The Washington State Legislature has proposed making significant changes to the Condominium Law that was passed several decades ago that should encourage additional condominium development throughout the State. The House and Senate are debating numerous topics that may spur future development but the most significant are the removal from personal liability HOA Board Members have been exposed to if they do not file a lawsuit against the developer for construction defects and, the definition of what constitutes defects are that developers can be sued for. These two issues are huge. Current Condominium Law states that HOA Board Members “can be held personally liable to pay for defects they did not sue the builder for causing”. The current Law also states that the builder must comply “with all laws”. Proposed legislation will replace “sound construction standards” with “generally accepted construction standards”
If the Legislature passes into law just these two changes, and the Governor signs the legislation, you’ll see a significant increase in the construction of condominiums in Seattle. If you’re a condominium owner, how will that affect the value of your condominium? That will be entirely on your location, the age of your condominium, the style of the condo, and other factors. In general, the more inventory there is, the less likely condominiums will appreciate at a high percentage rate. An influx of new condominiums will likely reduce the desirability of older condo’s thus reducing their value in the eyes of potential Buyers.