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Committee considers bill giving sellers appraisal and short cancellation rights in 'solicited' off-market home sales
Summary
Substitute House Bill 1081 would grant owners of solicited real estate—the off-market sellers approached directly by buyers—the right to have an appraisal paid for by the buyer, to choose the appraiser, and short cancellation windows; supporters say it protects vulnerable sellers and opponents raised implementation questions; no vote was taken.
The Senate Business, Financial Services, Gaming & Trade Committee held a public hearing Wednesday on substitute House Bill 1081, which would create appraisal and short-cancellation rights for owners approached in off-market solicitations to buy private property.
Committee staff briefed senators that the bill applies to transactions in which a buyer, or someone representing a buyer, actively solicits an owner of real property that is not publicly listed for sale. "Owners of real property that enter into a purchase contract with a buyer or someone representing a buyer that actively solicits the real estate…are provided the right of an appraisal," staff said. Under the bill text, when an owner exercises the right to an appraisal, the owner may select a licensed appraiser at the buyer’s expense; the appraisal must be ordered within three days after execution of the purchase contract. After receiving the appraisal, the owner has four days to cancel the contract without penalty. Owners who decline to take an appraisal have a ten-day cancellation window.
Substitute HB 1081 does not apply when a real estate broker is involved and does not specifically reference foreclosure transactions, committee staff said. Violations of the buyer’s obligations under the bill would be treated as violations of the Washington Consumer Protection Act and enforceable as such.
Representative Brandy Donaghy (40th Legislative District), who described herself as the bill’s sponsor, said the bill is aimed at predatory purchasers who approach homeowners—often elderly or otherwise less experienced in real-estate transactions—and seek to buy homes at steep discounts. "This bill is designed to ensure that when that is done, it's not done in a predatory manner," Donaghy told the committee. She said the bill is intended to protect sellers who are not represented by brokers and who might be targeted by companies that buy homes to flip.
Senators asked clarifying questions about scope and mechanics. Senator McKeown and others asked whether the bill applies to unsolicited phone calls and to buyers making direct offers; staff confirmed it applies when a buyer solicits the owner. Senator Dozier asked who pays for the appraisal; staff and the sponsor confirmed the buyer pays. Senator Wilson asked whether the owner or buyer retains the appraisal product; staff said the owner orders the appraisal and would receive it because the owner selects the appraiser.
Committee staff noted the bill passed the House by a vote of 56 to 39. No committee vote was recorded at the hearing.
Ending note: supporters framed the bill as a narrow consumer-protection measure limited to off-market solicitations and not changing broker-regulated transactions; committee members requested clarifying language and asked staff to confirm exclusions such as foreclosure sales.
