Senate Housing Committee hears testimony on HOA resale-certificate and inquiry bills

The Senate Housing Committee on Feb. 4 took testimony on two House bills drafted to bolster consumer protections for owners in common-interest communities.

Engrossed substitute House Bill 1,500 would revise resale-certificate requirements under the Washington Uniform Common Interest Ownership Act (WICOIA) and the Washington Condominium Act. Staff said the bill would require a resale certificate to include the most current reserve study, the most recent financial audit, and all board-approved policies, procedures and resolutions currently in effect; it would permit a reasonable preparation charge limited to direct out-of-pocket costs and allow a $100 rush service fee to produce a certificate within 72 hours. The bill also would clarify purchaser liability limits for association-provided errors and allow an owner or authorized agent to sue over timeliness, accuracy, completeness, and fee issues when the certificate is not provided as required.

Representative Julie Reed, prime sponsor, framed the bill as a common-sense consumer-protection measure to address delays and information asymmetry in real-estate transactions involving HOAs. "If you're a potential buyer and you receive a resale certificate that reveals information that you find very concerning, the changes in this bill would allow you to walk away," she said, describing a buyer's right to rescind after seeing new financial or alteration information.

A pro panel including Bill Clark of Washington Realtors urged clarifying the rescission window to "five business days" and adding seller-disclosure obligations about compliance with CC&Rs. HOA member Steve Horvath (HOA United) asked that changes be limited, noting prior compromise language. Association managers and attorneys from the Washington State Community Associations Institute (Mikayla Carnes and Theresa Torgerson) supported standardizing information in resale certificates but warned that restricting third-party platforms and processing tools could slow delivery and harm buyers; they asked for language that preserves efficient delivery methods while ensuring document accuracy and timeliness.

On EHB 1501, staff briefed that the bill permits unit owners or their authorized agents to send written inquiries by certified mail and requires associations to provide a factual explanation within 30 days or to notify the inquirer that additional time is reasonably necessary. The prevailing party in any resulting action may recover reasonable attorney fees. Representative Reed said the bill is intended to create a formal, enforceable pathway to get responses from boards that are unresponsive; she also acknowledged associations can adopt reasonable rules limiting frequency and manner of inquiries.

WSCAI witnesses reiterated concerns about volunteer boards and management capacity, asking for clearer guidance on "substantive responses," alignment with recent statutes, and reasonable limits to avoid overburdening small, volunteer-run associations.

What happens next: committee members asked for potential clarifications and indicated more tweaks could be considered before executive action; both bills remained under consideration at the end of the hearing.