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<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt">Yes, that is what I am getting at. What are the buyer's remedies if they discover the disclosure statement was inaccurate? If the discovery is within the three-day window, the
buyer can rescind under 64.0, cut and dried. There ought to be a cut and dried solution even if the discovery is after the three-day window, but there isn’t. You have to get into a mutual mistake analysis, which also involves asking whether there was constructive
knowledge or an assumption of risk. I think the legislature should have left some mechanism in place that did not require going to court in case a disclosure statement inaccuracy was discovered late in the closing process.<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D">Rod Harmon</span></font><o:p></o:p></p>
<p class="MsoNormal"><b><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold"> </span></font></b><o:p></o:p></p>
<p class="MsoNormal"><b><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold">RODNEY T. HARMON</span></font></b><o:p></o:p></p>
<p class="MsoNormal"><b><font size="2" color="#1f497d" face="Arial"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold"> Attorney at Law</span></font></b><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> P.O. Box 1066</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Bothell, WA 98041</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Tel: (425) 402-7800</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Fax: (425) 458-9096</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="http://www.rodharmon.com"><font color="#0563c1"><span style="color:#0563C1">www.rodharmon.com</span></font></a></span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="mailto:rodharmon@msn.com"><font color="#0563c1"><span style="color:#0563C1">rodharmon@msn.com</span></font></a></span></font><o:p></o:p></p>
<p class="MsoNormal" style="margin-top:6.0pt"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
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<p class="MsoNormal"><b><font size="2" face="Calibri"><span style="font-size:11.0pt;font-weight:bold">From:</span></font></b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b><span style="font-weight:bold">On Behalf Of </span></b>Kary Krismer<br>
<b><span style="font-weight:bold">Sent:</span></b> Tuesday, March 31, 2020 10:27 AM<br>
<b><span style="font-weight:bold">To:</span></b> wsbarp@lists.wsbarppt.com<br>
<b><span style="font-weight:bold">Subject:</span></b> Re: [WSBARP] Why doesn't a buyer get a new three-day rescission period after discovering inaccuracy in the seller's real property disclosure statement?<o:p></o:p></p>
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<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p><font size="2" face="Calibri"><span style="font-size:11.0pt">I don't know about the legislative history, but I think the purpose is likely related to the inspection process. From the inspection response the seller will frequently learn of new conditions
to the property and the amendment merely keeps the seller from needing to amend the disclosure statement --for that particular sale to that particular buyer.</span></font><font size="3"><span style="font-size:12.0pt"><o:p></o:p></span></font></p>
<p><font size="2" face="Calibri"><span style="font-size:11.0pt">Also, the purpose of the disclosure statement is to disclose conditions to the buyer. If the buyer informs the seller that purpose would not be fulfilled because the buyer by definition already
knows.<o:p></o:p></span></font></p>
<p><font size="2" face="Calibri"><span style="font-size:11.0pt">What you're getting at is seemingly more what are the buyer's remedies if they discover the disclosure statement was inaccurate.<o:p></o:p></span></font></p>
<pre><font size="2" face="Courier New"><span style="font-size:10.0pt">Kary L. Krismer<o:p></o:p></span></font></pre>
<pre><font size="2" face="Courier New"><span style="font-size:10.0pt">John L. Scott, Inc. <o:p></o:p></span></font></pre>
<pre><font size="2" face="Courier New"><span style="font-size:10.0pt">206 723-2148<o:p></o:p></span></font></pre>
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<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt">On 3/31/2020 10:14 AM, Rod Harmon wrote:<o:p></o:p></span></font></p>
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<font size="2" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;letter-spacing:.1pt">As originally enacted in 1994, RCW 64.06.040 required a seller to amend the seller disclosure statement if the seller became aware of additional
information which made any of the disclosures inaccurate. An amendment starts a new three-business-day rescission period. In the 2009 amendments, that requirement was amended to limit the duty to amend to situations in which
</span></font><font size="2" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white">"the seller
</span></font><font size="2" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">((bec<s>omes aware</s>))<span style="background:white">
<u>learns from a source other than the buyer or others acting on the buyer's behalf such as an inspector</u> of additional information … which makes any of the disclosures made inaccurate</span>."<span style="letter-spacing:.1pt"> With that amendment, if the
buyer discovered the additional information after the three-business-day period expired but before closing, the seller was not obligated to amend the disclosure statement. For example, say the buyer discovers that the property is in an environmentally critical
area and the disclosure statement says it is not. Because the rescission period had expired, the buyer would not be able to use the disclosure statute to rescind. This seems strange to me.</span></span></font><o:p></o:p></p>
<p class="incr5" style="mso-margin-top-alt:0in;margin-right:6.0pt;margin-bottom:6.0pt;margin-left:0in;background:white">
<font size="2" color="#313335" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#313335;letter-spacing:.1pt">I can see how in that case the buyer could rescind on a common law ground, preserved under RCW 64.06.050. Specifically,
the buyer could rescind based upon a mutual mistake about a material fact, or, if the seller knew of the ECA designation, unilateral mistake by the buyer and concealment by the seller. But I am having trouble understanding why the legislature amended the
statute so that the buyer could not use RCW 64.06 to rescind the contract. I did not find anything in the legislative history that addresses it. I would appreciate any insight anyone has into the reason for this amendment. I am hoping someone on this listserv
had a hand in drafting it.</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"> <o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D">Rod Harmon</span></font><o:p></o:p></p>
<p class="MsoNormal"><b><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold"> </span></font></b><o:p></o:p></p>
<p class="MsoNormal"><b><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold">RODNEY T. HARMON</span></font></b><o:p></o:p></p>
<p class="MsoNormal"><b><font size="2" color="#1f497d" face="Arial"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold"> Attorney at Law</span></font></b><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> P.O. Box 1066</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Bothell, WA 98041</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Tel: (425) 402-7800</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Fax: (425) 458-9096</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> </span></font><a href="https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.rodharmon.com%2F&data=02%7C01%7C%7C9d1351cc189745c7214108d7d59a15c4%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637212730069258808&sdata=DkomXvF%2BzmBIGqdeMlzDYpQonkYJvcfBPiA6Mhp8gv4%3D&reserved=0"><font size="2" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">www.rodharmon.com</span></font></a><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> </span></font><a href="mailto:rodharmon@msn.com"><font size="2" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">rodharmon@msn.com</span></font></a><o:p></o:p></p>
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<pre><font size="2" face="Courier New"><span style="font-size:10.0pt">***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<o:p></o:p></span></font></pre>
<pre><font size="2" face="Courier New"><span style="font-size:10.0pt"><o:p> </o:p></span></font></pre>
<pre><font size="2" face="Courier New"><span style="font-size:10.0pt">_______________________________________________<o:p></o:p></span></font></pre>
<pre><font size="2" face="Courier New"><span style="font-size:10.0pt">WSBARP mailing list<o:p></o:p></span></font></pre>
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