64.34.005 | Findings -- Intent -- 2004 c 201. |
64.34.010 | Applicability. |
64.34.020 | Definitions. |
64.34.030 | Variation by agreement. |
64.34.040 | Separate interests -- Taxation. |
64.34.050 | Local ordinances, regulations, and building codes -- Applicability. |
64.34.060 | Condemnation. |
64.34.070 | Law applicable -- General principles. |
64.34.080 | Contracts -- Unconscionability. |
64.34.090 | Obligation of good faith. |
64.34.100 | Remedies liberally administered. |
64.34.200 | Creation of condominium. |
64.34.202 | Reservation of condominium name. |
64.34.204 | Unit boundaries. |
64.34.208 | Declaration and bylaws -- Construction and validity. |
64.34.212 | Description of units. |
64.34.216 | Contents of declaration. |
64.34.220 | Leasehold condominiums. |
64.34.224 | Common element interests, votes, and expenses -- Allocation. |
64.34.228 | Limited common elements. |
64.34.232 | Survey maps and plans. |
64.34.236 | Development rights. |
64.34.240 | Alterations of units. |
64.34.244 | Relocation of boundaries -- Adjoining units. |
64.34.248 | Subdivision of units. |
64.34.252 | Monuments as boundaries. |
64.34.256 | Use by declarant. |
64.34.260 | Easement rights -- Common elements. |
64.34.264 | Amendment of declaration. |
64.34.268 | Termination of condominium. |
64.34.272 | Rights of secured lenders. |
64.34.276 | Master associations. |
64.34.278 | Delegation of power to subassociations. |
64.34.280 | Merger or consolidation. |
64.34.300 | Unit owners' association -- Organization. |
64.34.304 | Unit owners' association -- Powers. |
64.34.308 | Board of directors and officers. |
64.34.312 | Control of association -- Transfer. |
64.34.316 | Special declarant rights -- Transfer. |
64.34.320 | Contracts and leases -- Declarant -- Termination. |
64.34.324 | Bylaws. |
64.34.328 | Upkeep of condominium. |
64.34.332 | Meetings. |
64.34.336 | Quorums. |
64.34.340 | Voting -- Proxies. |
64.34.344 | Tort and contract liability. |
64.34.348 | Common elements -- Conveyance -- Encumbrance. |
64.34.352 | Insurance. |
64.34.354 | Insurance -- Conveyance. |
64.34.356 | Surplus funds. |
64.34.360 | Common expenses -- Assessments. |
64.34.364 | Lien for assessments. |
64.34.368 | Liens -- General provisions. |
64.34.372 | Association records -- Funds. |
64.34.376 | Association as trustee. |
64.34.400 | Applicability -- Waiver. |
64.34.405 | Public offering statement -- Requirements -- Liability. |
64.34.410 | Public offering statement -- General provisions. |
64.34.415 | Public offering statement -- Conversion condominiums. |
64.34.417 | Public offering statement -- Use of single disclosure document. |
64.34.418 | Public offering statement -- Contract of sale -- Restriction on interest conveyed. |
64.34.420 | Purchaser's right to cancel. |
64.34.425 | Resale of unit. |
64.34.430 | Escrow of deposits. |
64.34.435 | Release of liens -- Conveyance. |
64.34.440 | Conversion condominiums -- Notice -- Tenants. |
64.34.443 | Express warranties of quality. |
64.34.445 | Implied warranties of quality -- Breach. |
64.34.450 | Implied warranties of quality -- Exclusion -- Modification -- Disclaimer -- Express written warranty. |
64.34.452 | Warranties of quality -- Breach -- Actions for construction defect claims. |
64.34.455 | Effect of violations on rights of action -- Attorney's fees. |
64.34.460 | Labeling of promotional material. |
64.34.465 | Improvements -- Declarant's duties. |
64.34.900 | Short title. |
64.34.910 | Section captions. |
64.34.920 | Severability -- 1989 c 43. |
64.34.921 | Severability -- 2004 c 201. |
64.34.930 | Effective date -- 1989 c 43. |
64.34.931 | Effective date -- 2004 c 201 §§ 1-13. |
64.34.940 | Construction against implicit repeal. |
64.34.950 | Uniformity of application and construction. |
NOTES:
Condominiums created prior to July 1, 1990: Chapter 64.32
RCW.
(1) The legislature finds, declares, and determines
that:
(a) Washington's cities and counties under
the growth management act are required to encourage urban growth in urban growth
areas at densities that accommodate twenty-year growth
projections;
(b) The growth management act's
planning goals include encouraging the availability of affordable housing for
all residents of the state and promoting a variety of housing
types;
(c) Quality condominium construction
needs to be encouraged to achieve growth management act mandated urban densities
and to ensure that residents of the state, particularly in urban growth areas,
have a broad range of ownership choices.
(2) It
is the intent of the legislature that limited changes be made to the condominium
act to ensure that a broad range of affordable homeownership opportunities
continue to be available to the residents of the state, and to assist cities'
and counties' efforts to achieve the density mandates of the growth management
act.
[2004 c 201 § 1.]
(1) This chapter applies to all condominiums created within this state
after July 1, 1990. RCW 64.34.040
(separate titles and taxation), RCW 64.34.050
(applicability of local ordinances, regulations, and building codes), RCW 64.34.060
(condemnation), RCW 64.34.208
(construction and validity of declaration and bylaws), RCW 64.34.212
(description of units), RCW 64.34.304(1)(a)
through (f) and (k) through (r) (powers of unit owners' association), RCW 64.34.308(1)
(board of directors and officers), RCW 64.34.340
(voting—proxies), RCW 64.34.344
(tort and contract liability), RCW 64.34.354
(notification on sale of unit), RCW 64.34.360(3)
(common expenses—assessments), RCW 64.34.364
(lien for assessments), RCW 64.34.372
(association records), RCW 64.34.425
(resales of units), RCW 64.34.455
(effect of violation on rights of action; attorney's fees), and RCW 64.34.020
(definitions) to the extent necessary in construing any of those sections, apply
to all condominiums created in this state before July 1, 1990; but those
sections apply only with respect to events and circumstances occurring after
July 1, 1990, and do not invalidate or supersede existing, inconsistent
provisions of the declaration, bylaws, or survey maps or plans of those
condominiums.
(2) The provisions of chapter
64.32 RCW do not apply to condominiums created after July 1, 1990, and do not
invalidate any amendment to the declaration, bylaws, and survey maps and plans
of any condominium created before July 1, 1990, if the amendment would be
permitted by this chapter. The amendment must be adopted in conformity with the
procedures and requirements specified by those instruments and by chapter 64.32
RCW. If the amendment grants to any person any rights, powers, or privileges
permitted by this chapter which are not otherwise provided for in the
declaration or chapter 64.32 RCW, all correlative obligations, liabilities, and
restrictions in this chapter also apply to that
person.
(3) This chapter does not apply to
condominiums or units located outside this
state.
(4) RCW 64.34.400
(applicability—waiver), RCW 64.34.405
(liability for public offering statement requirements), RCW 64.34.410
(public offering statement—general provisions), RCW 64.34.415
(public offering statement—conversion condominiums), RCW 64.34.420
(purchaser's right to cancel), RCW 64.34.430
(escrow of deposits), RCW 64.34.440
(conversion condominiums—notice—tenants), and RCW 64.34.455
(effect of violations on rights of action—attorney's fees) apply with respect to
all sales of units pursuant to purchase agreements entered into after July 1,
1990, in condominiums created before July 1, 1990, in which as of July 1, 1990,
the declarant or an affiliate of the declarant owns or had the right to create
at least ten units constituting at least twenty percent of the units in the
condominium.
[1993 c 429 § 12; 1992 c 220 § 1; 1989 c 43 § 1-102.]
In the declaration and bylaws, unless specifically provided otherwise or
the context requires otherwise, and in this
chapter:
(1) "Affiliate" means any person who
controls, is controlled by, or is under common control with the referenced
person. A person "controls" another person if the person: (a) Is a general
partner, officer, director, or employer of the referenced person; (b) directly
or indirectly or acting in concert with one or more other persons, or through
one or more subsidiaries, owns, controls, holds with power to vote, or holds
proxies representing, more than twenty percent of the voting interest in the
referenced person; (c) controls in any manner the election of a majority of the
directors of the referenced person; or (d) has contributed more than twenty
percent of the capital of the referenced person. A person "is controlled by"
another person if the other person: (i) Is a general partner, officer, director,
or employer of the person; (ii) directly or indirectly or acting in concert with
one or more other persons, or through one or more subsidiaries, owns, controls,
holds with power to vote, or holds proxies representing, more than twenty
percent of the voting interest in the person; (iii) controls in any manner the
election of a majority of the directors of the person; or (iv) has contributed
more than twenty percent of the capital of the person. Control does not exist if
the powers described in this subsection are held solely as security for an
obligation and are not exercised.
(2) "Allocated
interests" means the undivided interest in the common elements, the common
expense liability, and votes in the association allocated to each
unit.
(3) "Assessment" means all sums chargeable
by the association against a unit including, without limitation: (a) Regular and
special assessments for common expenses, charges, and fines imposed by the
association; (b) interest and late charges on any delinquent account; and (c)
costs of collection, including reasonable attorneys' fees, incurred by the
association in connection with the collection of a delinquent owner's
account.
(4) "Association" or "unit owners'
association" means the unit owners' association organized under RCW 64.34.300.
(5) "Board of directors" means the body, regardless of name, with primary
authority to manage the affairs of the
association.
(6) "Common elements" means all
portions of a condominium other than the units.
(7) "Common expenses" means expenditures made by or financial liabilities of the
association, together with any allocations to
reserves.
(8) "Common expense liability" means
the liability for common expenses allocated to each unit pursuant to RCW 64.34.224.
(9) "Condominium" means real property, portions of which are designated for
separate ownership and the remainder of which is designated for common ownership
solely by the owners of those portions. Real property is not a condominium
unless the undivided interests in the common elements are vested in the unit
owners, and unless a declaration and a survey map and plans have been recorded
pursuant to this chapter.
(10) "Conversion
condominium" means a condominium (a) that at any time before creation of the
condominium was lawfully occupied wholly or partially by a tenant or subtenant
for residential purposes pursuant to a rental agreement, oral or written,
express or implied, for which the tenant or subtenant had not received the
notice described in (b) of this subsection; or (b) that, at any time within
twelve months before the conveyance of, or acceptance of an agreement to convey,
any unit therein other than to a declarant or any affiliate of a declarant, was
lawfully occupied wholly or partially by a residential tenant of a declarant or
an affiliate of a declarant and such tenant was not notified in writing, prior
to lawfully occupying a unit or executing a rental agreement, whichever event
first occurs, that the unit was part of a condominium and subject to sale.
"Conversion condominium" shall not include a condominium in which, before July
1, 1990, any unit therein had been conveyed or been made subject to an agreement
to convey to any transferee other than a declarant or an affiliate of a
declarant.
(11) "Conveyance" means any transfer
of the ownership of a unit, including a transfer by deed or by real estate
contract and, with respect to a unit in a leasehold condominium, a transfer by
lease or assignment thereof, but shall not include a transfer solely for
security.
(12) "Dealer" means a person who,
together with such person's affiliates, owns or has a right to acquire either
six or more units in a condominium or fifty percent or more of the units in a
condominium containing more than two units.
(13)
"Declarant" means:
(a) Any person who executes
as declarant a declaration as defined in subsection (15) of this section;
or
(b) Any person who reserves any special
declarant right in the declaration; or
(c) Any
person who exercises special declarant rights or to whom special declarant
rights are transferred; or
(d) Any person who is
the owner of a fee interest in the real property which is subjected to the
declaration at the time of the recording of an instrument pursuant to RCW 64.34.316
and who directly or through one or more affiliates is materially involved in the
construction, marketing, or sale of units in the condominium created by the
recording of the instrument.
(14) "Declarant
control" means the right of the declarant or persons designated by the declarant
to appoint and remove officers and members of the board of directors, or to veto
or approve a proposed action of the board or association, pursuant to RCW 64.34.308
(4) or (5).
(15) "Declaration" means the
document, however denominated, that creates a condominium by setting forth the
information required by RCW 64.34.216
and any amendments to that document.
(16)
"Development rights" means any right or combination of rights reserved by a
declarant in the declaration to: (a) Add real property or improvements to a
condominium; (b) create units, common elements, or limited common elements
within real property included or added to a condominium; (c) subdivide units or
convert units into common elements; (d) withdraw real property from a
condominium; or (e) reallocate limited common elements with respect to units
that have not been conveyed by the declarant.
(17) "Dispose" or "disposition" means a voluntary transfer or conveyance to a
purchaser or lessee of any legal or equitable interest in a unit, but does not
include the transfer or release of a security
interest.
(18) "Eligible mortgagee" means the
holder of a mortgage on a unit that has filed with the secretary of the
association a written request that it be given copies of notices of any action
by the association that requires the consent of
mortgagees.
(19) "Foreclosure" means a
forfeiture or judicial or nonjudicial foreclosure of a mortgage or a deed in
lieu thereof.
(20) "Identifying number" means
the designation of each unit in a condominium.
(21) "Leasehold condominium" means a condominium in which all or a portion of
the real property is subject to a lease, the expiration or termination of which
will terminate the condominium or reduce its
size.
(22) "Limited common element" means a
portion of the common elements allocated by the declaration or by operation of
RCW 64.34.204
(2) or (4) for the exclusive use of one or more but fewer than all of the
units.
(23) "Master association" means an
organization described in RCW 64.34.276,
whether or not it is also an association described in RCW 64.34.300.
(24) "Mortgage" means a mortgage, deed of trust or real estate
contract.
(25) "Person" means a natural person,
corporation, partnership, limited partnership, trust, governmental subdivision
or agency, or other legal entity.
(26)
"Purchaser" means any person, other than a declarant or a dealer, who by means
of a disposition acquires a legal or equitable interest in a unit other than (a)
a leasehold interest, including renewal options, of less than twenty years at
the time of creation of the unit, or (b) as security for an
obligation.
(27) "Real property" means any fee,
leasehold or other estate or interest in, over, or under land, including
structures, fixtures, and other improvements thereon and easements, rights and
interests appurtenant thereto which by custom, usage, or law pass with a
conveyance of land although not described in the contract of sale or instrument
of conveyance. "Real property" includes parcels, with or without upper or lower
boundaries, and spaces that may be filled with air or
water.
(28) "Residential purposes" means use for
dwelling or recreational purposes, or both.
(29)
"Special declarant rights" means rights reserved for the benefit of a declarant
to: (a) Complete improvements indicated on survey maps and plans filed with the
declaration under RCW 64.34.232;
(b) exercise any development right under RCW 64.34.236;
(c) maintain sales offices, management offices, signs advertising the
condominium, and models under RCW 64.34.256;
(d) use easements through the common elements for the purpose of making
improvements within the condominium or within real property which may be added
to the condominium under RCW 64.34.260;
(e) make the condominium part of a larger condominium or a development under RCW
64.34.280;
(f) make the condominium subject to a master association under RCW 64.34.276;
or (g) appoint or remove any officer of the association or any master
association or any member of the board of directors, or to veto or approve a
proposed action of the board or association, during any period of declarant
control under RCW 64.34.308(4).
(30) "Timeshare" shall have the meaning specified in the timeshare act, RCW
64.36.010(11).
(31) "Unit" means a physical
portion of the condominium designated for separate ownership, the boundaries of
which are described pursuant to RCW 64.34.216(1)(d).
"Separate ownership" includes leasing a unit in a leasehold condominium under a
lease that expires contemporaneously with any lease, the expiration or
termination of which will remove the unit from the
condominium.
(32) "Unit owner" means a declarant
or other person who owns a unit or leases a unit in a leasehold condominium
under a lease that expires simultaneously with any lease, the expiration or
termination of which will remove the unit from the condominium, but does not
include a person who has an interest in a unit solely as security for an
obligation. "Unit owner" means the vendee, not the vendor, of a unit under a
real estate contract.
[2004 c 201 § 9; 1992 c 220 § 2; 1990 c 166 § 1; 1989 c 43 § 1-103.]
NOTES:
Effective date -- 1990 c 166: "This act shall take effect July 1, 1990." [1990 c 166 § 16.]
RCW 64.34.030
Variation by agreement.
Except as expressly provided in this chapter, provisions of this chapter may not be varied by agreement, and rights conferred by this chapter may not be waived. A declarant may not act under a power of attorney or use any other device to evade the limitations or prohibitions of this chapter or the declaration.
[1989 c 43 § 1-104.]
(1) If there is any unit owner other than a declarant, each unit that has
been created, together with its interest in the common elements, constitutes for
all purposes a separate parcel of real property.
(2) If there is any unit owner other than a declarant, each unit together with
its interest in the common elements must be separately taxed and
assessed.
(3) If a development right has an
ascertainable market value, the development right shall constitute a separate
parcel of real property for property tax purposes and must be separately taxed
and assessed to the declarant.
(4) If there is
no unit owner other than a declarant, the real property comprising the
condominium may be taxed and assessed in any manner provided by law.
[1992 c 220 § 3; 1989 c 43 § 1-105.]
(1) A zoning, subdivision, building code, or other real property law,
ordinance, or regulation may not prohibit the condominium form of ownership or
impose any requirement upon a condominium which it would not impose upon a
physically identical development under a different form of ownership. Otherwise,
no provision of this chapter invalidates or modifies any provision of any
zoning, subdivision, building code, or other real property use law, ordinance,
or regulation.
(2) This section shall not
prohibit a county legislative authority from requiring the review and approval
of declarations and amendments thereto and termination agreements executed
pursuant to RCW 64.34.268(2)
by the county assessor solely for the purpose of allocating the assessed value
and property taxes. The review by the assessor shall be done in a reasonable and
timely manner.
[1989 c 43 § 1-106.]
(1) If a unit is acquired by condemnation, or if part of a unit is
acquired by condemnation leaving the unit owner with a remnant of a unit which
may not practically or lawfully be used for any purpose permitted by the
declaration, the award must compensate the unit owner for the owner's unit and
its appurtenant interest in the common elements, whether or not any common
elements are acquired. Upon acquisition, unless the decree otherwise provides,
that unit's allocated interests are automatically reallocated to the remaining
units in proportion to the respective allocated interests of those units before
the taking, and the association shall promptly prepare, execute, and record an
amendment to the declaration reflecting the reallocations. Any remnant of a unit
remaining after part of a unit is taken under this subsection is thereafter a
common element.
(2) Except as provided in
subsection (1) of this section, if part of a unit is acquired by condemnation,
the award must compensate the unit owner for the reduction in value of the unit
and its appurtenant interest in the common elements, whether or not any common
elements are acquired. Upon acquisition, unless the decree otherwise provides:
(a) That unit's allocated interests are reduced in proportion to the reduction
in the size of the unit, or on any other basis specified in the declaration; and
(b) the portion of the allocated interests divested from the partially acquired
unit are automatically reallocated to that unit and the remaining units in
proportion to the respective allocated interests of those units before the
taking, with the partially acquired unit participating in the reallocation on
the basis of its reduced allocated interests.
(3) If part of the common elements is acquired by condemnation the portion of
the award attributable to the common elements taken shall be paid to the owners
based on their respective interests in the common elements unless the
declaration provides otherwise. Unless the declaration provides otherwise, any
portion of the award attributable to the acquisition of a limited common element
must be equally divided among the owners of the units to which that limited
common element was allocated at the time of
acquisition.
(4) The court judgment shall be
recorded in every county in which any portion of the condominium is
located.
(5) Should the association not act,
based on a right reserved to the association in the declaration, on the owners'
behalf in a condemnation process, the affected owners may individually or
jointly act on their own behalf.
[1989 c 43 § 1-107.]
The principles of law and equity, including the law of corporations and unincorporated associations, the law of real property, and the law relative to capacity to contract, principal and agent, condemnation, estoppel, fraud, misrepresentation, duress, coercion, mistake, receivership, substantial performance, or other validating or invalidating cause supplement the provisions of this chapter, except to the extent inconsistent with this chapter.
[1989 c 43 § 1-108.]
(1) The court, upon finding as a matter of law that a contract or
contract clause was unconscionable at the time the contract was made, may refuse
to enforce the contract, enforce the remainder of the contract without the
unconscionable clause, or limit the application of any unconscionable clause in
order to avoid an unconscionable result.
(2)
Whenever it is claimed, or appears to the court, that a contract or any contract
clause is or may be unconscionable, the parties, in order to aid the court in
making the determination, shall be afforded a reasonable opportunity to present
evidence as to:
(a) The commercial setting of
the negotiations;
(b) Whether a party has
knowingly taken advantage of the inability of the other party reasonably to
protect his or her interests by reason of physical or mental infirmity,
illiteracy, or inability to understand the language of the agreement or similar
factors;
(c) The effect and purpose of the
contract or clause; and
(d) If a sale, any gross
disparity at the time of contracting between the amount charged for the real
property and the value of the real property measured by the price at which
similar real property was readily obtainable in similar transactions, but a
disparity between the contract price and the value of the real property measured
by the price at which similar real property was readily obtainable in similar
transactions does not, of itself, render the contract unconscionable.
[1989 c 43 § 1-111.]
Every contract or duty governed by this chapter imposes an obligation of good faith in its performance or enforcement.
[1989 c 43 § 1-112.]
(1) The remedies provided by this chapter shall be liberally administered
to the end that the aggrieved party is put in as good a position as if the other
party had fully performed. However, consequential, special, or punitive damages
may not be awarded except as specifically provided in this chapter or by other
rule of law.
(2) Except as otherwise provided in
chapter 64.35 RCW, any right or obligation declared by this chapter is
enforceable by judicial proceeding.
[2004 c 201 § 2; 1989 c 43 § 1-113.]
(1) A condominium may be created pursuant to this chapter only by
recording a declaration executed by the owner of the interest subject to this
chapter in the same manner as a deed and by simultaneously recording a survey
map and plans pursuant to RCW 64.34.232.
The declaration and survey map and plans must be recorded in every county in
which any portion of the condominium is located, and the condominium shall not
have the same name as any other existing condominium, whether created under this
chapter or under chapter 64.32 RCW, in any county in which the condominium is
located.
(2) A declaration or an amendment to a
declaration adding units to a condominium may not be recorded unless (a) all
structural components and mechanical systems of all buildings containing or
comprising any units thereby created are substantially completed as evidenced by
a recorded certificate of completion executed by the declarant which certificate
may be included in the declaration or the amendment, the survey map and plans to
be recorded pursuant to RCW 64.34.232,
or a separately recorded written instrument, and (b) all horizontal and vertical
boundaries of such units are substantially completed in accordance with the
plans required to be recorded by RCW 64.34.232,
as evidenced by a recorded certificate of completion executed by a licensed
surveyor.
[1992 c 220 § 4; 1990 c 166 § 2; 1989 c 43 § 2-101.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.202
Reservation of condominium
name.
Upon the filing of a written request with the county office in which the declaration is to be recorded, using such form of written request as may be required by the county office and paying such fee as the county office may establish not in excess of fifty dollars, a person may reserve the exclusive right to use a particular name for a condominium to be created in that county. The name being reserved shall not be identical to any other condominium or subdivision plat located in that county, and such name reservation shall automatically lapse unless within three hundred sixty-five days from the date on which the name reservation is filed the person reserving that name either records a declaration using the reserved name or files a new name reservation request.
[1992 c 220 § 5.]
Except as provided by the declaration:
(1) The walls, floors, or ceilings are the boundaries of a unit, and all lath,
furring, wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint,
finished flooring, and any other materials constituting any part of the finished
surfaces thereof are a part of the unit, and all other portions of the walls,
floors, or ceilings are a part of the common
elements.
(2) If any chute, flue, duct, wire,
conduit, bearing wall, bearing column, or any other fixture lies partially
within and partially outside the designated boundaries of a unit, any portion
thereof serving only that unit is a limited common element allocated solely to
that unit, and any portion thereof serving more than one unit or any portion of
the common elements is a part of the common
elements.
(3) Subject to the provisions of
subsection (2) of this section, all spaces, interior partitions, and other
fixtures and improvements within the boundaries of a unit are a part of the
unit.
(4) Any shutters, awnings, window boxes,
doorsteps, stoops, porches, balconies, patios, and all exterior doors and
windows or other fixtures designed to serve a single unit, but which are located
outside the unit's boundaries, are limited common elements allocated exclusively
to that unit.
[1992 c 220 § 6; 1989 c 43 § 2-102.]
(1) All provisions of the declaration and bylaws are
severable.
(2) The rule against perpetuities may
not be applied to defeat any provision of the declaration, bylaws, rules, or
regulations adopted pursuant to RCW 64.34.304(1)(a).
(3) In the event of a conflict between the provisions of the declaration and the
bylaws, the declaration prevails except to the extent the declaration is
inconsistent with this chapter.
(4) The creation
of a condominium shall not be impaired and title to a unit and common elements
shall not be rendered unmarketable or otherwise affected by reason of an
insignificant failure of the declaration or survey map and plans or any
amendment thereto to comply with this chapter. Whether a significant failure
impairs marketability shall not be determined by this chapter.
[1989 c 43 § 2-103.]
A description of a unit which sets forth the name of the condominium, the recording number for the declaration, the county in which the condominium is located, and the identifying number of the unit is a sufficient legal description of that unit and all rights, obligations, and interests appurtenant to that unit which were created by the declaration or bylaws.
[1989 c 43 § 2-104.]
(1) The declaration for a condominium must
contain:
(a) The name of the condominium, which
must include the word "condominium" or be followed by the words "a condominium,"
and the name of the association;
(b) A legal
description of the real property included in the
condominium;
(c) A statement of the number of
units which the declarant has created and, if the declarant has reserved the
right to create additional units, the number of such additional
units;
(d) The identifying number of each unit
created by the declaration and a description of the boundaries of each unit if
and to the extent they are different from the boundaries stated in RCW 64.34.204(1);
(e) With respect to each existing unit:
(i) The
approximate square footage;
(ii) The number of
bathrooms, whole or partial;
(iii) The number of
rooms designated primarily as bedrooms;
(iv) The
number of built-in fireplaces; and
(v) The level
or levels on which each unit is located.
The
data described in (ii), (iii), and (iv) of this subsection (1)(e) may be omitted
with respect to units restricted to nonresidential
use;
(f) The number of parking spaces and
whether covered, uncovered, or enclosed;
(g) The
number of moorage slips, if any;
(h) A
description of any limited common elements, other than those specified in RCW 64.34.204
(2) and (4), as provided in RCW 64.34.232(2)(j);
(i) A description of any real property which may be allocated subsequently by
the declarant as limited common elements, other than limited common elements
specified in RCW 64.34.204
(2) and (4), together with a statement that they may be so
allocated;
(j) A description of any development
rights and other special declarant rights under RCW 64.34.020(29)
reserved by the declarant, together with a description of the real property to
which the development rights apply, and a time limit within which each of those
rights must be exercised;
(k) If any development
right may be exercised with respect to different parcels of real property at
different times, a statement to that effect together with: (i) Either a
statement fixing the boundaries of those portions and regulating the order in
which those portions may be subjected to the exercise of each development right,
or a statement that no assurances are made in those regards; and (ii) a
statement as to whether, if any development right is exercised in any portion of
the real property subject to that development right, that development right must
be exercised in all or in any other portion of the remainder of that real
property;
(l) Any other conditions or
limitations under which the rights described in (j) of this subsection may be
exercised or will lapse;
(m) An allocation to
each unit of the allocated interests in the manner described in RCW 64.34.224;
(n) Any restrictions in the declaration on use, occupancy, or alienation of the
units;
(o) A cross-reference by recording number
to the survey map and plans for the units created by the declaration;
and
(p) All matters required or permitted by RCW
64.34.220
through 64.34.232,
64.34.256,
64.34.260,
64.34.276,
and 64.34.308(4).
(2) All amendments to the declaration shall contain a cross-reference by
recording number to the declaration and to any prior amendments thereto. All
amendments to the declaration adding units shall contain a cross-reference by
recording number to the survey map and plans relating to the added units and set
forth all information required by RCW 64.34.216(1)
with respect to the added units.
(3) The
declaration may contain any other matters the declarant deems appropriate.
[1992 c 220 § 7; 1989 c 43 § 2-105.]
(1) Any lease, the expiration or termination of which may terminate the
condominium or reduce its size, or a memorandum thereof, shall be recorded.
Every lessor of those leases must sign the declaration, and the declaration
shall state:
(a) The recording number of the
lease or a statement of where the complete lease may be
inspected;
(b) The date on which the lease is
scheduled to expire;
(c) A legal description of
the real property subject to the lease;
(d) Any
right of the unit owners to redeem the reversion and the manner whereby those
rights may be exercised, or a statement that they do not have those
rights;
(e) Any right of the unit owners to
remove any improvements within a reasonable time after the expiration or
termination of the lease, or a statement that they do not have those rights;
and
(f) Any rights of the unit owners to renew
the lease and the conditions of any renewal, or a statement that they do not
have those rights.
(2) The declaration may
provide for the collection by the association of the proportionate rents paid on
the lease by the unit owners and may designate the association as the
representative of the unit owners on all matters relating to the
lease.
(3) If the declaration does not provide
for the collection of rents by the association, the lessor may not terminate the
interest of a unit owner who makes timely payment of the owner's share of the
rent and otherwise complies with all covenants other than the payment of rent
which, if violated, would entitle the lessor to terminate the
lease.
(4) Acquisition of the leasehold interest
of any unit owner by the owner of the reversion or remainder does not merge the
leasehold and fee simple interests unless the leasehold interests of all unit
owners subject to that reversion or remainder are acquired and the owner thereof
records a document confirming the merger.
(5) If
the expiration or termination of a lease decreases the number of units in a
condominium, the allocated interests shall be reallocated in accordance with RCW
64.34.060(1)
as though those units had been taken by condemnation. Reallocations shall be
confirmed by an amendment to the declaration and survey map and plans prepared,
executed, and recorded by the association.
[1989 c 43 § 2-106.]
(1) The declaration shall allocate a fraction or percentage of undivided
interests in the common elements and in the common expenses of the association,
and a portion of the votes in the association, to each unit and state the
formulas or methods used to establish those allocations. Those allocations may
not discriminate in favor of units owned by the declarant or an affiliate of the
declarant.
(2) If units may be added to or
withdrawn from the condominium, the declaration shall state the formulas or
methods to be used to reallocate the allocated interests among all units
included in the condominium after the addition or
withdrawal.
(3) The declaration may provide: (a)
For cumulative voting only for the purpose of electing members of the board of
directors; and (b) for class voting on specified issues affecting the class if
necessary to protect valid interests of the class. A declarant may not utilize
cumulative or class voting for the purpose of evading any limitation imposed on
declarants by this chapter, nor may units constitute a class because they are
owned by a declarant.
(4) Except for minor
variations due to rounding, the sum of the undivided interests in the common
elements and common expense liabilities allocated at any time to all the units
must each equal one if stated as fractions or one hundred percent if stated as
percentages. In the event of discrepancy between an allocated interest and the
result derived from application of the pertinent formula, the allocated interest
prevails.
(5) Except where permitted by other
sections of this chapter, the common elements are not subject to partition, and
any purported conveyance, encumbrance, judicial sale, or other voluntary or
involuntary transfer of an undivided interest in the common elements made
without the unit to which that interest is allocated is void.
[1992 c 220 § 8; 1989 c 43 § 2-107.]
(1) Except for the limited common elements described in RCW 64.34.204
(2) and (4), the declaration shall specify to which unit or units each limited
common element is allocated.
(2) Except in the
case of a reallocation being made by a declarant pursuant to a development right
reserved in the declaration, a limited common element may only be reallocated
between units with the approval of the board of directors and by an amendment to
the declaration executed by the owners of the units to which the limited common
element was and will be allocated. The board of directors shall approve the
request of the owner or owners under this subsection within thirty days, or
within such other period provided by the declaration, unless the proposed
reallocation does not comply with this chapter or the declaration. The failure
of the board of directors to act upon a request within such period shall be
deemed approval thereof. The amendment shall be recorded in the names of the
parties and of the condominium.
(3) Unless
otherwise provided in the declaration, the owners of units to which at least
sixty-seven percent of the votes are allocated, including the owner of the unit
to which the limited common element will be assigned or incorporated, must agree
to reallocate a common element as a limited common element or to incorporate a
common element or a limited common element into an existing unit. Such
reallocation or incorporation shall be reflected in an amendment to the
declaration, survey map, or plans.
[1992 c 220 § 9; 1989 c 43 § 2-108.]
(1) A survey map and plans executed by the declarant shall be recorded
simultaneously with, and contain cross-references by recording number to, the
declaration and any amendments. The survey map and plans must be clear and
legible and contain a certification by the person making the survey or the plans
that all information required by this section is supplied. All plans filed shall
be in such style, size, form and quality as shall be prescribed by the recording
authority of the county where filed, and a copy shall be delivered to the county
assessor.
(2) Each survey map shall show or
state:
(a) The name of the condominium and a
legal description and a survey of the land in the condominium and of any land
that may be added to the condominium;
(b) The
boundaries of all land not subject to development rights, or subject only to the
development right to withdraw, and the location and dimensions of all existing
buildings containing units on that land;
(c) The
boundaries of any land subject to development rights, labeled "SUBJECT TO
DEVELOPMENT RIGHTS SET FORTH IN THE DECLARATION"; any land that may be added to
the condominium shall also be labeled "MAY BE ADDED TO THE CONDOMINIUM"; any
land that may be withdrawn from the condominium shall also be labeled "MAY BE
WITHDRAWN FROM THE CONDOMINIUM";
(d) The extent
of any encroachments by or upon any portion of the
condominium;
(e) To the extent feasible, the
location and dimensions of all recorded easements serving or burdening any
portion of the condominium and any unrecorded easements of which a surveyor
knows or reasonably should have known, based on standard industry practices,
while conducting the survey;
(f) Subject to the
provisions of subsection (8) of this section, the location and dimensions of any
vertical unit boundaries not shown or projected on plans recorded under
subsection (4) of this section and that unit's identifying
number;
(g) The location with reference to an
established datum of any horizontal unit boundaries not shown or projected on
plans recorded under subsection (4) of this section and that unit's identifying
number;
(h) The location and dimensions of any
real property in which the unit owners will own only an estate for years,
labeled as "leasehold real property";
(i) The
distance between any noncontiguous parcels of real property comprising the
condominium;
(j) The general location of any
existing principal common amenities listed in a public offering statement under
RCW 64.34.410(1)(j)
and any limited common elements, including limited common element porches,
balconies, patios, parking spaces, and storage facilities, but not including the
other limited common elements described in RCW 64.34.204
(2) and (4);
(k) In the case of real property
not subject to development rights, all other matters customarily shown on land
surveys.
(3) A survey map may also show the
intended location and dimensions of any contemplated improvement to be
constructed anywhere within the condominium. Any contemplated improvement shown
must be labeled either "MUST BE BUILT" or "NEED NOT BE
BUILT."
(4) To the extent not shown or projected
on the survey map, plans of the existing units must show or
project:
(a) Subject to the provisions of
subsection (8) of this section, the location and dimensions of the vertical
boundaries of each unit, and that unit's identifying
number;
(b) Any horizontal unit boundaries, with
reference to an established datum, and that unit's identifying number;
and
(c) Any units in which the declarant has
reserved the right to create additional units or common elements under RCW 64.34.236(3),
identified appropriately.
(5) Unless the
declaration provides otherwise, the horizontal boundaries of part of a unit
located outside of a building have the same elevation as the horizontal
boundaries of the inside part and in such case need not be depicted on the
survey map and plans.
(6) Upon exercising any
development right, the declarant shall record either a new survey map and plans
necessary to conform to the requirements of subsections (1), (2), and (3) of
this section or new certifications of a survey map and plans previously recorded
if the documents otherwise conform to the requirements of those
subsections.
(7) Any survey map, plan, or
certification required by this section shall be made by a licensed
surveyor.
(8) In showing or projecting the
location and dimensions of the vertical boundaries of a unit under subsections
(2)(f) and (4)(a) of this section, it is not necessary to show the thickness of
the walls constituting the vertical boundaries or otherwise show the distance of
those vertical boundaries either from the exterior surface of the building
containing that unit or from adjacent vertical boundaries of other units if: (a)
The walls are designated to be the vertical boundaries of that unit; (b) the
unit is located within a building, the location and dimensions of the building
having been shown on the survey map under subsection (2)(b) of this section; and
(c) the graphic general location of the vertical boundaries are shown in
relation to the exterior surfaces of that building and to the vertical
boundaries of other units within that building.
[1997 c 400 § 2; 1992 c 220 § 10; 1989 c 43 § 2-109.]
(1) To exercise any development right reserved under RCW 64.34.216(1)(j),
the declarant shall prepare, execute, and record an amendment to the declaration
under RCW 64.34.264,
and comply with RCW 64.34.232.
The declarant is the unit owner of any units thereby created. The amendment to
the declaration shall assign an identifying number to each new unit created,
and, except in the case of subdivision or conversion of units described in
subsection (2) of this section, reallocate the allocated interests among all
units. The amendment must describe any common elements and any limited common
elements thereby created and, in the case of limited common elements, designate
the unit to which each is allocated to the extent required by RCW 64.34.228.
(2) Development rights may be reserved within any real property added to the
condominium if the amendment adding that real property includes all matters
required by RCW 64.34.216
or 64.34.220,
as the case may be, and the survey map and plans include all matters required by
RCW 64.34.232.
This provision does not extend the time limit on the exercise of development
rights imposed by the declaration pursuant to RCW 64.34.216(1)(j).
(3) Whenever a declarant exercises a development right to subdivide or convert a
unit previously created into additional units, common elements, or
both:
(a) If the declarant converts the unit
entirely to common elements, the amendment to the declaration must reallocate
all the allocated interests of that unit among the other units as if that unit
had been taken by condemnation under RCW 64.34.060.
(b) If the declarant subdivides the unit into two or more units, whether or not
any part of the unit is converted into common elements, the amendment to the
declaration must reallocate all the allocated interests of the unit among the
units created by the subdivision in any reasonable and equitable manner
prescribed by the declarant.
(4) If the
declaration provides, pursuant to RCW 64.34.216(1)(j),
that all or a portion of the real property is subject to the development right
of withdrawal:
(a) If all the real property is
subject to withdrawal, and the declaration or survey map or amendment thereto
does not describe separate portions of real property subject to that right, none
of the real property may be withdrawn if a unit in that portion of the real
property is owned by a person other than the declarant;
and
(b) If a portion or portions are subject to
withdrawal as described in the declaration or in the survey map or in any
amendment thereto, no portion may be withdrawn if a unit in that portion of the
real property is owned by a person other than the declarant.
[1989 c 43 § 2-110.]
Subject to the provisions of the declaration and other provisions of law,
a unit owner:
(1) May make any improvements or
alterations to the owner's unit that do not affect the structural integrity or
mechanical or electrical systems or lessen the support of any portion of the
condominium;
(2) May not change the appearance
of the common elements or the exterior appearance of a unit without permission
of the association;
(3) After acquiring an
adjoining unit or an adjoining part of an adjoining unit may, with approval of
the board of directors, remove or alter any intervening partition or create
apertures therein, even if the partition in whole or in part is a common
element, if those acts do not adversely affect the structural integrity or
mechanical or electrical systems or lessen the support of any portion of the
condominium. Removal of partitions or creation of apertures under this
subsection is not a relocation of boundaries. The board of directors shall
approve a unit owner's request, which request shall include the plans and
specifications for the proposed removal or alteration, under this subsection
within thirty days, or within such other period provided by the declaration,
unless the proposed alteration does not comply with this chapter or the
declaration or impairs the structural integrity or mechanical or electrical
systems in the condominium. The failure of the board of directors to act upon a
request within such period shall be deemed approval thereof.
[1989 c 43 § 2-111.]
(1) Subject to the provisions of the declaration and other provisions of
law, the boundaries between adjoining units may only be relocated by an
amendment to the declaration upon application to the association by the owners
of those units. If the owners of the adjoining units have specified a
reallocation between their units of their allocated interests, the application
must state the proposed reallocations. Unless the board of directors determines
within thirty days, or such other period provided in the declaration, that the
reallocations are unreasonable, the association shall prepare an amendment that
identifies the units involved, states the reallocations, is executed by those
unit owners, contains words of conveyance between them, and is recorded in the
name of the grantor and the grantee.
(2) The
association shall obtain and record survey maps or plans complying with the
requirements of RCW 64.34.232(4)
necessary to show the altered boundaries between adjoining units and their
dimensions and identifying numbers.
[1989 c 43 § 2-112.]
(1) If the declaration permits, a unit may be subdivided into two or more
units. Subject to the provisions of the declaration and other provisions of law,
upon application of a unit owner to subdivide a unit, the association shall
prepare, execute, and record an amendment to the declaration, including survey
maps and plans, subdividing that unit.
(2) The
amendment to the declaration must be executed by the owner of the unit to be
subdivided, assign an identifying number to each unit created, and reallocate
the allocated interests formerly allocated to the subdivided unit to the new
units in any reasonable and equitable manner prescribed by the owner of the
subdivided unit.
[1989 c 43 § 2-113.]
The physical boundaries of a unit constructed in substantial accordance with the original survey map and set of plans thereof become its boundaries rather than the metes and bounds expressed in the survey map or plans, regardless of settling or lateral movement of the building or minor variance between boundaries shown on the survey map or plans and those of the building. This section does not relieve a declarant or any other person of liability for failure to adhere to the survey map and plans.
[1989 c 43 § 2-114.]
A declarant may maintain sales offices, management offices, and models in units or on common elements in the condominium only if the declaration so provides and specifies the rights of a declarant with regard to the number, location, and relocation thereof. Any sales office, management office, or model not designated a unit by the declaration is a common element and, if a declarant ceases to be a unit owner, the declarant ceases to have any rights with regard thereto unless it is removed promptly from the condominium in accordance with a right to remove reserved in the declaration. Subject to any limitations in the declaration, a declarant may maintain signs on the common elements advertising the condominium. The provisions of this section are subject to the provisions of other state law and to local ordinances.
[1992 c 220 § 11; 1989 c 43 § 2-115.]
Subject to the provisions of the declaration, a declarant has an easement through the common elements as may be reasonably necessary for the purpose of discharging a declarant's obligations or exercising special declarant rights, whether arising under this chapter or reserved in the declaration.
[1989 c 43 § 2-116.]
(1) Except in cases of amendments that may be executed by a declarant
under RCW 64.34.232(6)
or 64.34.236;
the association under RCW 64.34.060,
64.34.220(5),
64.34.228(3),
64.34.244(1),
64.34.248,
or 64.34.268(8);
or certain unit owners under RCW 64.34.228(2),
64.34.244(1),
64.34.248(2),
or 64.34.268(2),
and except as limited by subsection (4) of this section, the declaration,
including the survey maps and plans, may be amended only by vote or agreement of
unit owners of units to which at least sixty-seven percent of the votes in the
association are allocated, or any larger percentage the declaration specifies:
PROVIDED, That the declaration may specify a smaller percentage only if all of
the units are restricted exclusively to nonresidential
use.
(2) No action to challenge the validity of
an amendment adopted by the association pursuant to this section may be brought
more than one year after the amendment is
recorded.
(3) Every amendment to the declaration
must be recorded in every county in which any portion of the condominium is
located, and is effective only upon recording. An amendment shall be indexed in
the name of the condominium and shall contain a cross-reference by recording
number to the declaration and each previously recorded amendment
thereto.
(4) Except to the extent expressly
permitted or required by other provisions of this chapter, no amendment may
create or increase special declarant rights, increase the number of units,
change the boundaries of any unit, the allocated interests of a unit, or the
uses to which any unit is restricted, in the absence of the vote or agreement of
the owner of each unit particularly affected and the owners of units to which at
least ninety percent of the votes in the association are allocated other than
the declarant or such larger percentage as the declaration
provides.
(5) Amendments to the declaration
required by this chapter to be recorded by the association shall be prepared,
executed, recorded, and certified on behalf of the association by any officer of
the association designated for that purpose or, in the absence of designation,
by the president of the association.
(6) No
amendment may restrict, eliminate, or otherwise modify any special declarant
right provided in the declaration without the consent of the declarant and any
mortgagee of record with a security interest in the special declarant right or
in any real property subject thereto, excluding mortgagees of units owned by
persons other than the declarant.
[1989 c 43 § 2-117.]
(1) Except in the case of a taking of all the units by condemnation under
RCW 64.34.060,
a condominium may be terminated only by agreement of unit owners of units to
which at least eighty percent of the votes in the association are allocated, or
any larger percentage the declaration specifies: PROVIDED, That the declaration
may specify a smaller percentage only if all of the units in the condominium are
restricted exclusively to nonresidential uses.
(2) An agreement to terminate must be evidenced by the execution of a
termination agreement or ratifications thereof, in the same manner as a deed, by
the requisite number of unit owners. The termination agreement must specify a
date after which the agreement will be void unless it is recorded before that
date and shall contain a description of the manner in which the creditors of the
association will be paid or provided for. A termination agreement and all
ratifications thereof must be recorded in every county in which a portion of the
condominium is situated and is effective only upon recording. A termination
agreement may be amended by complying with all of the requirements of this
section.
(3) A termination agreement may provide
that all the common elements and units of the condominium shall be sold
following termination. If, pursuant to the agreement, any real property in the
condominium is to be sold following termination, the termination agreement must
set forth the minimum terms of the sale.
(4) The
association, on behalf of the unit owners, may contract for the sale of real
property in the condominium, but the contract is not binding on the unit owners
until approved pursuant to subsections (1) and (2) of this section. If any real
property in the condominium is to be sold following termination, title to that
real property, upon termination, vests in the association as trustee for the
holders of all interests in the units. Thereafter, the association has all
powers necessary and appropriate to effect the sale. Until the sale has been
concluded and the proceeds thereof distributed, the association continues in
existence with all powers it had before termination. Proceeds of the sale must
be distributed to unit owners and lien holders as their interests may appear, in
proportion to the respective interests of unit owners as provided in subsection
(7) of this section. Unless otherwise specified in the termination agreement, as
long as the association holds title to the real property, each unit owner and
the owner's successors in interest have an exclusive right to occupancy of the
portion of the real property that formerly constituted the owner's unit. During
the period of that occupancy, each unit owner and the owner's successors in
interest remain liable for all assessments and other obligations imposed on unit
owners by this chapter or the declaration.
(5)
If the real property constituting the condominium is not to be sold following
termination, title to all the real property in the condominium vests in the unit
owners upon termination as tenants in common in proportion to their respective
interests as provided in subsection (7) of this section, and liens on the units
shift accordingly. While the tenancy in common exists, each unit owner and the
owner's successors in interest have an exclusive right to occupancy of the
portion of the real property that formerly constituted the owner's
unit.
(6) Following termination of the
condominium, the proceeds of any sale of real property, together with the assets
of the association, are held by the association as trustee for unit owners and
holders of liens on the units and creditors of the association as their
interests may appear. No such proceeds or assets may be disbursed to the owners
until all of the creditors of the association have been paid or provided for.
Following termination, creditors of the association holding liens on the units,
which were recorded or perfected under RCW 4.64.020 before termination, may
enforce those liens in the same manner as any lien
holder.
(7) The respective interests of unit
owners referred to in subsections (4), (5), and (6) of this section are as
follows:
(a) Except as provided in (b) of this
subsection, the respective interests of unit owners are the fair market values
of their units, limited common elements, and common element interests
immediately before the termination, as determined by one or more independent
appraisers selected by the association. The decision of the independent
appraisers shall be distributed to the unit owners and becomes final unless
disapproved, within thirty days after distribution, by unit owners of units to
which twenty-five percent of the votes in the association are allocated. The
proportion of any unit owner's interest to that of all unit owners is determined
by dividing the fair market value of that unit owner's unit and common element
interest by the total fair market values of all the units and common
elements.
(b) If any unit or any limited common
element is destroyed to the extent that an appraisal of the fair market value
thereof before destruction cannot be made, the interests of all unit owners are
their respective common element interests immediately before the
termination.
(8) Except as provided in
subsection (9) of this section, foreclosure or enforcement of a lien or
encumbrance against the entire condominium does not of itself terminate the
condominium, and foreclosure or enforcement of a lien or encumbrance against a
portion of the condominium, other than withdrawable real property, does not
withdraw that portion from the condominium. Foreclosure or enforcement of a lien
or encumbrance against withdrawable real property does not of itself withdraw
that real property from the condominium, but the person taking title thereto has
the right to require from the association, upon request, an amendment excluding
the real property from the condominium.
(9) If a
lien or encumbrance against a portion of the real property that is withdrawable
from the condominium has priority over the declaration, and the lien or
encumbrance has not been partially released as to a unit, the purchaser at the
foreclosure or such purchaser's successors may, upon foreclosure, record an
instrument exercising the right to withdraw the real property subject to that
lien or encumbrance from the condominium. The board of directors shall
reallocate interests as if the foreclosed portion were
condemned.
(10) The right of partition under
chapter 7.52 RCW shall be suspended if an agreement to sell the property is
provided for in the termination agreement pursuant to subsection (3) of this
section. The suspension of the right to partition shall continue unless and
until no binding obligation to sell exists three months after the recording of
the termination agreement, the binding sale agreement is terminated, or one year
after the termination agreement is recorded, whichever first occurs.
[1992 c 220 § 12; 1989 c 43 § 2-118.]
The declaration may require that all or a specified number or percentage of the holders of mortgages encumbering the units approve specified actions of the unit owners or the association as a condition to the effectiveness of those actions, but no requirement for approval may operate to (1) deny or delegate control over the general administrative affairs of the association by the unit owners or the board of directors, or (2) prevent the association or the board of directors from commencing, intervening in, or settling any litigation or proceeding, or receiving and distributing any insurance proceeds except pursuant to RCW 64.34.352. With respect to any action requiring the consent of a specified number or percentage of mortgagees, the consent of only eligible mortgagees holding a first lien mortgage need be obtained and the percentage shall be based upon the votes attributable to units with respect to which eligible mortgagees have an interest.
[1989 c 43 § 2-119.]
(1) If the declaration provides that any of the powers described in RCW
64.34.304
are to be exercised by or may be delegated to a profit or nonprofit corporation
which exercises those or other powers on behalf of a development consisting of
one or more condominiums or for the benefit of the unit owners of one or more
condominiums, all provisions of this chapter applicable to unit owners'
associations apply to any such corporation, except as modified by this
section.
(2) Unless a master association is
acting in the capacity of an association described in RCW 64.34.300,
it may exercise the powers set forth in RCW 64.34.304(1)(b)
only to the extent expressly permitted in the declarations of condominiums which
are part of the master association or expressly described in the delegations of
power from those condominiums to the master
association.
(3) If the declaration of any
condominium provides that the board of directors may delegate certain powers to
a master association, the members of the board of directors have no liability
for the acts or omissions of the master association with respect to those powers
following delegation.
(4) The rights and
responsibilities of unit owners with respect to the unit owners' association set
forth in RCW 64.34.308,
64.34.332,
64.34.336,
64.34.340,
and 64.34.348
apply in the conduct of the affairs of a master association only to those
persons who elect the board of a master association, whether or not those
persons are otherwise unit owners within the meaning of this
chapter.
(5) Notwithstanding the provisions of
RCW 64.34.308(6)
with respect to the election of the board of directors of an association by all
unit owners after the period of declarant control ends and even if a master
association is also an association described in RCW 64.34.300,
the certificate of incorporation or other instrument creating the master
association and the declaration of each condominium, the powers of which are
assigned by the declaration or delegated to the master association, must provide
that the board of directors of the master association shall be elected after the
period of declarant control in any of the following
ways:
(a) All unit owners of all condominiums
subject to the master association may elect all members of that board of
directors.
(b) All members of the boards of
directors of all condominiums subject to the master association may elect all
members of that board of directors.
(c) All unit
owners of each condominium subject to the master association may elect specified
members of that board of directors.
(d) All
members of the board of directors of each condominium subject to the master
association may elect specified members of that board of directors.
[1989 c 43 § 2-120.]
(1) If the declaration provides that any of the powers described in RCW
64.34.304
are to be exercised by or may be delegated to a profit or nonprofit corporation
that exercises those or other powers on behalf of unit owners owning less than
all of the units in a condominium, and where those unit owners share the
exclusive use of one or more limited common elements within the condominium or
share some property or other interest in the condominium in common that is not
shared by the remainder of the unit owners in the condominium, all provisions of
this chapter applicable to unit owners' associations apply to any such
corporation, except as modified by this section. The delegation of powers to a
subassociation shall not be used to discriminate in favor of units owned by the
declarant or an affiliate of the declarant.
(2)
A subassociation may exercise the powers set forth in RCW 64.34.304(1)
only to the extent expressly permitted by the declaration of the condominium of
which the units in the subassociation are a part of or expressly described in
the delegations of power from that condominium to the
subassociation.
(3) If the declaration of any
condominium contains a delegation of certain powers to a subassociation, or
provides that the board of directors of the condominium may make such a
delegation, the members of the board of directors have no liability for the acts
or omissions of the subassociation with respect to those powers so exercised by
the subassociation following delegation.
(4) The
rights and responsibilities of unit owners with respect to the unit owners'
association set forth in RCW 64.34.300
through 64.34.376
apply to the conduct of the affairs of a
subassociation.
(5) Notwithstanding the
provisions of RCW 64.34.308(6)
with respect to the election of the board of directors of an association by all
unit owners after the period of declarant control ends, the board of directors
of the subassociation shall be elected after the period of declarant control by
the unit owners of all of the units in the condominium subject to the
subassociation.
(6) The declaration of the
condominium creating the subassociation may provide that the authority of the
board of directors of the subassociation is exclusive with regard to the powers
and responsibilities delegated to it. In the alternative, the declaration may
provide as to some or all such powers that the authority of the board of
directors of a subassociation is concurrent with and subject to the authority of
the board of directors of the unit owners' association, in which case the
declaration shall also contain standards and procedures for the review of the
decisions of the board of directors of the subassociation and procedures for
resolving any dispute between the board of the unit owners' association and the
board of the subassociation.
[1992 c 220 § 13.]
(1) Any two or more condominiums, by agreement of the unit owners as
provided in subsection (2) of this section, may be merged or consolidated into a
single condominium. In the event of a merger or consolidation, unless the
agreement otherwise provides, the resultant condominium is, for all purposes,
the legal successor of all of the preexisting condominiums and the operations
and activities of all associations of the preexisting condominiums shall be
merged or consolidated into a single association which shall hold all powers,
rights, obligations, assets, and liabilities of all preexisting
associations.
(2) An agreement of two or more
condominiums to merge or consolidate pursuant to subsection (1) of this section
must be evidenced by an agreement prepared, executed, recorded, and certified by
the president of the association of each of the preexisting condominiums
following approval by owners of units to which are allocated the percentage of
votes in each condominium required to terminate that condominium. Any such
agreement must be recorded in every county in which a portion of the condominium
is located and is not effective until recorded.
(3) Every merger or consolidation agreement must provide for the reallocation of
the allocated interests in the new association among the units of the resultant
condominium either (a) by stating the reallocations or the formulas upon which
they are based or (b) by stating the portion of overall allocated interests of
the new condominium which are allocated to all of the units comprising each of
the preexisting condominiums, and providing that the percentages allocated to
each unit formerly comprising a part of the preexisting condominium in such
portion must be equal to the percentages of allocated interests allocated to
that unit by the declaration of the preexisting
condominium.
(4) All merged or consolidated
condominiums under this section shall comply with this chapter.
[1989 c 43 § 2-121.]
A unit owners' association shall be organized no later than the date the first unit in the condominium is conveyed. The membership of the association at all times shall consist exclusively of all the unit owners. Following termination of the condominium, the membership of the association shall consist of all of the unit owners at the time of termination entitled to distributions of proceeds under RCW 64.34.268 or their heirs, successors, or assigns. The association shall be organized as a profit or nonprofit corporation. In case of any conflict between Title 23B RCW, the business corporation act, chapter 24.03 RCW, the nonprofit corporation act, or chapter 24.06 RCW, the nonprofit miscellaneous and mutual corporations act, and this chapter, this chapter shall control.
[1992 c 220 § 14; 1989 c 43 § 3-101.]
(1) Except as provided in subsection (2) of this section, and subject to
the provisions of the declaration, the association
may:
(a) Adopt and amend bylaws, rules, and
regulations;
(b) Adopt and amend budgets for
revenues, expenditures, and reserves, and impose and collect assessments for
common expenses from unit owners;
(c) Hire and
discharge or contract with managing agents and other employees, agents, and
independent contractors;
(d) Institute, defend,
or intervene in litigation or administrative proceedings in its own name on
behalf of itself or two or more unit owners on matters affecting the
condominium;
(e) Make contracts and incur
liabilities;
(f) Regulate the use, maintenance,
repair, replacement, and modification of common
elements;
(g) Cause additional improvements to
be made as a part of the common elements;
(h)
Acquire, hold, encumber, and convey in its own name any right, title, or
interest to real or personal property, but common elements may be conveyed or
subjected to a security interest only pursuant to RCW 64.34.348;
(i) Grant easements, leases, licenses, and concessions through or over the
common elements and petition for or consent to the vacation of streets and
alleys;
(j) Impose and collect any payments,
fees, or charges for the use, rental, or operation of the common elements, other
than limited common elements described in RCW 64.34.204
(2) and (4), and for services provided to unit
owners;
(k) Impose and collect charges for late
payment of assessments pursuant to RCW 64.34.364(13)
and, after notice and an opportunity to be heard by the board of directors or by
such representative designated by the board of directors and in accordance with
such procedures as provided in the declaration or bylaws or rules and
regulations adopted by the board of directors, levy reasonable fines in
accordance with a previously established schedule thereof adopted by the board
of directors and furnished to the owners for violations of the declaration,
bylaws, and rules and regulations of the
association;
(l) Impose and collect reasonable
charges for the preparation and recording of amendments to the declaration,
resale certificates required by RCW 64.34.425,
and statements of unpaid assessments;
(m)
Provide for the indemnification of its officers and board of directors and
maintain directors' and officers' liability
insurance;
(n) Assign its right to future
income, including the right to receive common expense assessments, but only to
the extent the declaration provides;
(o) Join in
a petition for the establishment of a parking and business improvement area,
participate in the rate payers' board or other advisory body set up by the
legislative authority for operation of a parking and business improvement area,
and pay special assessments levied by the legislative authority on a parking and
business improvement area encompassing the condominium property for activities
and projects which benefit the condominium directly or
indirectly;
(p) Exercise any other powers
conferred by the declaration or bylaws;
(q)
Exercise all other powers that may be exercised in this state by the same type
of corporation as the association; and
(r)
Exercise any other powers necessary and proper for the governance and operation
of the association.
(2) The declaration may not
impose limitations on the power of the association to deal with the declarant
which are more restrictive than the limitations imposed on the power of the
association to deal with other persons.
[1993 c 429 § 11; 1990 c 166 § 3; 1989 c 43 § 3-102.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.308
Board of directors and
officers.
(1) Except as provided in the declaration, the bylaws, subsection (2) of
this section, or other provisions of this chapter, the board of directors shall
act in all instances on behalf of the association. In the performance of their
duties, the officers and members of the board of directors are required to
exercise: (a) If appointed by the declarant, the care required of fiduciaries of
the unit owners; or (b) if elected by the unit owners, ordinary and reasonable
care.
(2) The board of directors shall not act
on behalf of the association to amend the declaration in any manner that
requires the vote or approval of the unit owners pursuant to RCW 64.34.264,
to terminate the condominium pursuant to RCW 64.34.268,
or to elect members of the board of directors or determine the qualifications,
powers, and duties, or terms of office of members of the board of directors
pursuant to subsection (6) of this section; but the board of directors may fill
vacancies in its membership for the unexpired portion of any
term.
(3) Within thirty days after adoption of
any proposed budget for the condominium, the board of directors shall provide a
summary of the budget to all the unit owners and shall set a date for a meeting
of the unit owners to consider ratification of the budget not less than fourteen
nor more than sixty days after mailing of the summary. Unless at that meeting
the owners of units to which a majority of the votes in the association are
allocated or any larger percentage specified in the declaration reject the
budget, the budget is ratified, whether or not a quorum is present. In the event
the proposed budget is rejected or the required notice is not given, the
periodic budget last ratified by the unit owners shall be continued until such
time as the unit owners ratify a subsequent budget proposed by the board of
directors.
(4)(a) Subject to subsection (5) of
this section, the declaration may provide for a period of declarant control of
the association, during which period a declarant, or persons designated by the
declarant, may: (i) Appoint and remove the officers and members of the board of
directors; or (ii) veto or approve a proposed action of the board or
association. A declarant's failure to veto or approve such proposed action in
writing within thirty days after receipt of written notice of the proposed
action shall be deemed approval by the
declarant.
(b) Regardless of the period provided
in the declaration, a period of declarant control terminates no later than the
earlier of: (i) Sixty days after conveyance of seventy-five percent of the units
which may be created to unit owners other than a declarant; (ii) two years after
the last conveyance or transfer of record of a unit except as security for a
debt; (iii) two years after any development right to add new units was last
exercised; or (iv) the date on which the declarant records an amendment to the
declaration pursuant to which the declarant voluntarily surrenders the right to
further appoint and remove officers and members of the board of directors. A
declarant may voluntarily surrender the right to appoint and remove officers and
members of the board of directors before termination of that period pursuant to
(i), (ii), and (iii) of this subsection (4)(b), but in that event the declarant
may require, for the duration of the period of declarant control, that specified
actions of the association or board of directors, as described in a recorded
instrument executed by the declarant, be approved by the declarant before they
become effective.
(5) Not later than sixty days
after conveyance of twenty-five percent of the units which may be created to
unit owners other than a declarant, at least one member and not less than
twenty-five percent of the members of the board of directors must be elected by
unit owners other than the declarant. Not later than sixty days after conveyance
of fifty percent of the units which may be created to unit owners other than a
declarant, not less than thirty-three and one-third percent of the members of
the board of directors must be elected by unit owners other than the
declarant.
(6) Within thirty days after the
termination of any period of declarant control, the unit owners shall elect a
board of directors of at least three members, at least a majority of whom must
be unit owners. The number of directors need not exceed the number of units then
in the condominium. The board of directors shall elect the officers. Such
members of the board of directors and officers shall take office upon
election.
(7) Notwithstanding any provision of
the declaration or bylaws to the contrary, the unit owners, by a two-thirds vote
of the voting power in the association present and entitled to vote at any
meeting of the unit owners at which a quorum is present, may remove any member
of the board of directors with or without cause, other than a member appointed
by the declarant. The declarant may not remove any member of the board of
directors elected by the unit owners. Prior to the termination of the period of
declarant control, the unit owners, other than the declarant, may remove by a
two-thirds vote, any director elected by the unit owners.
[1992 c 220 § 15; 1989 c 43 § 3-103.]
(1) Within sixty days after the termination of the period of declarant
control provided in RCW 64.34.308(4)
or, in the absence of such period, within sixty days after the first conveyance
of a unit in the condominium, the declarant shall deliver to the association all
property of the unit owners and of the association held or controlled by the
declarant including, but not limited to:
(a) The
original or a photocopy of the recorded declaration and each amendment to the
declaration;
(b) The certificate of
incorporation and a copy or duplicate original of the articles of incorporation
of the association as filed with the secretary of
state;
(c) The bylaws of the
association;
(d) The minute books, including all
minutes, and other books and records of the
association;
(e) Any rules and regulations that
have been adopted;
(f) Resignations of officers
and members of the board who are required to resign because the declarant is
required to relinquish control of the
association;
(g) The financial records,
including canceled checks, bank statements, and financial statements of the
association, and source documents from the time of incorporation of the
association through the date of transfer of control to the unit
owners;
(h) Association funds or the control of
the funds of the association;
(i) All tangible
personal property of the association, represented by the declarant to be the
property of the association or ostensibly the property of the association, and
an inventory of the property;
(j) Except for
alterations to a unit done by a unit owner other than the declarant, a copy of
the declarant's plans and specifications utilized in the construction or
remodeling of the condominium, with a certificate of the declarant or a licensed
architect or engineer that the plans and specifications represent, to the best
of their knowledge and belief, the actual plans and specifications utilized by
the declarant in the construction or remodeling of the
condominium;
(k) Insurance policies or copies
thereof for the condominium and association;
(l)
Copies of any certificates of occupancy that may have been issued for the
condominium;
(m) Any other permits issued by
governmental bodies applicable to the condominium in force or issued within one
year before the date of transfer of control to the unit
owners;
(n) All written warranties that are
still in effect for the common elements, or any other areas or facilities which
the association has the responsibility to maintain and repair, from the
contractor, subcontractors, suppliers, and manufacturers and all owners' manuals
or instructions furnished to the declarant with respect to installed equipment
or building systems;
(o) A roster of unit owners
and eligible mortgagees and their addresses and telephone numbers, if known, as
shown on the declarant's records and the date of closing of the first sale of
each unit sold by the declarant;
(p) Any leases
of the common elements or areas and other leases to which the association is a
party;
(q) Any employment contracts or service
contracts in which the association is one of the contracting parties or service
contracts in which the association or the unit owners have an obligation or a
responsibility, directly or indirectly, to pay some or all of the fee or charge
of the person performing the service;
(r) A
copy of any qualified warranty issued to the association as provided for in RCW
64.35.505; and
(s) All other contracts to which
the association is a party.
(2) Upon the
transfer of control to the unit owners, the records of the association shall be
audited as of the date of transfer by an independent certified public accountant
in accordance with generally accepted auditing standards unless the unit owners,
other than the declarant, by two-thirds vote elect to waive the audit. The cost
of the audit shall be a common expense unless otherwise provided in the
declaration. The accountant performing the audit shall examine supporting
documents and records, including the cash disbursements and related paid
invoices, to determine if expenditures were for association purposes and the
billings, cash receipts, and related records to determine if the declarant was
charged for and paid the proper amount of assessments.
[2004 c 201 § 10; 1989 c 43 § 3-104.]
(1) No special declarant right, as described in RCW 64.34.020(29),
created or reserved under this chapter may be transferred except by an
instrument evidencing the transfer executed by the declarant or the declarant's
successor and the transferee is recorded in every county in which any portion of
the condominium is located. Each unit owner shall receive a copy of the recorded
instrument, but the failure to furnish the copy shall not invalidate the
transfer.
(2) Upon transfer of any special
declarant right, the liability of a transferor declarant is as
follows:
(a) A transferor is not relieved of any
obligation or liability arising before the transfer and remains liable for
warranty obligations imposed upon the transferor by this chapter. Lack of
privity does not deprive any unit owner of standing to maintain an action to
enforce any obligation of the transferor.
(b) If
a successor to any special declarant right is an affiliate of a declarant as
described in RCW 64.34.020(1),
the transferor is jointly and severally liable with the successor for any
obligations or liabilities of the successor relating to the
condominium.
(c) If a transferor retains any
special declarant right, but transfers other special declarant rights to a
successor who is not an affiliate of the declarant, the transferor is liable for
any obligations or liabilities imposed on a declarant by this chapter or by the
declaration relating to the retained special declarant rights arising after the
transfer.
(d) A transferor has no liability for
any act or omission or any breach of a contractual or warranty obligation
arising from the exercise of a special declarant right by a successor declarant
who is not an affiliate of the transferor.
(3)
In case of foreclosure of a mortgage, tax sale, judicial sale, or sale under
bankruptcy code or receivership proceedings of any unit owned by a declarant or
real property in a condominium subject to development rights, a person acquiring
title to all the real property being foreclosed or sold succeeds to all special
declarant rights related to that real property held by that declarant and to any
rights reserved in the declaration pursuant to RCW 64.34.256
and held by that declarant to maintain models, sales offices, and signs, unless
such person requests that all or any of such rights not be transferred. The
instrument conveying title shall describe any special declarant rights not being
transferred.
(4) Upon foreclosure of a mortgage,
tax sale, judicial sale, or sale under bankruptcy code or receivership
proceedings of all units and other real property in a condominium owned by a
declarant:
(a) The declarant ceases to have any
special declarant rights; and
(b) The period of
declarant control as described in RCW 64.34.308(4)
terminates unless the judgment or instrument conveying title provides for
transfer of all special declarant rights held by that declarant to a successor
declarant.
(5) The liabilities and obligations
of a person who succeeds to special declarant rights are as
follows:
(a) A successor to any special
declarant right who is an affiliate of a declarant is subject to all obligations
and liabilities imposed on the transferor by this chapter or by the
declaration;
(b) A successor to any special
declarant right, other than a successor described in (c) or (d) of this
subsection, who is not an affiliate of a declarant is subject to all obligations
and liabilities imposed by this chapter or the
declaration:
(i) On a declarant which relate to
such successor's exercise or nonexercise of special declarant rights;
or
(ii) On the declarant's transferor, other
than:
(A) Misrepresentations by any previous
declarant;
(B) Warranty obligations on
improvements made by any previous declarant or made before the condominium was
created;
(C) Breach of any fiduciary obligation
by any previous declarant or the declarant's appointees to the board of
directors; or
(D) Any liability or obligation
imposed on the transferor as a result of the transferor's acts or omissions
after the transfer;
(c) A successor to only a
right reserved in the declaration to maintain models, sales offices, and signs
as described in RCW 64.34.256,
if the successor is not an affiliate of a declarant, may not exercise any other
special declarant right and is not subject to any liability or obligation as a
declarant, except the obligation to provide a public offering statement and any
liability arising as a result thereof;
(d) A
successor to all special declarant rights held by the successor's transferor who
is not an affiliate of that declarant and who succeeded to those rights pursuant
to a foreclosure, a deed in lieu of foreclosure, or a judgment or instrument
conveying title to units under subsection (3) of this section may declare his or
her intention in a recorded instrument to hold those rights solely for transfer
to another person. Thereafter, until transferring all special declarant rights
to any person acquiring title to any unit owned by the successor or until
recording an instrument permitting exercise of all those rights, that successor
may not exercise any of those rights other than any right held by the
successor's transferor to control the board of directors in accordance with the
provisions of RCW 64.34.308(4)
for the duration of any period of declarant control, and any attempted exercise
of those rights is void. So long as a successor declarant may not exercise
special declarant rights under this subsection, the successor is not subject to
any liability or obligation as a declarant other than liability for the
successor's acts and omissions under RCW 64.34.308(4);
(e) Nothing in this section subjects any successor to a special declarant right
to any claims against or other obligations of a transferor declarant, other than
claims and obligations arising under this chapter or the declaration.
[1989 c 43 § 3-105.]
If entered into before the board of directors elected by the unit owners pursuant to RCW 64.34.308(6) takes office, (1) any management contract, employment contract, or lease of recreational or parking areas or facilities, (2) any other contract or lease between the association and a declarant or an affiliate of a declarant, or (3) any contract or lease that is not bona fide or was unconscionable to the unit owners at the time entered into under the circumstances then prevailing may be terminated without penalty by the association at any time after the board of directors elected by the unit owners pursuant to RCW 64.34.308(6) takes office upon not less than ninety days' notice to the other party or within such lesser notice period provided for without penalty in the contract or lease. This section does not apply to any lease, the termination of which would terminate the condominium or reduce its size, unless the real property subject to that lease was included in the condominium for the purpose of avoiding the right of the association to terminate a lease under this section.
[1989 c 43 § 3-106.]
(1) Unless provided for in the declaration, the bylaws of the association
shall provide for:
(a) The number,
qualifications, powers and duties, terms of office, and manner of electing and
removing the board of directors and officers and filling
vacancies;
(b) Election by the board of
directors of such officers of the association as the bylaws
specify;
(c) Which, if any, of its powers the
board of directors or officers may delegate to other persons or to a managing
agent;
(d) Which of its officers may prepare,
execute, certify, and record amendments to the declaration on behalf of the
association;
(e) The method of amending the
bylaws; and
(f) A statement of the standard of
care for officers and members of the board of directors imposed by RCW 64.34.308(1).
(2) Subject to the provisions of the declaration, the bylaws may provide for any
other matters the association deems necessary and
appropriate.
(3) In determining the
qualifications of any officer or director of the association, notwithstanding
the provision of RCW 64.34.020(32)
the term "unit owner" in such context shall, unless the declaration or bylaws
otherwise provide, be deemed to include any director, officer, partner in, or
trustee of any person, who is, either alone or in conjunction with another
person or persons, a unit owner. Any officer or director of the association who
would not be eligible to serve as such if he or she were not a director,
officer, partner in, or trustee of such a person shall be disqualified from
continuing in office if he or she ceases to have any such affiliation with that
person, or if that person would have been disqualified from continuing in such
office as a natural person.
[2004 c 201 § 3; 1992 c 220 § 16; 1989 c 43 § 3-107.]
(1) Except to the extent provided by the declaration, subsection (2) of
this section, or RCW 64.34.352(7),
the association is responsible for maintenance, repair, and replacement of the
common elements, including the limited common elements, and each unit owner is
responsible for maintenance, repair, and replacement of the owner's unit. Each
unit owner shall afford to the association and the other unit owners, and to
their agents or employees, access through the owner's unit and limited common
elements reasonably necessary for those purposes. If damage is inflicted on the
common elements, or on any unit through which access is taken, the unit owner
responsible for the damage, or the association if it is responsible, shall be
liable for the repair thereof.
(2) In addition
to the liability that a declarant as a unit owner has under this chapter, the
declarant alone is liable for all expenses in connection with real property
subject to development rights except that the declaration may provide that the
expenses associated with the operation, maintenance, repair, and replacement of
a common element that the owners have a right to use shall be paid by the
association as a common expense. No other unit owner and no other portion of the
condominium is subject to a claim for payment of those expenses. Unless the
declaration provides otherwise, any income or proceeds from real property
subject to development rights inures to the declarant.
[1989 c 43 § 3-108.]
A meeting of the association must be held at least once each year. Special meetings of the association may be called by the president, a majority of the board of directors, or by unit owners having twenty percent or any lower percentage specified in the declaration or bylaws of the votes in the association. Not less than ten nor more than sixty days in advance of any meeting, the secretary or other officer specified in the bylaws shall cause notice to be hand-delivered or sent prepaid by first class United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit owner. The notice of any meeting shall state the time and place of the meeting and the items on the agenda to be voted on by the members, including the general nature of any proposed amendment to the declaration or bylaws, changes in the previously approved budget that result in a change in assessment obligations, and any proposal to remove a director or officer.
[1989 c 43 § 3-109.]
(1) Unless the bylaws specify a larger percentage, a quorum is present
throughout any meeting of the association if the owners of units to which
twenty-five percent of the votes of the association are allocated are present in
person or by proxy at the beginning of the
meeting.
(2) Unless the bylaws specify a larger
percentage, a quorum is deemed present throughout any meeting of the board of
directors if persons entitled to cast fifty percent of the votes on the board of
directors are present at the beginning of the meeting.
[1989 c 43 § 3-110.]
(1) If only one of the multiple owners of a unit is present at a meeting
of the association or has delivered a written ballot or proxy to the association
secretary, the owner is entitled to cast all the votes allocated to that unit.
If more than one of the multiple owners are present or has delivered a written
ballot or proxy to the association secretary, the votes allocated to that unit
may be cast only in accordance with the agreement of a majority in interest of
the multiple owners, unless the declaration expressly provides otherwise. There
is majority agreement if any one of the multiple owners casts the votes
allocated to that unit without protest being made promptly to the person
presiding over the meeting by any of the other owners of the
unit.
(2) Votes allocated to a unit may be cast
pursuant to a proxy duly executed by a unit owner. If a unit is owned by more
than one person, each owner of the unit may vote or register protest to the
casting of votes by the other owners of the unit through a duly executed proxy.
A unit owner may not revoke a proxy given pursuant to this section except by
actual notice of revocation to the person presiding over a meeting of the
association. A proxy is void if it is not dated or purports to be revocable
without notice. Unless stated otherwise in the proxy, a proxy terminates eleven
months after its date of issuance.
(3) If the
declaration requires that votes on specified matters affecting the condominium
be cast by lessees rather than unit owners of leased units: (a) The provisions
of subsections (1) and (2) of this section apply to lessees as if they were unit
owners; (b) unit owners who have leased their units to other persons may not
cast votes on those specified matters; and (c) lessees are entitled to notice of
meetings, access to records, and other rights respecting those matters as if
they were unit owners. Unit owners must also be given notice, in the manner
provided in RCW 64.34.332,
of all meetings at which lessees may be entitled to
vote.
(4) No votes allocated to a unit owned by
the association may be cast, and in determining the percentage of votes required
to act on any matter, the votes allocated to units owned by the association
shall be disregarded.
[1992 c 220 § 17; 1989 c 43 § 3-111.]
Neither the association nor any unit owner except the declarant is liable for that declarant's torts in connection with any part of the condominium which that declarant has the responsibility to maintain. Otherwise, an action alleging a wrong done by the association must be brought against the association and not against any unit owner or any officer or director of the association. Unless the wrong was done by a unit owner other than the declarant, if the wrong by the association occurred during any period of declarant control and the association gives the declarant reasonable notice of and an opportunity to defend against the action, the declarant who then controlled the association is liable to the association or to any unit owner: (1) For all tort losses not covered by insurance suffered by the association or that unit owner; and (2) for all costs which the association would not have incurred but for a breach of contract or other wrongful act or omission by the association. If the declarant does not defend the action and is determined to be liable to the association under this section, the declarant is also liable for all litigation expenses, including reasonable attorneys' fees, incurred by the association in such defense. Any statute of limitations affecting the association's right of action under this section is tolled until the period of declarant control terminates. A unit owner is not precluded from bringing an action contemplated by this section because he or she is a unit owner or a member or officer of the association. Liens resulting from judgments against the association are governed by RCW 64.34.368.
[1989 c 43 § 3-112.]
(1) Portions of the common elements which are not necessary for the
habitability of a unit may be conveyed or subjected to a security interest by
the association if the owners of units to which at least eighty percent of the
votes in the association are allocated, including eighty percent of the votes
allocated to units not owned by a declarant or an affiliate of a declarant, or
any larger percentage the declaration specifies, agree to that action; but all
the owners of units to which any limited common element is allocated must agree
in order to convey that limited common element or subject it to a security
interest. The declaration may specify a smaller percentage, but not less than
sixty-seven percent of the votes not held by a declarant or an affiliate of a
declarant, only if all of the units are restricted exclusively to nonresidential
uses. Proceeds of the sale or financing are an asset of the association. The
declaration may provide for a special allocation or distribution of the proceeds
of the sale or refinancing of a limited common
element.
(2) An agreement to convey common
elements or subject them to a security interest must be evidenced by the
execution of an agreement, or ratifications thereof, in the same manner as a
deed, by the requisite number of unit owners. The agreement must specify a date
after which the agreement will be void unless recorded before that date. The
agreement and all ratifications thereof must be recorded in every county in
which a portion of the condominium is situated and is effective only upon
recording.
(3) The association, on behalf of the
unit owners, may contract to convey common elements or subject them to a
security interest, but the contract is not enforceable against the association
until approved pursuant to subsections (1) and (2) of this section. Thereafter,
the association has all powers necessary and appropriate to effect the
conveyance or encumbrance, including the power to execute deeds or other
instruments.
(4) Any purported conveyance,
encumbrance, or other voluntary transfer of common elements, unless made
pursuant to this section, is void.
(5) A
conveyance or encumbrance of common elements pursuant to this section shall not
deprive any unit of its rights of access and
support.
(6) A conveyance or encumbrance of
common elements pursuant to this section shall not affect the priority or
validity of preexisting encumbrances.
[1989 c 43 § 3-113.]
(1) Commencing not later than the time of the first conveyance of a unit
to a person other than a declarant, the association shall maintain, to the
extent reasonably available:
(a) Property
insurance on the condominium, which may, but need not, include equipment,
improvements, and betterments in a unit installed by the declarant or the unit
owners, insuring against all risks of direct physical loss commonly insured
against. The total amount of insurance after application of any deductibles
shall be not less than eighty percent, or such greater amount specified in the
declaration, of the actual cash value of the insured property at the time the
insurance is purchased and at each renewal date, exclusive of land, excavations,
foundations, and other items normally excluded from property policies;
and
(b) Liability insurance, including medical
payments insurance, in an amount determined by the board of directors but not
less than the amount specified in the declaration, covering all occurrences
commonly insured against for death, bodily injury, and property damage arising
out of or in connection with the use, ownership, or maintenance of the common
elements.
(2) If the insurance described in
subsection (1) of this section is not reasonably available, or is modified,
canceled, or not renewed, the association promptly shall cause notice of that
fact to be hand-delivered or sent prepaid by first class United States mail to
all unit owners, to each eligible mortgagee, and to each mortgagee to whom a
certificate or memorandum of insurance has been issued at their respective last
known addresses. The declaration may require the association to carry any other
insurance, and the association in any event may carry any other insurance it
deems appropriate to protect the association or the unit
owners.
(3) Insurance policies carried pursuant
to subsection (1) of this section shall provide
that:
(a) Each unit owner is an insured person
under the policy with respect to liability arising out of the owner's interest
in the common elements or membership in the
association;
(b) The insurer waives its right to
subrogation under the policy against any unit owner, member of the owner's
household, and lessee of the owner;
(c) No act
or omission by any unit owner, unless acting within the scope of the owner's
authority on behalf of the association, will void the policy or be a condition
to recovery under the policy; and
(d) If, at the
time of a loss under the policy, there is other insurance in the name of a unit
owner covering the same risk covered by the policy, the association's policy
provides primary insurance.
(4) Any loss covered
by the property insurance under subsection (1)(a) of this section must be
adjusted with the association, but the insurance proceeds for that loss are
payable to any insurance trustee designated for that purpose, or otherwise to
the association, and not to any holder of a mortgage. The insurance trustee or
the association shall hold any insurance proceeds in trust for unit owners and
lienholders as their interests may appear. Subject to the provisions of
subsection (7) of this section, the proceeds must be disbursed first for the
repair or restoration of the damaged property, and unit owners and lienholders
are not entitled to receive payment of any portion of the proceeds unless there
is a surplus of proceeds after the property has been completely repaired or
restored or the condominium is terminated.
(5)
An insurance policy issued to the association does not prevent a unit owner from
obtaining insurance for the owner's own benefit.
(6) An insurer that has issued an insurance policy under this section shall
issue certificates or memoranda of insurance to the association and, upon
written request, to any unit owner or holder of a mortgage. The insurer issuing
the policy may not modify the amount or the extent of the coverage of the policy
or cancel or refuse to renew the policy unless the insurer has complied with all
applicable provisions of chapter 48.18 RCW pertaining to the cancellation or
nonrenewal of contracts of insurance. The insurer shall not modify the amount or
the extent of the coverage of the policy, or cancel or refuse to renew the
policy without complying with this section.
(7)
Any portion of the condominium for which insurance is required under this
section which is damaged or destroyed shall be repaired or replaced promptly by
the association unless: (a) The condominium is terminated; (b) repair or
replacement would be illegal under any state or local health or safety statute
or ordinance; or (c) eighty percent of the unit owners, including every owner of
a unit or assigned limited common element which will not be rebuilt, vote not to
rebuild. The cost of repair or replacement in excess of insurance proceeds and
reserves is a common expense. If all of the damaged or destroyed portions of the
condominium are not repaired or replaced: (i) The insurance proceeds
attributable to the damaged common elements shall be used to restore the damaged
area to a condition compatible with the remainder of the condominium; (ii) the
insurance proceeds attributable to units and limited common elements which are
not rebuilt shall be distributed to the owners of those units and the owners of
the units to which those limited common elements were allocated, or to
lienholders, as their interests may appear; and (iii) the remainder of the
proceeds shall be distributed to all the unit owners or lienholders, as their
interests may appear, in proportion to the common element interests of all the
units. If the unit owners vote not to rebuild any unit, that unit's allocated
interests are automatically reallocated upon the vote as if the unit had been
condemned under RCW 64.34.060(1),
and the association promptly shall prepare, execute, and record an amendment to
the declaration reflecting the reallocations. Notwithstanding the provisions of
this subsection, RCW 64.34.268
governs the distribution of insurance proceeds if the condominium is
terminated.
(8) The provisions of this section
may be varied or waived as provided in the declaration if all units of a
condominium are restricted to nonresidential use.
[1992 c 220 § 18; 1990 c 166 § 4; 1989 c 43 § 3-114.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.354
Insurance -- Conveyance.
Promptly upon the conveyance of a unit, the new unit owner shall notify the association of the date of the conveyance and the unit owner's name and address. The association shall notify each insurance company that has issued an insurance policy to the association for the benefit of the owners under RCW 64.34.352 of the name and address of the new owner and request that the new owner be made a named insured under such policy.
[1990 c 166 § 8.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.356
Surplus funds.
Unless otherwise provided in the declaration, any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of reserves shall, in the discretion of the board of directors, either be paid to the unit owners in proportion to their common expense liabilities or credited to them to reduce their future common expense assessments.
[1989 c 43 § 3-115.]
(1) Until the association makes a common expense assessment, the
declarant shall pay all common expenses. After any assessment has been made by
the association, assessments must be made against all units, based on a budget
adopted by the association.
(2) Except for
assessments under subsections (3), (4), and (5) of this section, all common
expenses must be assessed against all the units in accordance with the
allocations set forth in the declaration pursuant to RCW 64.34.224(1).
Any past due common expense assessment or installment thereof bears interest at
the rate established by the association pursuant to RCW 64.34.364.
(3) To the extent required by the declaration:
(a) Any common expense associated with the operation, maintenance, repair, or
replacement of a limited common element shall be paid by the owner of or
assessed against the units to which that limited common element is assigned,
equally, or in any other proportion that the declaration
provides;
(b) Any common expense or portion
thereof benefiting fewer than all of the units must be assessed exclusively
against the units benefited;
(c) The costs of
insurance must be assessed in proportion to risk;
and
(d) The costs of utilities must be assessed
in proportion to usage.
(4) Assessments to pay a
judgment against the association pursuant to RCW 64.34.368(1)
may be made only against the units in the condominium at the time the judgment
was entered in proportion to their allocated common expense liabilities at the
time the judgment was entered.
(5) To the extent
that any common expense is caused by the misconduct of any unit owner, the
association may assess that expense against the owner's
unit.
(6) If common expense liabilities are
reallocated, common expense assessments and any installment thereof not yet due
shall be recalculated in accordance with the reallocated common expense
liabilities.
[1990 c 166 § 5; 1989 c 43 § 3-116.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.364
Lien for assessments.
(1) The association has a lien on a unit for any unpaid assessments
levied against a unit from the time the assessment is
due.
(2) A lien under this section shall be
prior to all other liens and encumbrances on a unit except: (a) Liens and
encumbrances recorded before the recording of the declaration; (b) a mortgage on
the unit recorded before the date on which the assessment sought to be enforced
became delinquent; and (c) liens for real property taxes and other governmental
assessments or charges against the unit. A lien under this section is not
subject to the provisions of chapter 6.13 RCW.
(3) Except as provided in subsections (4) and (5) of this section, the lien
shall also be prior to the mortgages described in subsection (2)(b) of this
section to the extent of assessments for common expenses, excluding any amounts
for capital improvements, based on the periodic budget adopted by the
association pursuant to RCW 64.34.360(1)
which would have become due during the six months immediately preceding the date
of a sheriff's sale in an action for judicial foreclosure by either the
association or a mortgagee, the date of a trustee's sale in a nonjudicial
foreclosure by a mortgagee, or the date of recording of the declaration of
forfeiture in a proceeding by the vendor under a real estate
contract.
(4) The priority of the association's
lien against units encumbered by a mortgage held by an eligible mortgagee or by
a mortgagee which has given the association a written request for a notice of
delinquent assessments shall be reduced by up to three months if and to the
extent that the lien priority under subsection (3) of this section includes
delinquencies which relate to a period after such holder becomes an eligible
mortgagee or has given such notice and before the association gives the holder a
written notice of the delinquency. This subsection does not affect the priority
of mechanics' or materialmen's liens, or the priority of liens for other
assessments made by the association.
(5) If the
association forecloses its lien under this section nonjudicially pursuant to
chapter 61.24 RCW, as provided by subsection (9) of this section, the
association shall not be entitled to the lien priority provided for under
subsection (3) of this section.
(6) Unless the
declaration otherwise provides, if two or more associations have liens for
assessments created at any time on the same real estate, those liens have equal
priority.
(7) Recording of the declaration
constitutes record notice and perfection of the lien for assessments. While no
further recording of any claim of lien for assessment under this section shall
be required to perfect the association's lien, the association may record a
notice of claim of lien for assessments under this section in the real property
records of any county in which the condominium is located. Such recording shall
not constitute the written notice of delinquency to a mortgagee referred to in
subsection (2) of this section.
(8) A lien for
unpaid assessments and the personal liability for payment of assessments is
extinguished unless proceedings to enforce the lien or collect the debt are
instituted within three years after the amount of the assessments sought to be
recovered becomes due.
(9) The lien arising
under this section may be enforced judicially by the association or its
authorized representative in the manner set forth in chapter 61.12 RCW. The lien
arising under this section may be enforced nonjudicially in the manner set forth
in chapter 61.24 RCW for nonjudicial foreclosure of deeds of trust if the
declaration (a) contains a grant of the condominium in trust to a trustee
qualified under RCW 61.24.010 to secure the obligations of the unit owners to
the association for the payment of assessments, (b) contains a power of sale,
(c) provides in its terms that the units are not used principally for
agricultural or farming purposes, and (d) provides that the power of sale is
operative in the case of a default in the obligation to pay assessments. The
association or its authorized representative shall have the power, unless
prohibited by the declaration, to purchase the unit at the foreclosure sale and
to acquire, hold, lease, mortgage, or convey the same. Upon an express waiver in
the complaint of any right to a deficiency judgment in a judicial foreclosure
action, the period of redemption shall be eight months. Nothing in this section
shall prohibit an association from taking a deed in lieu of
foreclosure.
(10) From the time of commencement
of an action by the association to foreclose a lien for nonpayment of delinquent
assessments against a unit that is not occupied by the owner thereof, the
association shall be entitled to the appointment of a receiver to collect from
the lessee thereof the rent for the unit as and when due. If the rental is not
paid, the receiver may obtain possession of the unit, refurbish it for rental up
to a reasonable standard for rental units in this type of condominium, rent the
unit or permit its rental to others, and apply the rents first to the cost of
the receivership and attorneys' fees thereof, then to the cost of refurbishing
the unit, then to applicable charges, then to costs, fees, and charges of the
foreclosure action, and then to the payment of the delinquent assessments. Only
a receiver may take possession and collect rents under this subsection, and a
receiver shall not be appointed less than ninety days after the delinquency. The
exercise by the association of the foregoing rights shall not affect the
priority of preexisting liens on the unit.
(11)
Except as provided in subsection (3) of this section, the holder of a mortgage
or other purchaser of a unit who obtains the right of possession of the unit
through foreclosure shall not be liable for assessments or installments thereof
that became due prior to such right of possession. Such unpaid assessments shall
be deemed to be common expenses collectible from all the unit owners, including
such mortgagee or other purchaser of the unit. Foreclosure of a mortgage does
not relieve the prior owner of personal liability for assessments accruing
against the unit prior to the date of such sale as provided in this
subsection.
(12) In addition to constituting a
lien on the unit, each assessment shall be the joint and several obligation of
the owner or owners of the unit to which the same are assessed as of the time
the assessment is due. In a voluntary conveyance, the grantee of a unit shall be
jointly and severally liable with the grantor for all unpaid assessments against
the grantor up to the time of the grantor's conveyance, without prejudice to the
grantee's right to recover from the grantor the amounts paid by the grantee
therefor. Suit to recover a personal judgment for any delinquent assessment
shall be maintainable in any court of competent jurisdiction without foreclosing
or waiving the lien securing such sums.
(13) The
association may from time to time establish reasonable late charges and a rate
of interest to be charged on all subsequent delinquent assessments or
installments thereof. In the absence of another established nonusurious rate,
delinquent assessments shall bear interest from the date of delinquency at the
maximum rate permitted under RCW 19.52.020 on the date on which the assessments
became delinquent.
(14) The association shall be
entitled to recover any costs and reasonable attorneys' fees incurred in
connection with the collection of delinquent assessments, whether or not such
collection activities result in suit being commenced or prosecuted to judgment.
In addition, the association shall be entitled to recover costs and reasonable
attorneys' fees if it prevails on appeal and in the enforcement of a
judgment.
(15) The association upon written
request shall furnish to a unit owner or a mortgagee a statement signed by an
officer or authorized agent of the association setting forth the amount of
unpaid assessments against that unit. The statement shall be furnished within
fifteen days after receipt of the request and is binding on the association, the
board of directors, and every unit owner, unless and to the extent known by the
recipient to be false.
(16) To the extent not
inconsistent with this section, the declaration may provide for such additional
remedies for collection of assessments as may be permitted by law.
[1990 c 166 § 6; 1989 c 43 § 3-117.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.368
Liens -- General provisions.
(1) Except as provided in subsection (2) of this section, a judgment for
money against the association perfected under RCW 4.64.020 is a lien in favor of
the judgment lienholder against all of the units in the condominium and their
interest in the common elements at the time the judgment was entered. No other
property of a unit owner is subject to the claims of creditors of the
association.
(2) If the association has granted
a security interest in the common elements to a creditor of the association
pursuant to RCW 64.34.348,
the holder of that security interest shall exercise its right first against such
common elements before its judgment lien on any unit may be
enforced.
(3) Whether perfected before or after
the creation of the condominium, if a lien other than a mortgage, including a
judgment lien or lien attributable to work performed or materials supplied
before creation of the condominium, becomes effective against two or more units,
the unit owner of an affected unit may pay to the lienholder the amount of the
lien attributable to the owner's unit, and the lienholder, upon receipt of
payment, promptly shall deliver a release of the lien covering that unit. The
amount of the payment must be proportionate to the ratio which that unit owner's
allocated common expense liability bears to the allocated common expense
liabilities of all unit owners whose units are subject to the lien. After
payment, the association may not assess or have a lien against that unit owner's
unit for any portion of the common expenses incurred in connection with that
lien.
(4) A judgment against the association
shall be filed in the name of the condominium and the association and, when so
filed, is notice of the lien against the units.
[1989 c 43 § 3-118.]
(1) The association shall keep financial records sufficiently detailed to
enable the association to comply with RCW 64.34.425.
All financial and other records of the association, including but not limited to
checks, bank records, and invoices, are the property of the association, but
shall be made reasonably available for examination and copying by the manager of
the association, any unit owner, or the owner's authorized agents. At least
annually, the association shall prepare, or cause to be prepared, a financial
statement of the association in accordance with generally accepted accounting
principles. The financial statements of condominiums consisting of fifty or more
units shall be audited at least annually by a certified public accountant. In
the case of a condominium consisting of fewer than fifty units, an annual audit
is also required but may be waived annually by unit owners other than the
declarant of units to which sixty percent of the votes are allocated, excluding
the votes allocated to units owned by the
declarant.
(2) The funds of an association shall
be kept in accounts in the name of the association and shall not be commingled
with the funds of any other association, nor with the funds of any manager of
the association or any other person responsible for the custody of such funds.
Any reserve funds of an association shall be kept in a segregated account and
any transaction affecting such funds, including the issuance of checks, shall
require the signature of at least two persons who are officers or directors of
the association.
[1992 c 220 § 19; 1990 c 166 § 7; 1989 c 43 § 3-119.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.376
Association as trustee.
With respect to a third person dealing with the association in the association's capacity as a trustee, the existence of trust powers and their proper exercise by the association may be assumed without inquiry. A third person is not bound to inquire whether the association has power to act as trustee or is properly exercising trust powers. A third person, without actual knowledge that the association is exceeding or improperly exercising its powers, is fully protected in dealing with the association as if it possessed and properly exercised the powers it purports to exercise. A third person is not bound to assure the proper application of trust assets paid or delivered to the association in its capacity as trustee.
[1989 c 43 § 3-120.]
(1) This article applies to all units subject to this chapter, except as
provided in subsection (2) of this section and unless and to the extent
otherwise agreed to in writing by the seller and purchasers of those units that
are restricted to nonresidential use in the
declaration.
(2) This article shall not apply in
the case of:
(a) A conveyance by gift, devise,
or descent;
(b) A conveyance pursuant to court
order;
(c) A disposition by a government or
governmental agency;
(d) A conveyance by
foreclosure;
(e) A disposition of all of the
units in a condominium in a single transaction;
(f) A disposition to other than a purchaser as defined in RCW 64.34.020(26);
or
(g) A disposition that may be canceled at any
time and for any reason by the purchaser without penalty.
[1992 c 220 § 20; 1990 c 166 § 9; 1989 c 43 § 4-101.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.405
Public offering statement --
Requirements -- Liability.
(1) Except as provided in subsection (2) of this section or when no
public offering statement is required, a declarant shall prepare a public
offering statement conforming to the requirements of RCW 64.34.410
and 64.34.415.
(2) A declarant may transfer responsibility for preparation of all or a part of
the public offering statement to a successor declarant pursuant to RCW 64.34.316
or to a dealer who intends to offer units in the condominium for the person's
own account.
(3) Any declarant or dealer who
offers a unit for the person's own account to a purchaser shall deliver a public
offering statement in the manner prescribed in RCW 64.34.420(1).
Any agent, attorney, or other person assisting the declarant or dealer in
preparing the public offering statement may rely upon information provided by
the declarant or dealer without independent investigation. The agent, attorney,
or other person shall not be liable for any material misrepresentation in or
omissions of material facts from the public offering statement unless the person
had actual knowledge of the misrepresentation or omission at the time the public
offering statement was prepared. The declarant or dealer shall be liable for any
misrepresentation contained in the public offering statement or for any omission
of material fact therefrom if the declarant or dealer had actual knowledge of
the misrepresentation or omission or, in the exercise of reasonable care, should
have known of the misrepresentation or omission.
(4) If a unit is part of a condominium and is part of another real property
regime in connection with the sale of which the delivery of a public offering
statement is required under the laws of this state, a single public offering
statement, conforming to the requirements of RCW 64.34.410
and 64.34.415
as those requirements relate to all real property regimes in which the unit is
located and conforming to any other requirements imposed under the laws of this
state, may be prepared and delivered in lieu of providing two or more public
offering statements.
[1989 c 43 § 4-102.]
(1) A public offering statement shall contain the following
information:
(a) The name and address of the
condominium;
(b) The name and address of the
declarant;
(c) The name and address of the
management company, if any;
(d) The relationship
of the management company to the declarant, if
any;
(e) A list of up to the five most recent
condominium projects completed by the declarant or an affiliate of the declarant
within the past five years, including the names of the condominiums, their
addresses, and the number of existing units in each. For the purpose of this
section, a condominium is "completed" when any one unit therein has been rented
or sold;
(f) The nature of the interest being
offered for sale;
(g) A brief description of the
permitted uses and use restrictions pertaining to the units and the common
elements;
(h) A brief description of the
restrictions, if any, on the renting or leasing of units by the declarant or
other unit owners, together with the rights, if any, of the declarant to rent or
lease at least a majority of units;
(i) The
number of existing units in the condominium and the maximum number of units that
may be added to the condominium;
(j) A list of
the principal common amenities in the condominium which materially affect the
value of the condominium and those that will or may be added to the
condominium;
(k) A list of the limited common
elements assigned to the units being offered for
sale;
(l) The identification of any real
property not in the condominium, the owner of which has access to any of the
common elements, and a description of the terms of such
access;
(m) The identification of any real
property not in the condominium to which unit owners have access and a
description of the terms of such access;
(n) The
status of construction of the units and common elements, including estimated
dates of completion if not completed;
(o) The
estimated current common expense liability for the units being
offered;
(p) An estimate of any payment with
respect to the common expense liability for the units being offered which will
be due at closing;
(q) The estimated current
amount and purpose of any fees not included in the common expenses and charged
by the declarant or the association for the use of any of the common
elements;
(r) Any assessments which have been
agreed to or are known to the declarant and which, if not paid, may constitute a
lien against any units or common elements in favor of any governmental
agency;
(s) The identification of any parts of
the condominium, other than the units, which any individual owner will have the
responsibility for maintaining;
(t) If the
condominium involves a conversion condominium, the information required by RCW
64.34.415;
(u) Whether timesharing is restricted or prohibited, and if restricted, a
general description of such restrictions;
(v) A
list of all development rights reserved to the declarant and all special
declarant rights reserved to the declarant, together with the dates such rights
must terminate, and a copy of or reference by recording number to any recorded
transfer of a special declarant right;
(w) A
description of any material differences in terms of furnishings, fixtures,
finishes, and equipment between any model unit available to the purchaser at the
time the agreement for sale is executed and the unit being
offered;
(x) Any liens on real property to be
conveyed to the association required to be disclosed pursuant to RCW 64.34.435(2)(b);
(y) A list of any physical hazards known to the declarant which particularly
affect the condominium or the immediate vicinity in which the condominium is
located and which are not readily ascertainable by the
purchaser;
(z) A brief description of any
construction warranties to be provided to the
purchaser;
(aa) Any building code violation
citations received by the declarant in connection with the condominium which
have not been corrected;
(bb) A statement of any
unsatisfied judgments or pending suits against the association, a statement of
the status of any pending suits material to the condominium of which the
declarant has actual knowledge, and a statement of any litigation brought by an
owners' association, unit owner, or governmental entity in which the declarant
or any affiliate of the declarant has been a defendant, arising out of the
construction, sale, or administration of any condominium within the previous
five years, together with the results thereof, if
known;
(cc) Any rights of first refusal to lease
or purchase any unit or any of the common
elements;
(dd) The extent to which the insurance
provided by the association covers furnishings, fixtures, and equipment located
in the unit;
(ee) A notice which describes a
purchaser's right to cancel the purchase agreement or extend the closing under
RCW 64.34.420,
including applicable time frames and procedures;
(ff) Any reports or statements required by RCW 64.34.415
or 64.34.440(6)(a).
RCW 64.34.415
shall apply to the public offering statement of a condominium in connection with
which a final certificate of occupancy was issued more than sixty calendar
months prior to the preparation of the public offering statement whether or not
the condominium is a conversion condominium as defined in RCW 64.34.020(10);
(gg) A list of the documents which the prospective purchaser is entitled to
receive from the declarant before the rescission period
commences;
(hh) A notice which states: A
purchaser may not rely on any representation or express warranty unless it is
contained in the public offering statement or made in writing signed by the
declarant or by any person identified in the public offering statement as the
declarant's agent;
(ii) A notice which states:
This public offering statement is only a summary of some of the significant
aspects of purchasing a unit in this condominium and the condominium documents
are complex, contain other important information, and create binding legal
obligations. You should consider seeking the assistance of legal
counsel;
(jj) Any other information and
cross-references which the declarant believes will be helpful in describing the
condominium to the recipients of the public offering statement, all of which may
be included or not included at the option of the
declarant;
(kk) A notice that addresses
compliance or noncompliance with the housing for older persons act of 1995, P.L.
104-76, as enacted on December 28, 1995;
(ll) A
notice that is substantially in the form required by RCW 64.50.050;
and
(mm) A statement, as required by RCW
64.35.210, as to whether the units or common elements of the condominium are
covered by a qualified warranty, and a history of claims under any such
warranty.
(2) The public offering statement
shall include copies of each of the following documents: The declaration, the
survey map and plans, the articles of incorporation of the association, bylaws
of the association, rules and regulations, if any, current or proposed budget
for the association, and the balance sheet of the association current within
ninety days if assessments have been collected for ninety days or
more.
If any of the foregoing documents listed
in this subsection are not available because they have not been executed,
adopted, or recorded, drafts of such documents shall be provided with the public
offering statement, and, before closing the sale of a unit, the purchaser shall
be given copies of any material changes between the draft of the proposed
documents and the final documents.
(3) The
disclosures required by subsection (1)(g), (k), (s), (u), (v), and (cc) of this
section shall also contain a reference to specific sections in the condominium
documents which further explain the information
disclosed.
(4) The disclosures required by
subsection (1)(ee), (hh), (ii), and (ll) of this section shall be located at the
top of the first page of the public offering statement and be typed or printed
in ten-point bold face type size.
(5) A
declarant shall promptly amend the public offering statement to reflect any
material change in the information required by this section.
[2004 c 201 § 11; 2002 c 323 § 10; 1997 c 400 § 1; 1992 c 220 § 21; 1989 c 43 § 4-103.]
(1) The public offering statement of a conversion condominium shall
contain, in addition to the information required by RCW 64.34.410:
(a) Either a copy of a report prepared by an independent, licensed architect or
engineer, or a statement by the declarant based on such report, which report or
statement describes, to the extent reasonably ascertainable, the present
condition of all structural components and mechanical and electrical
installations material to the use and enjoyment of the
condominium;
(b) A statement by the declarant of
the expected useful life of each item reported on in (a) of this subsection or a
statement that no representations are made in that regard;
and
(c) A list of any outstanding notices of
uncured violations of building code or other municipal regulations, together
with the estimated cost of curing those violations. Unless the purchaser waives
in writing the curing of specific violations, the extent to which the declarant
will cure such violations prior to the closing of the sale of a unit in the
condominium shall be included.
(2) This section
applies only to condominiums containing units that may be occupied for
residential use.
[1992 c 220 § 22; 1990 c 166 § 10; 1989 c 43 § 4-104.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.417
Public offering statement --
Use of single disclosure document.
If a unit is offered for sale for which the delivery of a public offering statement or other disclosure document is required under the laws of any state or the United States, a single disclosure document conforming to the requirements of RCW 64.34.410 and 64.34.415 and conforming to any other requirement imposed under such laws, may be prepared and delivered in lieu of providing two or more disclosure documents.
[1990 c 166 § 11.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.418
Public offering statement --
Contract of sale -- Restriction on interest conveyed.
In the case of a sale of a unit where delivery of a public offering statement is required, a contract of sale may be executed, but no interest in that unit may be conveyed until (1) the declaration and survey map and plans which create the condominium in which that unit is located are recorded pursuant to RCW 64.34.200 and 64.34.232 and (2) the unit is substantially completed and available for occupancy, unless the declarant and purchaser have otherwise specifically agreed in writing as to the extent to which the unit will not be substantially completed and available for occupancy at the time of conveyance.
[1990 c 166 § 15.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.420
Purchaser's right to cancel.
(1) A person required to deliver a public offering statement pursuant to
RCW 64.34.405(3)
shall provide a purchaser of a unit with a copy of the public offering statement
and all material amendments thereto before conveyance of that unit. Unless a
purchaser is given the public offering statement more than seven days before
execution of a contract for the purchase of a unit, the purchaser, before
conveyance, shall have the right to cancel the contract within seven days after
first receiving the public offering statement and, if necessary to have seven
days to review the public offering statement and cancel the contract, to extend
the closing date for conveyance to a date not more than seven days after first
receiving the public offering statement. The purchaser shall have no right to
cancel the contract upon receipt of an amendment unless the purchaser would have
that right under generally applicable legal
principles.
(2) If a purchaser elects to cancel
a contract pursuant to subsection (1) of this section, the purchaser may do so
by hand-delivering notice thereof to the offeror or by mailing notice thereof by
prepaid United States mail to the offeror or to his or her agent for service of
process. Cancellation is without penalty, and all payments made by the purchaser
before cancellation shall be refunded promptly.
(3) If a person required to deliver a public offering statement pursuant to RCW
64.34.405(3)
fails to provide a purchaser to whom a unit is conveyed with that public
offering statement and all material amendments thereto as required by subsection
(1) of this section, the purchaser is entitled to receive from that person an
amount equal to the greater of (a) actual damages, or (b) ten percent of the
sales price of the unit for a willful failure by the declarant or three percent
of the sales price of the unit for any other failure. There shall be no
liability for failure to deliver any amendment unless such failure would have
entitled the purchaser under generally applicable legal principles to cancel the
contract for the purchase of the unit had the undisclosed information been
evident to the purchaser before the closing of the purchase.
[1989 c 43 § 4-106.]
(1) Except in the case of a sale where delivery of a public offering
statement is required, or unless exempt under RCW 64.34.400(2),
a unit owner shall furnish to a purchaser before execution of any contract for
sale of a unit, or otherwise before conveyance, a resale certificate, signed by
an officer or authorized agent of the association and based on the books and
records of the association and the actual knowledge of the person signing the
certificate, containing:
(a) A statement
disclosing any right of first refusal or other restraint on the free
alienability of the unit contained in the
declaration;
(b) A statement setting forth the
amount of the monthly common expense assessment and any unpaid common expense or
special assessment currently due and payable from the selling unit owner and a
statement of any special assessments that have been levied against the unit
which have not been paid even though not yet
due;
(c) A statement, which shall be current to
within forty-five days, of any common expenses or special assessments against
any unit in the condominium that are past due over thirty
days;
(d) A statement, which shall be current to
within forty-five days, of any obligation of the association which is past due
over thirty days;
(e) A statement of any other
fees payable by unit owners;
(f) A statement of
any anticipated repair or replacement cost in excess of five percent of the
annual budget of the association that has been approved by the board of
directors;
(g) A statement of the amount of any
reserves for repair or replacement and of any portions of those reserves
currently designated by the association for any specified
projects;
(h) The annual financial statement of
the association, including the audit report if it has been prepared, for the
year immediately preceding the current year;
(i)
A balance sheet and a revenue and expense statement of the association prepared
on an accrual basis, which shall be current to within one hundred twenty
days;
(j) The current operating budget of the
association;
(k) A statement of any unsatisfied
judgments against the association and the status of any pending suits or legal
proceedings in which the association is a plaintiff or
defendant;
(l) A statement describing any
insurance coverage provided for the benefit of unit
owners;
(m) A statement as to whether there are
any alterations or improvements to the unit or to the limited common elements
assigned thereto that violate any provision of the
declaration;
(n) A statement of the number of
units, if any, still owned by the declarant, whether the declarant has
transferred control of the association to the unit owners, and the date of such
transfer;
(o) A statement as to whether there
are any violations of the health or building codes with respect to the unit, the
limited common elements assigned thereto, or any other portion of the
condominium;
(p) A statement of the remaining
term of any leasehold estate affecting the condominium and the provisions
governing any extension or renewal thereof;
(q)
A copy of the declaration, the bylaws, the rules or regulations of the
association, and any other information reasonably requested by mortgagees of
prospective purchasers of units. Information requested generally by the federal
national mortgage association, the federal home loan bank board, the government
national mortgage association, the veterans administration and the department of
housing and urban development shall be deemed reasonable, provided such
information is reasonably available to the association;
and
(r) A statement, as required by RCW
64.35.210, as to whether the units or common elements of the condominium are
covered by a qualified warranty, and a history of claims under any such
warranty.
(2) The association, within ten days
after a request by a unit owner, and subject to payment of any fee imposed
pursuant to RCW 64.34.304(1)(l),
shall furnish a resale certificate signed by an officer or authorized agent of
the association and containing the information necessary to enable the unit
owner to comply with this section. For the purposes of this chapter, a
reasonable charge for the preparation of a resale certificate may not exceed one
hundred fifty dollars. The association may charge a unit owner a nominal fee for
updating a resale certificate within six months of the unit owner's request. The
unit owner shall also sign the certificate but the unit owner is not liable to
the purchaser for any erroneous information provided by the association and
included in the certificate unless and to the extent the unit owner had actual
knowledge thereof.
(3) A purchaser is not liable
for any unpaid assessment or fee against the unit as of the date of the
certificate greater than the amount set forth in the certificate prepared by the
association unless and to the extent such purchaser had actual knowledge
thereof. A unit owner is not liable to a purchaser for the failure or delay of
the association to provide the certificate in a timely manner, but the
purchaser's contract is voidable by the purchaser until the certificate has been
provided and for five days thereafter or until conveyance, whichever occurs
first.
[2004 c 201 § 4; 1992 c 220 § 23; 1990 c 166 § 12; 1989 c 43 § 4-107.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.430
Escrow of deposits.
Any deposit made in connection with the purchase or reservation of a unit from a person required to deliver a public offering statement pursuant to RCW 64.34.405(3) shall be placed in escrow and held in this state in an escrow or trust account designated solely for that purpose by a licensed title insurance company, an attorney, a real estate broker, an independent bonded escrow company, or an institution whose accounts are insured by a governmental agency or instrumentality until: (1) Delivered to the declarant at closing; (2) delivered to the declarant because of purchaser's default under a contract to purchase the unit; (3) refunded to the purchaser; or (4) delivered to a court in connection with the filing of an interpleader action.
[1992 c 220 § 24; 1989 c 43 § 4-108.]
(1) At the time of the first conveyance of each unit, every mortgage,
lien, or other encumbrance affecting that unit and any other unit or units or
real property, other than the percentage of undivided interest of that unit in
the common elements, shall be paid and satisfied of record, or the unit being
conveyed and its undivided interest in the common elements shall be released
therefrom by partial release duly recorded or the purchaser of that unit shall
receive title insurance from a licensed title insurance company against such
mortgage, lien or other encumbrance. This subsection does not apply to any real
property which a declarant has the right to
withdraw.
(2) Before conveying real property to
the association the declarant shall have that real property released from: (a)
All liens the foreclosure of which would deprive unit owners of any right of
access to or easement of support of their units; and (b) all other liens on that
real property unless the public offering statement describes certain real
property which may be conveyed subject to liens in specified amounts.
[1989 c 43 § 4-109.]
(1) A declarant of a conversion condominium, and any dealer who intends
to offer units in such a condominium, shall give each of the residential tenants
and any residential subtenant in possession of a portion of a conversion
condominium notice of the conversion and provide those persons with the public
offering statement no later than ninety days before the tenants and any
subtenant in possession are required to vacate. The notice must set forth
generally the rights of tenants and subtenants under this section and shall be
delivered pursuant to notice requirements set forth in RCW 59.12.040. No tenant
or subtenant may be required to vacate upon less than ninety days' notice,
except by reason of nonpayment of rent, waste, conduct that disturbs other
tenants' peaceful enjoyment of the premises, or act of unlawful detainer as
defined in RCW 59.12.030, and the terms of the tenancy may not be altered during
that period. Nothing in this subsection shall be deemed to waive or repeal RCW
59.18.200(2). Failure to give notice as required by this section is a defense to
an action for possession.
(2) For sixty days
after delivery or mailing of the notice described in subsection (1) of this
section, the person required to give the notice shall offer to convey each unit
or proposed unit occupied for residential use to the tenant who leases that
unit. If a tenant fails to purchase the unit during that sixty-day period, the
offeror may offer to dispose of an interest in that unit during the following
one hundred eighty days at a price or on terms more favorable to the offeree
than the price or terms offered to the tenant only if: (a) Such offeror, by
written notice mailed to the tenant's last known address, offers to sell an
interest in that unit at the more favorable price and terms, and (b) such tenant
fails to accept such offer in writing within ten days following the mailing of
the offer to the tenant. This subsection does not apply to any unit in a
conversion condominium if that unit will be restricted exclusively to
nonresidential use or the boundaries of the converted unit do not substantially
conform to the dimensions of the residential unit before
conversion.
(3) If a seller, in violation of
subsection (2) of this section, conveys a unit to a purchaser for value who has
no knowledge of the violation, recording of the deed conveying the unit
extinguishes any right a tenant may have to purchase that unit but does not
affect the right of a tenant to recover damages from the seller for a violation
of subsection (2) of this section.
(4) If a
notice of conversion specifies a date by which a unit or proposed unit must be
vacated and otherwise complies with the provisions of this chapter and chapter
59.18 RCW, the notice also constitutes a notice to vacate specified by that
statute.
(5) Nothing in this section permits
termination of a lease by a declarant in violation of its
terms.
(6) Notwithstanding RCW 64.34.050(1),
a city or county may by appropriate ordinance require with respect to any
conversion condominium within the jurisdiction of such city or county
that:
(a) In addition to the statement required
by RCW 64.34.415(1)(a),
the public offering statement shall contain a copy of the written inspection
report prepared by the appropriate department of such city or county, which
report shall list any violations of the housing code or other governmental
regulation, which code or regulation is applicable regardless of whether the
real property is owned as a condominium or in some other form of ownership; said
inspection shall be made within forty-five days of the declarant's written
request therefor and said report shall be issued within fourteen days of said
inspection being made. Such inspection may not be required with respect to any
building for which a final certificate of occupancy has been issued by the city
or county within the preceding twenty-four months; and any fee imposed for the
making of such inspection may not exceed the fee that would be imposed for the
making of such an inspection for a purpose other than complying with this
subsection (6)(a);
(b) Prior to the conveyance
of any residential unit within a conversion condominium, other than a conveyance
to a declarant or affiliate of a declarant: (i) All violations disclosed in the
inspection report provided for in (a) of this subsection, and not otherwise
waived by such city or county, shall be repaired, and (ii) a certification shall
be obtained from such city or county that such repairs have been made, which
certification shall be based on a reinspection to be made within seven days of
the declarant's written request therefor and which certification shall be issued
within seven days of said reinspection being
made;
(c) The repairs required to be made under
(b) of this subsection shall be warranted by the declarant against defects due
to workmanship or materials for a period of one year following the completion of
such repairs;
(d) Prior to the conveyance of any
residential unit within a conversion condominium, other than a conveyance to a
declarant or affiliate of a declarant: (i) The declarant shall establish and
maintain, during the one-year warranty period provided under (c) of this
subsection, an account containing a sum equal to ten percent of the actual cost
of making the repairs required under (b) of this subsection; (ii) during the
one-year warranty period, the funds in such account shall be used exclusively
for paying the actual cost of making repairs required, or for otherwise
satisfying claims made, under such warranty; (iii) following the expiration of
the one-year warranty period, any funds remaining in such account shall be
immediately disbursed to the declarant; and (iv) the declarant shall notify in
writing the association and such city or county as to the location of such
account and any disbursements therefrom; and
(e)
Relocation assistance not to exceed five hundred dollars per unit shall be paid
to tenants and subtenants who elect not to purchase a unit and who are in lawful
occupancy for residential purposes of a unit and whose monthly household income
from all sources, on the date of the notice described in subsection (1) of this
section, was less than an amount equal to eighty percent of (i) the monthly
median income for comparably sized households in the standard metropolitan
statistical area, as defined and established by the United States department of
housing and urban development, in which the condominium is located, or (ii) if
the condominium is not within a standard metropolitan statistical area, the
monthly median income for comparably sized households in the state of
Washington, as defined and determined by said department. The household size of
a unit shall be based on the number of persons actually in lawful occupancy of
the unit. The tenant or subtenant actually in lawful occupancy of the unit shall
be entitled to the relocation assistance. Relocation assistance shall be paid on
or before the date the tenant or subtenant vacates and shall be in addition to
any damage deposit or other compensation or refund to which the tenant is
otherwise entitled. Unpaid rent or other amounts owed by the tenant or subtenant
to the landlord may be offset against the relocation
assistance.
(7) Violations of any city or county
ordinance adopted as authorized by subsection (6) of this section shall give
rise to such remedies, penalties, and causes of action which may be lawfully
imposed by such city or county. Such violations shall not invalidate the
creation of the condominium or the conveyance of any interest therein.
[1992 c 220 § 25; 1990 c 166 § 13; 1989 c 43 § 4-110.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.443
Express warranties of
quality.
(1) Express warranties made by any seller to a purchaser of a unit, if
relied upon by the purchaser, are created as
follows:
(a) Any written affirmation of fact or
promise which relates to the unit, its use, or rights appurtenant thereto, area
improvements to the condominium that would directly benefit the unit, or the
right to use or have the benefit of facilities not located in the condominium
creates an express warranty that the unit and related rights and uses will
conform to the affirmation or promise;
(b) Any
model or written description of the physical characteristics of the condominium
at the time the purchase agreement is executed, including plans and
specifications of or for improvements, creates an express warranty that the
condominium will conform to the model or description except pursuant to *RCW 64.34.410(1)(v);
(c) Any written description of the quantity or extent of the real property
comprising the condominium, including plats or surveys, creates an express
warranty that the condominium will conform to the description, subject to
customary tolerances; and
(d) A written
provision that a buyer may put a unit only to a specified use is an express
warranty that the specified use is lawful.
(2)
Neither formal words, such as "warranty" or "guarantee," nor a specific
intention to make a warranty are necessary to create an express warranty of
quality, but a statement purporting to be merely an opinion or commendation of
the real estate or its value does not create a warranty. A purchaser may not
rely on any representation or express warranty unless it is contained in the
public offering statement or made in writing signed by the declarant or
declarant's agent identified in the public offering
statement.
(3) Any conveyance of a unit
transfers to the purchaser all express warranties of quality made by previous
sellers.
[1989 c 428 § 2.]
NOTES:
*Reviser's note: RCW 64.34.410 was amended by 1997 c 400 § 1, changing subsection (1)(v) to subsection (1)(w).
Captions -- 1989 c 428: "Section captions as used in this act do not constitute any part of the law." [1989 c 428 § 6.]
Effective date -- 1989 c 428: "*Sections 1 through 4 of this act shall take effect July 1, 1990." [1989 c 428 § 7.]
*Reviser's note: Sections 1, 3, and 4 of this act were vetoed by the governor.
RCW 64.34.445
Implied warranties of
quality -- Breach.
(1) A declarant and any dealer warrants that a unit will be in at least
as good condition at the earlier of the time of the conveyance or delivery of
possession as it was at the time of contracting, reasonable wear and tear and
damage by casualty or condemnation excepted.
(2)
A declarant and any dealer impliedly warrants that a unit and the common
elements in the condominium are suitable for the ordinary uses of real estate of
its type and that any improvements made or contracted for by such declarant or
dealer will be:
(a) Free from defective
materials;
(b) Constructed in accordance with
sound engineering and construction standards;
(c) Constructed in a workmanlike manner; and
(d)
Constructed in compliance with all laws then applicable to such
improvements.
(3) A declarant and any dealer
warrants to a purchaser of a unit that may be used for residential use that an
existing use, continuation of which is contemplated by the parties, does not
violate applicable law at the earlier of the time of conveyance or delivery of
possession.
(4) Warranties imposed by this
section may be excluded or modified as specified in RCW 64.34.450.
(5) For purposes of this section, improvements made or contracted for by an
affiliate of a declarant, as defined in RCW 64.34.020(1),
are made or contracted for by the declarant.
(6)
Any conveyance of a unit transfers to the purchaser all of the declarant's
implied warranties of quality.
(7) In a judicial
proceeding for breach of any of the obligations arising under this section, the
plaintiff must show that the alleged breach has adversely affected or will
adversely affect the performance of that portion of the unit or common elements
alleged to be in breach. As used in this subsection, an "adverse effect" must be
more than technical and must be significant to a reasonable person. To establish
an adverse effect, the person alleging the breach is not required to prove that
the breach renders the unit or common element uninhabitable or unfit for its
intended purpose.
(8) Proof of breach of any
obligation arising under this section is not proof of damages. Damages awarded
for a breach of an obligation arising under this section are the cost of
repairs. However, if it is established that the cost of such repairs is clearly
disproportionate to the loss in market value caused by the breach, then damages
shall be limited to the loss in market value.
[2004 c 201 § 5; 1992 c 220 § 26; 1989 c 43 § 4-112.]
NOTES:
Application -- 2004 c 201 §§ 5 and 6: "Sections 5 and 6 of this act apply only to condominiums created by declarations recorded on or after July 1, 2004." [2004 c 201 § 12.]
RCW 64.34.450
Implied warranties of
quality -- Exclusion -- Modification -- Disclaimer -- Express written warranty.
(1) For units intended for nonresidential use, implied warranties of
quality:
(a) May be excluded or modified by
written agreement of the parties; and
(b) Are
excluded by written expression of disclaimer, such as "as is," "with all
faults," or other language which in common understanding calls the buyer's
attention to the exclusion of warranties.
(2)
For units intended for residential use, no disclaimer of implied warranties of
quality is effective, except that a declarant or dealer may disclaim liability
in writing, in type that is bold faced, capitalized, underlined, or otherwise
set out from surrounding material so as to be conspicuous, and separately signed
by the purchaser, for a specified defect or specified failure to comply with
applicable law, if: (a) The declarant or dealer knows or has reason to know that
the specific defect or failure exists at the time of disclosure; (b) the
disclaimer specifically describes the defect or failure; and (c) the disclaimer
includes a statement as to the effect of the defect or
failure.
(3) A declarant or dealer may offer an
express written warranty of quality only if the express written warranty does
not reduce protections provided to the purchaser by the implied warranty set
forth in RCW 64.34.445.
[2004 c 201 § 6; 1989 c 43 § 4-113.]
NOTES:
Application -- 2004 c 201 §§ 5 and 6: See note following RCW 64.34.445.
RCW 64.34.452
Warranties of quality --
Breach -- Actions for construction defect claims.
(1) A judicial proceeding for breach of any obligations arising under RCW
64.34.443,
64.34.445,
and 64.34.450
must be commenced within four years after the cause of action accrues: PROVIDED,
That the period for commencing an action for a breach accruing pursuant to
subsection (2)(b) of this section shall not expire prior to one year after
termination of the period of declarant control, if any, under RCW 64.34.308(4).
Such periods may not be reduced by either oral or written agreement, or through
the use of contractual claims or notice procedures that require the filing or
service of any claim or notice prior to the expiration of the period specified
in this section.
(2) Subject to subsection (3)
of this section, a cause of action or [for] breach of warranty of quality,
regardless of the purchaser's lack of knowledge of the breach,
accrues:
(a) As to a unit, the date the
purchaser to whom the warranty is first made enters into possession if a
possessory interest was conveyed or the date of acceptance of the instrument of
conveyance if a nonpossessory interest was conveyed;
and
(b) As to each common element, at the latest
of (i) the date the first unit in the condominium was conveyed to a bona fide
purchaser, (ii) the date the common element was completed, or (iii) the date the
common element was added to the condominium.
(3)
If a warranty of quality explicitly extends to future performance or duration of
any improvement or component of the condominium, the cause of action accrues at
the time the breach is discovered or at the end of the period for which the
warranty explicitly extends, whichever is
earlier.
(4) If a written notice of claim is
served under RCW 64.50.020 within the time prescribed for the filing of an
action under this chapter, the statutes of limitation in this chapter and any
applicable statutes of repose for construction-related claims are tolled until
sixty days after the period of time during which the filing of an action is
barred under RCW 64.50.020.
(5) Nothing in this
section affects the time for filing a claim under chapter 64.35 RCW.
[2004 c 201 § 7; 2002 c 323 § 11; 1990 c 166 § 14.]
NOTES:
Effective date -- 1990 c 166: See note following RCW 64.34.020.
RCW 64.34.455
Effect of violations on
rights of action -- Attorney's fees.
If a declarant or any other person subject to this chapter fails to comply with any provision hereof or any provision of the declaration or bylaws, any person or class of persons adversely affected by the failure to comply has a claim for appropriate relief. The court, in an appropriate case, may award reasonable attorney's fees to the prevailing party.
[1989 c 43 § 4-115.]
If any improvement contemplated in a condominium is labeled "NEED NOT BE BUILT" on a survey map or plan, or is to be located within a portion of the condominium with respect to which the declarant has reserved a development right, no promotional material may be displayed or delivered to prospective purchasers which describes or portrays that improvement unless the description or portrayal of the improvement in the promotional material is conspicuously labeled or identified as "NEED NOT BE BUILT."
[1989 c 43 § 4-116.]
(1) The declarant shall complete all improvements labeled "MUST BE BUILT"
on survey maps or plans prepared pursuant to RCW 64.34.232.
(2) The declarant is subject to liability for the prompt repair and restoration,
to a condition compatible with the remainder of the condominium, of any portion
of the condominium damaged by the exercise of rights reserved pursuant to or
created by RCW 64.34.236,
64.34.240,
64.34.244,
64.34.248,
64.34.256,
and 64.34.260.
[1989 c 43 § 4-117.]
This chapter shall be known and may be cited as the Washington condominium act or the condominium act.
[1989 c 43 § 1-101.]
Section captions as used in this chapter do not constitute any part of the law.
[1989 c 43 § 4-119.]
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
[1989 c 43 § 4-120.]
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
[2004 c 201 § 13.]
This act shall take effect July 1, 1990.
[1989 c 43 § 4-124.]
Sections 1 through 13 of this act take effect July 1, 2004.
[2004 c 201 § 14.]
This chapter being a general act intended as a unified coverage of its subject matter, no part of it shall be construed to be impliedly repealed by subsequent legislation if that construction can reasonably be avoided.
[1989 c 43 § 1-109.]
This chapter shall be applied and construed so as to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.
[1989 c 43 § 1-110.]