the common interest community that has not been cured;20
(p) A statement of the remaining term of any leasehold estate 21
affecting the common interest community and the provisions governing 22
any extension or renewal of the leasehold estate; 23
(q) A statement of any restrictions in the declaration affecting 24
the amount that may be received by a unit owner upon sale;25
(r) In a cooperative, an accountant's statement, if any was 26
prepared, as to the deductibility for federal income tax purposes by 27
the unit owner of real estate taxes and interest paid by the 28
association; 29
(s) A statement describing any pending sale or encumbrance of 30
common elements; 31
(t) A statement disclosing the effect on the unit to be conveyed 32
of any restriction on the right to use or occupy the unit, including 33
a restriction on a lease or other rental of the unit;34
(u) A copy of the declaration, the organizational documents, the 35
rules or regulations of the association, the minutes of board 36
meetings and association meetings, except for any information exempt 37
from disclosure under RCW 64.90.495(3), for the last 12 months, a 38
summary of the current reserve study for the association, and any 39
other information reasonably requested by mortgagees of prospective 40
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purchasers of units. Information requested generally by the federal 1
national mortgage association, the federal home loan bank board, the 2
government national mortgage association, the veterans 3
administration, or the department of housing and urban development is 4
deemed reasonable if the information is reasonably available to the 5
association; 6
(v) A statement whether the units or common elements of the 7
common interest community are covered by a qualified warranty under 8
chapter 64.35 RCW and, if so, a history of claims known to the 9
association as having been made under any such warranty;10
(w) A description of any age-related occupancy restrictions 11
affecting the common interest community; 12
(x) A statement describing any requirements related to electric 13
vehicle charging stations located in the unit or the limited common 14
elements allocated to the unit, including application status, 15
insurance information, maintenance responsibilities, and any 16
associated costs; 17
(y) If the association does not have a reserve study that has 18
been prepared in accordance with RCW 64.90.545 and 64.90.550 or its 19
governing documents, the following disclosure: 20
"This association does not have a current reserve study. The lack 21
of a current reserve study poses certain risks to you, the purchaser. 22
Insufficient reserves may, under some circumstances, require you to 23
pay on demand as a special assessment your share of common expenses 24
for the cost of major maintenance, repair, or replacement of a common 25
element."; and 26
(z) The resale certificate must include a notice in substantially 27
the following form and in conspicuous type: 28
"THIS UNIT IS LOCATED WITHIN A COMMON INTEREST COMMUNITY 29
AND IS SUBJECT TO THE DECLARATION, BYLAWS, RULES, AND 30
OTHER WRITTEN INSTRUMENTS GRANTING AUTHORITY TO THE 31
ASSOCIATION AS ADOPTED (THE "GOVERNING DOCUMENTS").32
THE PURCHASER OF THIS UNIT WILL BE REQUIRED TO BE A 33
MEMBER OF THE ASSOCIATION AND WILL BE SUBJECT TO THE 34
GOVERNING DOCUMENTS. 35
THE GOVERNING DOCUMENTS WILL IMPOSE FINANCIAL OBLIGATIONS 36
UPON THE OWNER OF THE UNIT, INCLUDING AN OBLIGATION TO 37
PAY ASSESSMENTS TO THE ASSOCIATION WHICH MAY INCLUDE 38
REGULAR AND SPECIAL ASSESSMENTS, FINES, FEES, INTEREST, 39
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LATE CHARGES, AND COSTS OF COLLECTION, INCLUDING 1
REASONABLE ATTORNEYS' FEES. 2
THE ASSOCIATION HAS A STATUTORY LIEN ON EACH INDIVIDUAL 3
UNIT FOR ANY UNPAID ASSESSMENT FROM THE TIME IT IS DUE. 4
FAILURE TO PAY ASSESSMENTS COULD RESULT IN THE FILING OF 5
A LIEN ON THE UNIT AND LOSS OF THE UNIT THROUGH 6
FORECLOSURE. 7
THE GOVERNING DOCUMENTS MAY PROHIBIT OWNERS FROM MAKING 8
CHANGES TO THE UNIT WITHOUT REVIEW AND THE APPROVAL OF 9
THE ASSOCIATION, AND MAY ALSO IMPOSE RESTRICTIONS ON THE 10
USE OF (([THE])) THE UNIT, DISPLAY OF SIGNS, CERTAIN 11
BEHAVIORS, AND OTHER ITEMS. 12
PURCHASERS OF THIS UNIT SHOULD CAREFULLY REVIEW THE 13
FINANCIAL OBLIGATIONS OF MEMBERS OF THE ASSOCIATION, THE 14
CURRENT STATE OF THE ASSOCIATION'S FINANCES, THE CURRENT 15
RESERVE STUDY, IF ANY, THE GOVERNING DOCUMENTS, AND THE 16
OTHER INFORMATION AVAILABLE IN THE RESALE CERTIFICATE. 17
THE GOVERNING DOCUMENTS CONTAIN IMPORTANT INFORMATION AND 18
CREATE BINDING LEGAL OBLIGATIONS. YOU SHOULD CONSIDER 19
SEEKING THE ASSISTANCE OF LEGAL COUNSEL." 20
(2) The association, within 10 days after a request by a unit 21
owner, and subject to the payment of any fees imposed pursuant to RCW 22
64.90.405(2)(m), must furnish a resale certificate signed by an 23
officer or authorized agent of the association and containing the 24
information necessary to enable the unit owner to comply with this 25
section. For the purposes of this chapter, a reasonable charge for 26
the preparation of a resale certificate may not exceed $275. The 27
association may charge a unit owner a nominal fee not to exceed $100 28
for updating a resale certificate within six months of the unit 29
owner's request. A unit owner is not liable to the purchaser for any 30
erroneous information provided by the association and included in the 31
certificate. 32
(3)(a) A purchaser is not liable for any unpaid assessment or fee 33
greater than the amount set forth in the certificate prepared by the 34
association. 35
(b) ((A unit owner is not liable to a purchaser for the failure 36
or delay of the association to provide the certificate in a timely 37
manner, but the purchase contract is voidable by the purchaser until 38
the certificate has been provided and for five days thereafter or 39
until conveyance, whichever occurs first. )) The purchaser may cancel 40
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a contract for the purchase of the unit within five days after first 1
receiving the resale certificate. If the resale certificate is first 2
provided to a purchaser more than five days before execution of a 3
contract for the purchase of a unit, the purchaser does not have the 4
right under this section to cancel the executed contract. If the 5
resale certificate is first provided to a purchaser five days or less 6
before the purchaser signs a contract for the purchase of a unit, the 7
purchaser, before conveyance of the unit to the purchaser, may cancel 8
the contract by delivering, no later than the fifth day after first 9
receiving the resale certificate, a notice of cancellation to the 10
seller. If the resale certificate is first provided to a purchaser 11
less than five days before the closing date for the conveyance of 12
that unit, the purchaser may, before conveyance of the unit to the 13
purchaser, extend the closing date to a date not more than five days 14
after the purchaser first received the resale certificate.15
Sec. 29. RCW 64.90.665 and 2018 c 277 s 414 are each amended to 16
read as follows: 17
(1) Subject to subsections (2) and (3) of this section, express 18
warranties made by any declarant or dealer to a purchaser of a unit 19
in a condominium, if relied upon by the purchaser in purchasing the 20
unit, are created as follows: 21
(a) Any written affirmation of fact or written promise that 22
relates to the unit, its use, or rights appurtenant to the unit or 23
its use, improvements to the condominium that would directly benefit 24
the unit, or the right to use or have the benefit of facilities not 25
located in the condominium creates an express warranty that the unit 26
and related rights and uses will not materially deviate from the 27
affirmation or promise. 28
(b) Any written description of the physical characteristics of 29
the condominium at the time the purchase agreement is executed, 30
including plans and specifications of or for improvements, creates an 31
express warranty that the condominium will conform to the written 32
description in all material respects. 33
(c) Any written description of the quantity or extent of the real 34
estate comprising the condominium, including plats or surveys, 35
creates an express warranty that the condominium will conform to the 36
description, subject to customary tolerances. 37
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(d) A written statement that a purchaser may put a unit only to a 1
specified use is an express warranty that the specified use is 2
lawful. 3
(2) Subject to subsection (3) of this section, neither formal 4
words, such as "warranty" or "guarantee," nor a specific intention to 5
make a warranty are necessary to create an express warranty, but a 6
statement of opinion or a commendation of the real estate, its 7
quality, or its value does not create a warranty, and a statement, 8
affirmation, promise, model, depiction, or description does not 9
create a warranty if it discloses that it is only proposed, is not 10
representative, or is subject to change. 11
(3) A purchaser may not rely on any statement, affirmation, 12
promise, model, depiction, or description unless it is contained in 13
the public offering statement delivered to the purchaser or made in a 14
record signed by the declarant or dealer, or the declarant's or 15
dealer's agent identified in the public offering statement.16
(4) Any conveyance of a unit transfers to the purchaser all 17
express warranties of quality made by the declarant or dealer.18
Sec. 30. RCW 61.24.030 and 2023 c 206 s 2 are each amended to 19
read as follows: 20
It shall be requisite to a trustee's sale: 21
(1) That the deed of trust contains a power of sale;22
(2) That the deed of trust contains a statement that the real 23
property conveyed is not used principally for agricultural purposes; 24
provided, if the statement is false on the date the deed of trust was 25
granted or amended to include that statement, and false on the date 26
of the trustee's sale, then the deed of trust must be foreclosed 27
judicially. Real property is used for agricultural purposes if it is 28
used in an operation that produces crops, livestock, or aquatic 29
goods; 30
(3) That a default has occurred in the obligation secured or a 31
covenant of the grantor, which by the terms of the deed of trust 32
makes operative the power to sell; 33
(4) That no action commenced by the beneficiary of the deed of 34
trust is now pending to seek satisfaction of an obligation secured by 35
the deed of trust in any court by reason of the grantor's default on 36
the obligation secured: PROVIDED, That (a) the seeking of the 37
appointment of a receiver, or the filing of a civil case to obtain 38
court approval to access, secure, maintain, and preserve property 39
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from waste or nuisance, shall not constitute an action for purposes 1
of this chapter; and (b) if a receiver is appointed, the grantor 2
shall be entitled to any rents or profits derived from property 3
subject to a homestead as defined in RCW 6.13.010. If the deed of 4
trust was granted to secure a commercial loan, this subsection shall 5
not apply to actions brought to enforce any other lien or security 6
interest granted to secure the obligation secured by the deed of 7
trust being foreclosed; 8
(5) That the deed of trust has been recorded in each county in 9
which the land or some part thereof is situated; 10
(6) That prior to the date of the notice of trustee's sale and 11
continuing thereafter through the date of the trustee's sale, the 12
trustee must maintain a street address in this state where personal 13
service of process may be made, and the trustee must maintain a 14
physical presence and have telephone service at such address;15
(7)(a) That, for residential real property of up to four units, 16
before the notice of trustee's sale is recorded, transmitted, or 17
served, the trustee shall have proof that the beneficiary is the 18
holder of any promissory note or other obligation secured by the deed 19
of trust. A declaration by the beneficiary made under the penalty of 20
perjury stating that the beneficiary is the holder of any promissory 21
note or other obligation secured by the deed of trust shall be 22
sufficient proof as required under this subsection.23
(b) Unless the trustee has violated his or her duty under RCW 24
61.24.010(4), the trustee is entitled to rely on the beneficiary's 25
declaration as evidence of proof required under this subsection.26
(c) This subsection (7) does not apply to association 27
beneficiaries subject to chapter 64.32, 64.34, or 64.38 RCW;28
(8) That at least 30 days before notice of sale shall be 29
recorded, transmitted or served, written notice of default and, for 30
residential real property of up to four units, the beneficiary 31
declaration specified in subsection (7)(a) of this section shall be 32
transmitted by the beneficiary or trustee to the borrower and grantor 33
at their last known addresses by both first-class and either 34
registered or certified mail, return receipt requested, and the 35
beneficiary or trustee shall cause to be posted in a conspicuous 36
place on the premises, a copy of the notice, or personally served on 37
the borrower and grantor. This notice shall contain the following 38
information: 39
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(a) A description of the property which is then subject to the 1
deed of trust; 2
(b) A statement identifying each county in which the deed of 3
trust is recorded and the document number given to the deed of trust 4
upon recording by each county auditor or recording officer;5
(c) A statement that the beneficiary has declared the borrower or 6
grantor to be in default, and a concise statement of the default 7
alleged; 8
(d) An itemized account of the amount or amounts in arrears if 9
the default alleged is failure to make payments; 10
(e) An itemized account of all other specific charges, costs, or 11
fees that the borrower, grantor, or any guarantor is or may be 12
obliged to pay to reinstate the deed of trust before the recording of 13
the notice of sale; 14
(f) A statement showing the total of (d) and (e) of this 15
subsection, designated clearly and conspicuously as the amount 16
necessary to reinstate the note and deed of trust before the 17
recording of the notice of sale; 18
(g) A statement that failure to cure the alleged default within 19
30 days of the date of mailing of the notice, or if personally 20
served, within 30 days of the date of personal service thereof, may 21
lead to recordation, transmittal, and publication of a notice of 22
sale, and that the property described in (a) of this subsection may 23
be sold at public auction at a date no less than 120 days in the 24
future, or no less than 150 days in the future if the borrower 25
received a letter under RCW 61.24.031; 26
(h) A statement that the effect of the recordation, transmittal, 27
and publication of a notice of sale will be to (i) increase the costs 28
and fees and (ii) publicize the default and advertise the grantor's 29
property for sale; 30
(i) A statement that the effect of the sale of the grantor's 31
property by the trustee will be to deprive the grantor of all their 32
interest in the property described in (a) of this subsection;33
(j) A statement that the borrower, grantor, and any guarantor has 34
recourse to the courts pursuant to RCW 61.24.130 to contest the 35
alleged default on any proper ground; 36
(k) In the event the property secured by the deed of trust is 37
residential real property of up to four units, a statement, 38
prominently set out at the beginning of the notice, which shall state 39
as follows: 40
p. 75 SB 5129
"THIS NOTICE IS ONE STEP IN A PROCESS THAT COULD RESULT IN YOUR1
LOSING YOUR HOME.2
You may be eligible for mediation in front of a neutral third party 3
to help save your home. 4
CONTACT A HOUSING COUNSELOR OR AN ATTORNEY LICENSED IN WASHINGTON NOW 5
to assess your situation and refer you to mediation if you might 6
benefit. Mediation MUST be requested between the time you receive the 7
Notice of Default and no later than 90 calendar days BEFORE the date 8
of sale listed in the Notice of Trustee Sale. If an amended Notice of 9
Trustee Sale is recorded providing a 45-day notice of the sale, 10
mediation must be requested no later than 25 calendar days BEFORE the 11
date of sale listed in the amended Notice of Trustee Sale.12
DO NOT DELAY. If you do nothing, a notice of sale may be issued as 13
soon as 30 days from the date of this notice of default. The notice 14
of sale will provide a minimum of 120 days' notice of the date of the 15
actual foreclosure sale. 16
BE CAREFUL of people who claim they can help you. There are many 17
individuals and businesses that prey upon borrowers in distress.18
REFER TO THE CONTACTS BELOW for sources of assistance.19
SEEKING ASSISTANCE20
Housing counselors and legal assistance may be available at little or 21
no cost to you. If you would like assistance in determining your 22
rights and opportunities to keep your house, you may contact the 23
following: 24
The statewide foreclosure hotline for assistance and referral to 25
housing counselors recommended by the Housing Finance Commission26
Telephone: . . . . . . . Website: . . . . . . 27
The United States Department of Housing and Urban Development28
Telephone: . . . . . . . Website: . . . . . . . 29
The statewide civil legal aid hotline for assistance and referrals to 30
other housing counselors and attorneys 31
Telephone: . . . . . . . Website: . . . . . ." 32
The beneficiary or trustee shall obtain the toll -free numbers and 33
website information from the department for inclusion in the notice;34
(l) In the event the property secured by the deed of trust is 35
residential real property of up to four units, the name and address 36
of the holder of any promissory note or other obligation secured by 37
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the deed of trust and the name, address, and telephone number of a 1
party acting as a servicer of the obligations secured by the deed of 2
trust; 3
(m) For notices issued after June 30, 2018, on the top of the 4
first page of the notice: 5
(i) The current beneficiary of the deed of trust;6
(ii) The current mortgage servicer for the deed of trust; and7
(iii) The current trustee for the deed of trust;8
(9) That, for residential real property of up to four units, 9
before the notice of the trustee's sale is recorded, transmitted, or 10
served, the beneficiary has complied with RCW 61.24.031 and, if 11
applicable, RCW 61.24.163; 12
(10) That, in the case where the borrower or grantor is known to 13
the mortgage servicer or trustee to be deceased, the notice required 14
under subsection (8) of this section must be sent to any spouse, 15
child, or parent of the borrower or grantor known to the trustee or 16
mortgage servicer, and to any owner of record of the property, at any 17
address provided to the trustee or mortgage servicer, and to the 18
property addressed to the heirs and devisees of the borrower.19
(a) If the name or address of any spouse, child, or parent of 20
such deceased borrower or grantor cannot be ascertained with use of 21
reasonable diligence, the trustee must execute and record with the 22
notice of sale a declaration attesting to the same.23
(b) Reasonable diligence for the purposes of this subsection (10) 24
means the trustee shall search in the county where the property is 25
located, the public records and information for any obituary, will, 26
death certificate, or case in probate within the county for the 27
borrower and grantor; 28
(11) Upon written notice identifying the property address and the 29
name of the borrower to the servicer or trustee by someone claiming 30
to be a successor in interest to the borrower's or grantor's property 31
rights, but who is not a party to the loan or promissory note or 32
other obligation secured by the deed of trust, a trustee shall not 33
record a notice of sale pursuant to RCW 61.24.040 until the trustee 34
or mortgage servicer completes the following: 35
(a) Acknowledges the notice in writing and requests reasonable 36
documentation of the death of the borrower or grantor from the 37
claimant including, but not limited to, a death certificate or other 38
written evidence of the death of the borrower or grantor. Other 39
written evidence of the death of the borrower or grantor may include 40
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an obituary, a published death notice, or documentation of an open 1
probate action for the estate of the borrower or grantor. The 2
claimant must be allowed 30 days from the date of this request to 3
present this documentation. If the trustee or mortgage servicer has 4
already obtained sufficient proof of the borrower's death, it may 5
proceed by acknowledging the claimant's notice in writing and issuing 6
a request under (b) of this subsection. 7
(b) If the mortgage servicer or trustee obtains or receives 8
written documentation of the death of the borrower or grantor from 9
the claimant, or otherwise independently confirms the death of the 10
borrower or grantor, then the servicer or trustee must request in 11
writing documentation from the claimant demonstrating the ownership 12
interest of the claimant in the real property. A claimant has 60 days 13
from the date of the request to present this documentation. 14
Documentation demonstrating the ownership interest of the claimant in 15
the real property includes, but is not limited to, one of the 16
following: 17
(i) Excerpts of a trust document noting the claimant as a 18
beneficiary of a trust with title to the real property;19
(ii) A will of the borrower or grantor listing the claimant as an 20
heir or devisee with respect to the real property;21
(iii) A probate order or finding of heirship issued by any court 22
documenting the claimant as an heir or devisee or awarding the real 23
property to the claimant; 24
(iv) A recorded lack of probate affidavit signed by any heir 25
listing the claimant as an heir of the borrower or grantor pursuant 26
to the laws of intestacy; 27
(v) A deed, such as a personal representative's deed, trustee's 28
deed issued on behalf of a trust, statutory warranty deed, transfer 29
on death deed, or other deed, giving any ownership interest to the 30
claimant resulting from the death of the borrower or grantor or 31
executed by the borrower or grantor for estate planning purposes; and32
(vi) Other proof documenting the claimant as an heir of the 33
borrower or grantor pursuant to state rules of intestacy set forth in 34
chapter 11.04 RCW. 35
(c) If the mortgage servicer or trustee receives written 36
documentation demonstrating the ownership interest of the claimant 37
prior to the expiration of the 60 days provided in (b) of this 38
subsection, then the servicer or trustee must, within 20 days of 39
receipt of proof of ownership interest, provide the claimant with, at 40
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a minimum, the loan balance, interest rate and interest reset dates 1
and amounts, balloon payments if any, prepayment penalties if any, 2
the basis for the default, the monthly payment amount, reinstatement 3
amounts or conditions, payoff amounts, and information on how and 4
where payments should be made. The mortgage servicers shall also 5
provide the claimant application materials and information, or a 6
description of the process, necessary to request a loan assumption 7
and modification. 8
(d) Upon receipt by the trustee or the mortgage servicer of the 9
documentation establishing claimant's ownership interest in the real 10
property, that claimant shall be deemed a "successor in interest" for 11
the purposes of this section. 12
(e) There may be more than one successor in interest to the 13
borrower's property rights. The trustee and mortgage servicer shall 14
apply the provisions of this section to each successor in interest. 15
In the case of multiple successors in interest, where one or more do 16
not wish to assume the loan as coborrowers or coapplicants, a 17
mortgage servicer may require any nonapplicant successor in interest 18
to consent in writing to the application for loan assumption.19
(f) The existence of a successor in interest under this section 20
does not impose an affirmative duty on a mortgage servicer or alter 21
any obligation the mortgage servicer has to provide a loan 22
modification to the successor in interest. If a successor in interest 23
assumes the loan, he or she may be required to otherwise qualify for 24
available foreclosure prevention alternatives offered by the mortgage 25
servicer. 26
(g) (c), (e), and (f) of this subsection (11) do not apply to 27
association beneficiaries subject to chapter 64.32, 64.34, ((or)) 28
64.38, or 64.90 RCW; and 29
(12) Nothing in this section shall prejudice the right of the 30
mortgage servicer or beneficiary from discontinuing any foreclosure 31
action initiated under the deed of trust act in favor of other 32
allowed methods for pursuit of foreclosure of the security interest 33
or deed of trust security interest. 34
NEW SECTION. Sec. 31. The following acts or parts of acts, as 35
now existing or hereafter amended, are each repealed, effective 36
January 1, 2026:37
(1) RCW 64.32.290 (Electric vehicle charging stations) and 2022 c 38
27 s 1; 39
p. 79 SB 5129
(2) RCW 64.32.350 (Heat pumps) and 2024 c 128 s 1;1
(3) RCW 64.34.332 (Meetings) and 2021 c 227 s 5 & 1989 c 43 s 2
3-109; 3
(4) RCW 64.34.393 (Heat pumps) and 2024 c 128 s 2;4
(5) RCW 64.34.395 (Electric vehicle charging stations) and 2022 c 5
27 s 2; 6
(6) RCW 64.38.035 (Association meetings — Notice— Board of 7
directors) and 2021 c 227 s 10, 2014 c 20 s 1, 2013 c 108 s 1, & 1995 8
c 283 s 7; 9
(7) RCW 64.38.062 (Electric vehicle charging stations) and 2022 c 10
27 s 3; and 11
(8) RCW 64.38.180 (Heat pumps) and 2024 c 128 s 3.12
NEW SECTION. Sec. 32. RCW 64.90.509 (Governing documents, may 13
not vary provision of chapter — Exceptions) and 2024 c 321 s 303 are 14
each repealed.15
NEW SECTION. Sec. 33. 2024 c 337 s 4 is repealed.16
NEW SECTION. Sec. 34. (1) Sections 2 through 4, 11, 18, 20, and 17
24 of this act take effect January 1, 2026.18
(2) Section 33 of this act takes effect January 1, 2028.19
NEW SECTION. Sec. 35. Section 30 of this act expires January 1, 20
2028.21
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