[WSBARP] Pending Legislation Issue; HB 1793

[Dwight Bickel]

The House Committee on Civil Rights & Judiciary is considering HB 1793<https://app.leg.wa.gov/billsummary?BillNumber=1793&Year=2021&Initiative=false> at a hearing on Friday. The Bill enables people in common interest communities to install electric vehicle charging equipment upon property that is owned by others.

There is an unintended consequence that is contrary to long-standing real property law. The Bill states all the charging station equipment installed at the cost of the EV owner remains owned by the EV owner, says the EV owner can remove the equipment, or the EV owner can sell it to a purchaser or to a Homeowner’s Ass’n. However, the statute defines the charging station to include the high voltage wiring from the circuit panel to the EV charging location, that may be within walls, attached in conduit over long distances, or buried outside the buildings to the parking location. In most cases, the property where the charging equipment is installed will be owned in common by all owners, or by a Homeowner’s Ass’n.

In many systems, there will be a unit next to the EV, attached to a wall or a post, that would be removable. But the wiring connecting to it should be a fixture in real property law, and should not be owned separately from the real property ownership. Further, that portion of the charging station should not be removable.

What method of transfer documentation will be used by real estate brokers and escrow agents? How will lenders and purchasers respond to title reports that split vesting, or unfamiliar exceptions related to the ownership of fixtures? Will the value be taxed separately for real property tax? Will the DOR apply excise tax to the sale of the charging station equipment?

A proposed remedy is one change to the Bill:

(7)(b) Equipment for the electric vehicle charging station installed at the unit owner’s cost that is removable without damage to the property owned by others may be removed at the cost of the owner. Removable equipment for the electric vehicle charging station shall not be real property in any form, including fixture law.  An electric vehicle charging station installed at the unit owner's cost may be is property of the unit owner. Upon sale of the unit, if the charging station is removable, the unit owner may either remove it or sell it to the buyer of the unit or to the association for an agreed price. Nothing in this subsection requires the buyer or the association to purchase the electric vehicle charging station.

Recommendations from the real property lawyers should be sent to the Representatives of that Committee.

Dwight A. Bickel
Real Property Title Advisor
Washington Title Professional
Dwight at DwightBickel.com<mailto:Dwight at DwightBickel.com>
https:/dwightbickel.com
206-484-1976

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