For many years cities have asked the state to reform condominium insurance laws to help bolster the condominium market. This year, HB 1403, sponsored by Rep. Jamila Taylor (D–Federal Way) has passed both chambers and awaits Govenor Ferguson’s signature.
The primary mechanism in the bill that aims to support this form of development is an ability for a condo developer to offer an express warranty of quality workmanship and insurance coverage, rather than being subjected to the existing implied warranty statutes that are seen as creating too much liability to cost-effectively insure.
Condo reform bill focuses on construction defects issue
January 24, 2025
Although the Legislature has passed several amendments to condominium statutes over the last few years, this bill addresses what many think is the key barrier to getting more condominiums built.
HB 1403, sponsored by Rep. Jamila Taylor (D–Federal Way), targets the issue around defects in condominium construction and how the current law has impacted insurance coverage of these building types. The bill does the following:
- Requires the seller of a new condo to provide a warranty to the buyer that the condo and common areas are:
- Free from defective materials
- Constructed in accordance with approved plans, specifications, and building codes
- Constructed in a workmanlike manner defined under a reasonably prudent licensed contractor standard
- Allows an exception for sellers that provide an express warranty of quality and insurance coverage that meets the requirements outlined in the bill and the condo is:
- An ADU
- Located in a new building or a condo conversion with 12 or fewer units and under two stories, or under three stories if one story is used for parking or commercial use
- Changes how an action can be brought to challenge construction defects
Many cities would like to see more condos built and appreciate the continued work to address barriers to construction.
Date to remember
HB 1403 will be heard in the House Civil Rights & Judiciary Committee on Wednesday, January 29 at 8 am.