Real estate news

Home inspectors regulated — Public protected

Requirements for the licensing of home inspectors will begin in July 1, 2009. Governor Gregoire signed Senate Bill 6606 into law requiring that all home inspectors be licensed in Washington. The bill also:

  • defines home inspector duties to include inspection of roofs and basements, as well as heating, plumbing, and electrical systems.
  • requires inspectors to have 120 hours of classroom education, 40 hours of field training, and passage of a written exam.
  • creates a licensing commission to establish professional conduct standards.
  • requires real estate agents to recommend more than one inspector to clients to prevent hasty inspections and reduce preferential treatment to one inspector.

The home inspector program will be a part of the Real Estate Unit within the Department of Licensing Business and Professions Division.

Electronic recording established

House Bill 2459 was presented and signed by Governor Gregoire on March 18. The bill:

  • adopts the Uniform Real Property Electronic Recording Act, establishing the definitions, standards, procedures, and authority needed by county auditors related to the implementation of a system for the recording, storage, and transmission of documents existing in electronic form.
  • authorizes the official recording of an electronic document and the acceptance of a legally required signature, notarization, verification, or acknowledgment when received electronically in accordance with specified requirements.
  • requires the Secretary of State to create an “E-Recording Standards Commission” to review electronic recording standards and to make recommendations regarding the implementation of standardized rules for such recording.

Real estate license law reformed

House Bill 2778 (with companion bill SB 6498) was approved overwhelmingly by the House and Senate and was signed by Governor Gregoire, March 14. This bill modifies RCW 18.85 and:

  • establishes license definitions for real estate brokers, managing brokers, designated brokers, and firms; replacing the existing licenses for real estate salespersons and associate brokers.
  • adds several exemptions to real estate licensing.
  • increases licensing and educational requirements for real estate licensees.
  • increases supervision and oversight over new licensees by more experienced licensees.
  • makes various grammatical and clarifying changes.

The bill will take affect in June, 2010. Delay in implementation is due to many rule changes.

Bill clarifies title insurance

Senate Bill 6847 creates new standards applying to real estate licensees for the review of title insurance rates and prohibits illegal incentives and gratuities in the title insurance business. The bill was signed into law March 21 by Governor Gregoire.

Governor Gregoire appoints a new real estate commissioner

We would like to welcome our newest real estate commissioner, Dan R. Murphy. Governor Christine Gregoire has selected Seattle real estate licensee Mr. Murphy to serve on the Washington Real Estate Commission as of August 27, 2007. His term will expire on August 14, 2013.

Dan Murphy has been with the real estate industry since 1989. In 1996 he began working for Windermere Real Estate Fauntleroy, Inc. in Seattle in real estate sales and is currently an associate broker. His management background and extensive volunteer leadership in the local, state, and national REALTOR organizations has made him well versed in real estate issues, licensing laws, and government regulations relating to real estate matters.

Earnest money

Routine audits of broker transaction files still indicate that a large number of firms are not complying with the delivery and/or deposit requirements regarding earnest money.

All earnest money funds must be deposited into the brokers trust bank account not later than the next banking day unless the purchase and sale agreement states the check is to be held for a specific period of time or the occurrence of a specific event. The delivery of the funds to escrow is the broker's responsibility.

We continue to receive complaints from sellers when the transaction fails that the funds were not deposited or never delivered to the escrow company. Not only is the untimely delivery of earnest money a licensing problem, but also not providing this information to the seller that the earnest money was never collected or delivered can be considered failure to disclose.