| Q. | What type of statutory protection does the Washington Condominium Act provide Homeowners Associations against defective construction? |
| A. | Under the Washington Condominium Act, RCW 64.34, et seq., a developer (Declarant) provides implied warranties of quality. These implied warranties of quality are stated in RCW 64.34.445(2). http://apps.leg.wa.gov/RCW/default.aspx?cite=64.34.445
RCW 64.34.450(2) addresses modification of and disclaimer of the implied warranties of quality. http://apps.leg.wa.gov/RCW/default.aspx?cite=64.34.450
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| Q. | Before filing a lawsuit against the developer, what procedure must be followed? |
| A. | RCW 64.50.020 provides certain notice requirements that must be met before a construction defect action may commence. Under Lakemont Ridge Homeowners Ass’n v. Lakemont Ridge Ltd. Partnership, 156 Wn.2d 696, 131 P.3d 905 (2006), these notice requirements must be met if the developer gave the homeowner notice of the RCW 64.50, et seq. notice requirements at the time of sale, construction or substantial remodel of the residence. http://apps.leg.wa.gov/RCW/default.aspx?cite=64.50.020
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| Q. | What type of notice, if any, must a Board of Directors provide its association’s homeowners before instituting a construction defect action? |
| A. | RCW 64.50.040 provides what type of notice a Board of Directors must provide to Homeowners before a lawsuit may be instituted against the developer (Declarant).
http://apps.leg.wa.gov/RCW/default.aspx?cite=64.50.040
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| Q. | How long does a homeowner association have to file a suit against the developer (Declarant) for breach of statutory warranties? |
| A. | RCW 64.34.452 provides when a judicial proceeding for breach of the Washington Condominium Act’s statutory warranties must be commenced by. http://apps.leg.wa.gov/RCW/default.aspx?cite=64.34.452
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| Q. | If a homeowners association prevails on its claim under the Washington Condominium Act, who pays the association’s attorney fees? |
| A. | RCW 64.34.455 addresses attorney’s fees. http://apps.leg.wa.gov/RCW/default.aspx?cite=64.34.455
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| Q. | How are most claims resolved? |
| A. | Once a lawsuit has been commenced under the Washington Condominium Act, several alternative dispute resolution provisions apply.
The vast majority of construction defect claims are resolved through a mediation process. This process involves the use of a mediator, typically a retired judge or attorney, who assists the parties eliminate or narrow disagreements in order to reach settlement. RCW 64.55.120 provides for mandatory mediation within 7 months of filing or service of the complaint, whichever is later. http://apps.leg.wa.gov/RCW/default.aspx?cite=64.55.120
Under RCW 64.55.100, a declarant, Association, or unit owner may demand an arbitration. This demand must be made no later than 90 days after filing or service of the complaint. http://apps.leg.wa.gov/RCW/default.aspx?cite=64.55.100
The difference between mediation and arbitration is that in mediation, the mediator helps the parties settle the claim, but does not have the power to resolve the claim. In arbitration, the arbitrator acts like a judge or jury and will decide the case.
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| Q. | What other requirements does RCW 64.55, et seq. impose that homeowners should be aware of? |
| A. | RCW 64.55, et seq. requires inspections be done on all multiunit residential buildings by a qualified inspector during the initial construction and during rehabilitative construction. For more information about RCW 64.55, et seq. visit http://apps.leg.wa.gov/RCW/default.aspx?cite=64.55
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| Q. | How can I learn more about the Washington Condominium Act? |
| A. | The Washington Condominium Act, RCW 64.34, et seq., includes important consumer protections for condominium associations and owners. For more information about the Washington Condominium Act provisions, visit http://apps.leg.wa.gov/RCW/default.aspx?cite=64.34
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| Note: The above answers and excerpts are for informational purposes only and do not constitute legal advice. Any person or association facing construction defect or homeowners association issues should consult with qualified legal counsel.
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