Welcome to Friday, let’s sweep! This week is Episode #10 of my Double Down podcast – doubling down on a “legal bite” and an “idea worth spreading.” This month the focus takes us back to summer for a minute – to the July 1st 2018 effective date of the new Washington Uniform Common Interest Ownership Act (governing common interest communities, or “CIC’s”), and also we discuss the ins + outs of our houseboat (floating home) communities. And if you make it to the end of Episode #10, you’ll enjoy a good story on “fabled service”…an excellent reminder that our service becomes our brand!
This week I attended the 2018-2019 Core Curriculum [Current Issues in Washington Residential Real Estate] taught by Demco Law Firm in wrapping up my license renewal. The content was timely in that the first teaching point within our CORE curriculum mirrors the CIC “legal bite” within this podcast. After reading the NWMLS legal bulletins, reading Demco’s legal bulletin, and recording a podcast…it wasn’t until attending CORE that I had the “ah-ha” as to why Washington State went to such great lengths to add this new “CIC” law – as of July 1st 2018.
Here is the “why” I stumbled upon = Washington State’s goal with this new Act is to fold single family and townhome communities into a framework of legislative protections that we have already become familiar with when dealing with condominiums. The new law broadly covers new CIC’s with shared expenses (including cooperatives, plat communities, and condominiums) as well as any pre-existing community that may choose to opt-in to the new law.
Ok, now for the WHAT before you tune into our podcast conversation…(Note: The new CIC Act does not apply if there are 12 units or less AND average annual assessments of $300 or less per unit.)
1. Public Offering Statements (POS’s) or resale certificates (RC’s) will be required for the sale of all new or resale homes within CIC’s, including covenanted communities with shared expenses – not just condominiums. *Similar to current condominium law, buyers of a CIC unit will have a right of rescission after receipt of POS (7 days) or RC (5 days).
2. It will be relatively easy for many existing communities to become a CIC subject to the new law. With some exceptions (such as for existing condominiums) if after proper delivery of notice 30% of unit owners participate in the vote and 67% of those who vote approve, the new law applies.
3. The new law will enable communities to impose rental caps at a 67% approval threshold as opposed to the more stringent 90/100% approval threshold under the 1990 Condo Act..
4. Condominiums under the new law (but not other CIC’s) will still be subject to extensive warranties of quality as have been required under the 1990 Condo Act.
5. Sellers and their brokers will need to disclosure whether or not a marketed property is a CIC subject to the new law. Brokers are advised to check title when taking a listing (even on an older property) to see if a property may be subject to the new law.
*Ps, Being that license renewal is top of mind for me today, a good time to point out the CORE curriculum I referred to above is THE 3 clock hour class REQUIRED every time you renew your license. **This is different from your REALTORS membership requirement in taking Ethics. ***Ethics can be used however towards your elective clock hours. ****NOTE: you are setting out on your FIRST license renewal – be sure to connect with your manger to be sure you are tracking in the right direction + requirements.
Hope you enjoy the podcast conversation! Next up in November I’ll have Madison Park broker, Catherine Adams mic’s up to chat about this changed(ing) local market! We’ll tap into her infinite wisdom.
#alwayslearning #doubledown #innovation #play #wearewindermere
Laura Smith, Co-owner | Windermere Real Estate Co.