[Legislativecommittee1] HB1081 and HB1075

Thu Dec 19 11:51:42 PST 2024

>From an escrow standpoint it seems like this bill would put the burden on us to confirm several things:

  1.
Is the transaction the result of a solicited offer that meets the criteria of the legislation?
  2.
Are the specific items included in the contract in at least 10 pt font?
  3.
 Did the seller affirmatively acknowledge the items?
  4.
 Were the timelines for requesting an appraisal or waiving the appraisal right met?
  5.
 Were the timelines for cancellation without penalty or further obligation met?

Most of these (other than maybe the font size) would be reasonably easy to confirm, we do this regularly in reading contracts to be sure that requirements have been met and/or waived.  I think that if the cancellation notice met the stated requirements in the contract there would be no need to interplead.  Interpleading would come into play if the contract was rescinded outside of the stated timeline and then it would be handled as usual - mutual agreement or we would have to interplead.
What concerns me is that we will have to determine if the sale is the result of a solicited offer or not in order to even know that these rules apply.  Sometimes it's obvious, but not always and we all know how confusing these type of nuances can be for the general consumer.

________________________________
From: Jp Kissling <jpkissling at fitico.com>
Sent: Thursday, December 19, 2024 11:02 AM
To: Maureen Pfaff <maureen at olypentitle.com>
Cc: '1 WLTA Legislative Committee' <legislativecommittee1 at washingtonlandtitle.com>
Subject: RE: HB1081 and HB1075

they have the right to cancel the contract within 4 days of receiving the appraisal without penalty or further obligation.

From: Jp Kissling
Sent: Thursday, December 19, 2024 10:01 AM
To: Maureen Pfaff <maureen at olypentitle.com>
Cc: '1 WLTA Legislative Committee' <legislativecommittee1 at washingtonlandtitle.com>
Subject: RE: HB1081 and HB1075

I feel we also need to have some clarification on the earnest money and how/ if,  it will affect our ability to interplead funds RCW 64.04.220.

From: Legislativecommittee1 <legislativecommittee1-bounces at washingtonlandtitle.com<mailto:legislativecommittee1-bounces at washingtonlandtitle.com>> On Behalf Of Maureen Pfaff
Sent: Thursday, December 19, 2024 9:43 AM
To: legislativecommittee1 at washingtonlandtitle.com<mailto:legislativecommittee1 at washingtonlandtitle.com>
Subject: [Legislativecommittee1] HB1081 and HB1075

We still need a review of HB 1075 if anyone has a few minutes to take a look at it.

I reviewed HB 1081 but have a couple of questions for the committee.  This bill would provide additional protections to the seller in a transaction where the buyer actively solicited the purchase of a property that is not currently being offered for sale and where the Seller is not represented by a licensed Realtor.  It would require that the contract specifically notes that the seller has a right to have an appraisal done by an appraiser of their choosing and paid for by the buyer and that they have the right to cancel the contract within 4 days of receiving the appraisal without penalty or further obligation. For owners who do not choose to have an appraisal done they have the right to cancel the contract without penalty or further obligation within 10 business days after execution. It also adds specific requirements for how these rights will be shown in the contract and that the seller must affirmatively acknowledge them.  Would it fall on us to confirm that the contract in a transaction we close meets these requirements?  If it doesn't and we close and insure the transaction would we be open to a claim down the road?

Maureen

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Maureen Pfaff, President and CEO

Ph: (360) 457-4451 | Fax: (844) 513-2400

403 S Peabody St, Port Angeles, WA 98362

maureen at olypentitle.com<mailto:maureen at olypentitle.com>

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