New Condominium Law / Common Interest Ownership Law In Washington State
Posted: May 31, 2018
By: Washington State Business and Real Estate Law Lawyer William O. Kessler
The newly-passed Washington Uniform Common Interest Ownership Act (WUCIOA) will take effect on July 1 of this year. The WUCIOA is comprehensive and regulates the formation, management and termination of common interest communities (CICs). Covered communities include condominiums, plat communities, and cooperatives.
The WUCIOA will apply to all CICs created after July 1, 2018 and allow for current communities to adopt its provisions. There is one important exception. Section 326 will control the budget process and subsequent ratification and will apply to all CICs regardless of the date of creation. This section will require specific content to be contained in the proposed budgets and summaries. This includes, but is not limited to, projected income, amount of assessments per unit, common expenses, and whether or not the association has conducted a reserve study.
Management and Meetings
The WUCIOA requires an association to be organized prior to the sale of any units and places a number of duties upon the association. The association must be organized as a for-profit corporation, nonprofit corporation, or a limited liability company (LLC). A board of directors must be created from community members and the WUCIOA places broad duties on the board that include corporate conflict of interest rules. Yearly meetings will be required in which notice must be provided to members and meetings must allow for an opportunity to comment. The president, majority of the board, or 20 percent or more of unit owners may also call a special meeting.
Information to Purchasers
The WUCIOA requires public offering statements, once only required for the sale of condominiums, to purchasers in all types of CICs. Once purchasers have received a public offering statement, they are given 7 days to cancel a sale. Warranties within the WUCIOA are restricted to condominiums only and do not apply to other CICs. The statute of limitations is 4 years and attorney’s fees may be awarded.
Please call William O. (Bill) Kessler with any questions.
Beresford Booth PLLC (425.776.4100), www.beresfordlaw.com.
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