SB 5334, the only remaining condo liability reform bill, passed the House. The bill was technically amended in its House policy committee; but the key policy provisions remain intact. SB 5334 now goes back to the Senate for concurrence with the amendments.
The bill changes the implied warranties for the construction of a condominium. The building must be:
- Free from defective materials (current law);
- Constructed in accordance with applicable building codes, generally accepted in the state of Washington at the time of construction; and
- Constructed in a workmanlike manner (current law).
To establish an alleged breach of warranty has an adverse effect on performance, the purchaser must prove the alleged breach:
- Is more than technical;
- Is significant to a reasonable person; and
- Has caused or will cause physical damage to the unit or common elements; has materially impaired the performance of mechanical, electrical, plumbing, elevator, or similar building equipment; or presents an actual unreasonable safety risk to the occupants of the condominium.
SB 5334 also provides immunity from liability to the members of the condominium association board.
This is the proposal AWC has been working on with the realtors, condo developers, and legislators.