- June 28, 2018
- All Washington Issuing Offices
- UNDERWRITING - WUCIOA (Washington Common Interest Ownership Act) CIC (Common Interest Communities)
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.
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".
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