This is boring but important:
HB 2791 (RCW 61.34) is a new Consumer Protection Law for the state of Washington. It is ffective June 12, and its goal is to keep scam artists from stealing the homes of sellers in dire straits, otherwise known as Distressed Home Sellers. The scam is called Equity Stripping. And it is despicable.
There are some really sleazy predators out there. And this law includes some really strict punishments.
But... Like so many new laws, this has some unforeseen consequences and bugs to work out.
Sellers: According to the definitions, you may be a Distressed Home Seller, and not even realize it. If you discover your are a Distressed Seller, we have to decide whether I should act as a Distressed Property Seller Consultant or simply as your Agent. But if you are not a Distressed Seller, things work just like they always have, plus you will be asked to warrant that you are not "Distressed".
(This law is intended to protect "Owner Occupied" primary residences. one of the glitches I think this law has is that it only includes condo owners when their unit it in a building with 4 or fewer units. What about the bigger complexes? What abot co-ops? )
Buyers: Yes, this impacts you too! You may become a Distressed Home Seller "Consultant", without ever planning on it. There are 9 actions which will make you a consultant, the most common is if you Close on a property within 20 days of a scheduled Foreclosure Auction. We will discuss how this impacts your choices, and if you are even willing to consider these kinds of properties.
The biggest difference for Buyers I have worked with in the past: We need to execute a Buyer's Agency contract to work together. It is very similar to the contracts I use with Sellers, but describes, among other things, which properties you want me to show to you.
Each brokerage must choose to offer "Consultant" services, or Not. My brokerage is saying "Yes, Of course we will." We want to help our clients however we can. So I am taking training to make sure I understand what the new law requires. And my broker is preparing a service contract to streamline this process and make sure you understand exactly the service you are being promised, as well as limitations.
There are some great things about this law. It gives sellers in tough situations protections against creeps who try to steal their homes. And hopefully the "worst" is just a bit more paperwork for you, and a bit more paperwork for me. Keep your fingers crossed! If you know people in this kind of situation, please make sure they are hiring agents who are educated and informed about this law.
NOTE: There are a total of 19 states with these kinds of laws. Washington State is the only one that didn't remember to exempt real estate brokerages and these types of normal services. Of course, they remembered to exempt the services of the attorneys, mortgage professionals, title companies etc. That is the type of fix we are going to work on. OK, minor rant done.
I hope this level of information doesn't make your eyes fall out or make your head spin in circles. I have had some time to absorb how this will impact my clients, and take some classes, and it is starting to feel like just another layer of data. Like any other major change to real estate laws.
You can always call me to ask a question about this issue, or maybe you just want to ask what your neighbor's home sold for. I work with Buyers, Sellers and Investors in the South Sound around Olympia and Shelton. This includes those communities with soldiers from Ft Lewis & McChord AFB like so much. Cal me if you are PCSing or relocating to the area!
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