Washington State Condo Law 6215

Over the past 5 years I have always consoled my clients to inspect their HOA's. 

Most buyers, particuliarly first time buyers have no idea of what a HOA is , let alone the power that the HOA holds over the individual owner. Fortunately most of the abuses in California, Az. and Florida have already been exposed and dealt with. Still mismanagement can be costly and potential case an owner to lose their home.

 In March the Governor sign a new law regarding reserve studies for condominiums. The law falls short of what many industry professionals sought, including mandatory reserve funding and studies, but is a step in the right direction. The new law also is silent on maintenance plans, as required in neighboring Oregon and California.

The law, which becomes effective June 12, 2008:

    * 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.

    * Reserve studies must include detailed information on projected expenditures and current reserve account information and must be conducted 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 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.  

 Ultimately this forces the owners association to plan for maintenance issues and set aside reserves which should help prevent unnecessary financial surprises. Companies like Pacific Crest Inspections can help associations with the creations of the reserve study.

 

Rick Bunzel, CRI
Pacific Crest Inspections

NPSAR Affiliate of the Year 2006-2007
WWW.PacCrestInspections.com
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