Bulletin: WA2018002

Date:
June 28, 2018
To:
All Washington Issuing Offices
RE:
UNDERWRITING - WUCIOA (Washington Common Interest Ownership Act) CIC (Common Interest Communities)

Dear Associates:

Washington State has a new condominium statute effective July 1, 2018, approved as SB 6175. (A copy is attached for reference.)

Public Offering Statements

Prior to WUCIOA, only sellers of condominiums were required to provide purchasers with public offering statements and resale certificates for the sale, resale, and conversion of units. Under WUCIOA, these disclosure documents must now be provided for all sales, resales, and conversions of units within any type of CIC, this includes subdivision plats and cooperatives. Among other things, disclosure documents must contain a general description of the CIC, a schedule for completion of any incomplete improvements, a copy of the declaration, bylaws, any community rules, and an estimate of any assessments due at closing. WUCIOA does not discuss penalties for failing to deliver a public offering statement. But delivery of a public offering statement can trigger a purchaser’s seven-day right to cancel a purchase contract, so it is important to deliver a public offering statement before or shortly after a purchase contract is signed.

Applicability and Exemptions

CICs existing before July 1, 2018, generally are not subject to WUCIOA but may elect to opt into its requirements. Small plat communities with no more than 12 units and no more than a $300 annual assessment per unit are exempt from most of WUCIOA’s provisions, so long as the declarant does not reserve any right to future alteration of the CIC.

Below are examples of possible exceptions that may be incorporated into a commitment.

FOR CONDOMINIUMS

The Company calls attention to provisions contained in the Washington Condominium Act (RCW 64) and Senate Bill 6175 Washington Uniform Common Interest Ownership Act requiring delivery to the Proposed Purchaser of either a "Public Offering Statement" or "Resale Certificate".

FOR SUBDIVISION PLATS AND COOPERATIVES

The company calls attention to provisions contained in Washington Uniform Common Interest Ownership Act, Senate Bill 6175 providing that Plats recorded after July 1, 2018, that meet the requirements under Senate Bill 6175 will require delivery to the Proposed Purchaser of either a "Public Offering Statement" or "Resale Certificate".

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None