Seattle Housing Buzz

Last week the state legislature overwhelming approved bill 2778 reforming the licensure of real estate agents. The bill now heads to the governor’s desk for signing. The bill, which strengthens consumer protections and professional accountability, received widespread support within the industry.

The core reforms include:

• Elimination of the real estate salesperson classification, leaving broker, managing broker and designated broker classifications.
• Amends the licensing and educational requirements for brokers to 90 hours. Essentially, the “new” broker designation replaces the “salesperson” classification which only required 60 clock-hours of education.
• Implements greater oversight of licensees.
• Requires a background check by the Washington State Patrol.

Once signed by the governor the bill will become effective July 1, 2010.

Personally, I’m all for this bill even though it should be tougher. There is a definite need to increase the educational and licensing requirements of real estate professionals in Washington State. The changes will help to assure consumers that individuals practicing real estate are qualified, above board, full-time business persons. It’ll eliminate the plethora of agents who aren’t committed to improving their own skill sets or who treat real estate as a hobby or second job.

Tags: Housing Legislation, Real Estate Legislation, Real Estate Licensing, Seattle Real Estate

1. Condo Conversion Bill, Senate Bill 6411

Per the Senate’s listserv notification I received, the February 5th Public Meeting on the bill was cancelled. It is not currently on the agenda for this coming week.

2. Reserve Accounts & Studies for Condominiums, House Subsitute Bill 2541, Senate Bill 6215

Authorizes condominium associations to conduct reserve studies and to establish a reserve fund. The bills have passed their respective houses and now move to the opposite house for consideration. A public hearing of the Senate’s version will be heard in the House on February 20th while a public hearing of the House’s version will be heard in the Senate on February 21st.

House Subsitute version summary:

• Requires a residential condominium association, unless doing so would impose an unreasonable hardship, to (1) prepare an initial reserve study based upon a visual site inspection conducted by a reserve study professional; (2) update the study annually; and (3) arrange for a visual site inspection every three years by a reserve study professional.
• Encourages, but does not require, a residential condominium association to establish a reserve account, supplemental to the association’s annual operating budget, to fund major maintenance, repair, and replacement of common elements.
• Requires a condominium public offering statement or resale certificate to include (1) a copy of the current reserve study, or (2) a disclosure to the potential buyer stating that the association does not have a reserve study.

Senate version summary:

• Condominium associations (association) are encouraged to establish a reserve fund account to pay for major repairs or replacement of common elements. An association may withdraw funds from the reserve account for unforeseen expenses, as long as notice is given to unit owners, and a repayment schedule is set up.
• Associations must conduct and update reserve studies annually. The initial study and the study done each third-year thereafter must be conducted by a reserve study professional. Reserve studies must include detailed information on projected expenditures and current reserve account information.
• If an association has not conducted a reserve study prepared by a professional in the past three years, one may be demanded if 20 percent or more of the unit owners agree. An association may refuse the demand if conducting the study would impose an unreasonable economic hardship on the association. An unreasonable hardship exists if preparing the study would cost more than 10 percent of the association’s annual budget.
• Public offering statements and seller’s disclosures must include either: (1) a copy of the association’s current reserve study; or (2) a disclosure informing the buyer that there is no current reserve study and the possible risks that the buyer faces because of the lack of a current study.

3. Seller’s Disclosure Statement Revision, House Bill 2894

The bill amends the Seller’s Disclosure Statement, Form 17, to include wood burning appliances. The bill passed the House and has moved to the Senate. A public hearing as been scheduled in the Senate on February 22nd.

Tags: Condo Conversion, Condo Reserve Study, Housing Legislation, Real Estate Legislation, Seller Disclosure Form