[WSBARP] SB 5796 expands WUCIOA to nearly all plat communities

[Annie Fitzsimmons]

Hello Real Property lawyers - There is a bill that will be heard tomorrow at 8 am that may be of interest to you.  SB 5796  will expand WUCIOA's application to all plat communities regardless of when the community was formed.  The small community exemption still applies (12 or fewer lots with annual dues of $300 or less) but frankly, I've found the exemption to be useless.  The bill will require that all common interest communities (condos and plat communities) comply with WUCIOA and repeals RCW 64.32, 64.34 and 64.38.  (Here is a link to the bill: https://lawfilesext.leg.wa.gov/biennium/2023-24/Pdf/Bills/Senate Bills/5796.pdf?q=20240117141622)
 
The Bar Association's Real Property, Probate and Trust section opposes the bill as drafted and will have a representative at the hearing to testify in opposition to the bill.  If you'd like to testify, in favor or in opposition, the link to register is below (click "testify" next to "2. SB 5796")  You have to register to testify not later than 7 am tomorrow.  The Legislature is operating on a hybrid system so while the hearing will be conducted in person in the Senate building, you can testify by zoom by clicking the link below.  
 
If you are not familiar with WUCIOA, this change in law will require all plat communities, regardless of when they were formed, with the exception of any that may benefit from the small community exemption, to comply fully with WUCIOA, including all administrative burdens and the requirement for delivery of resale certificates whenever a home in the community is sold.   The resale certificate requirement will necessitate seller's payment of a fee for preparation of the resale certificate, make the transaction vulnerable to buyer's rescission for five days after delivery of the resale certificate and require associations to have the ability to deliver the resale certificate timely.  In short, it is my belief that this bill will force all HOAs to hire professional management or operate out of compliance with the law.  Failure to comply with the law will increase the financial and liability stakes for associations and their lay person leadership team.  The cost of buying a home will increase, the cost of homeownership will increase and buyer's right of rescission will instill vulnerability in every transaction.
 
Thank you - Annie Fitzsimmons

Annette T. Fitzsimmons P.S.
P.O. Box 430
Belfair, WA 98528

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> Senate Law & Justice - 1/18/2024 8:00 AM
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> Full Committee 
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> Senate Hearing Rm 4 and Virtual
> J.A. Cherberg Building
> Olympia, WA
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> 2.SB 5796 https://app.leg.wa.gov/billsummary?BillNumber=5796&Year=2023&Initiative=false - Concerning common interest communities. (Remote Testimony Available). - Testify https://app.leg.wa.gov/csi/Senate?cId=17548&d=01/18/24%208:00%20AM&aId=156184
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