Senate Bill Report — SHB 1081

Summary

A Senate Bill Report on SHB 1081, establishing consumer protections for owners of solicited real estate, as of March 14, 2025, prepared for the Senate Committee on Business, Financial Services & Trade. It records that the bill passed the House on 3/4/25 by 56-39 and was set for committee activity on 3/19/25. The background covers conveyance by deed, real estate appraisals and the Consumer Protection Act. The bill summary gives owners in solicited transactions a right to an appraisal paid for by the potential buyer, a right to cancel within four business days of receiving the appraisal or ten business days without one, a required rights statement in the purchase contract, and enforcement under the Consumer Protection Act.

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                             SENATE BILL REPORT
                                  SHB 1081

                                      As of March 14, 2025

Title: An act relating to establishing consumer protections for owners of solicited real estate.

Brief Description: Establishing consumer protections for owners of solicited real estate.

Sponsors: House Committee on Consumer Protection & Business (originally sponsored by
    Representatives Donaghy, Connors, Ryu, Taylor, Fosse, Kloba and Reeves).

Brief History: Passed House: 3/4/25, 56-39.
     Committee Activity: Business, Financial Services & Trade: 3/19/25.


                                     Brief Summary of Bill
           • Provides a property owner with the right to an appraisal for solicited real
             estate transactions.
           • Provides a property owner with the right to cancel a purchase
             contract without penalty or further obligation under certain conditions.
           • Requires the purchase contract for solicited real estate transactions to
             include a statement about the property owner's rights.
           • Provides for enforcement under the Consumer Protection Act.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clint McCarthy (786-7319)

     Background: Selling Real Property in Washington State. Statute governs real estate
     brokerages and the services agreements that brokerages enter into with buyers and sellers of
     real property. Buyers or sellers of real property are not required to use a real estate
     brokerage in the state of Washington.




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                        SHB 1081
     Washington law requires that real property is conveyed by deed. There are different types of
     deeds, but generally a deed must:
        • be in writing;
        • include consideration or be a gift;
        • include a legal description of the property;
        • be signed by the grantor in front of an authorized party, for instance, a notary; and
        • be delivered to the grantee with the intent to pass title.

     Real Estate Appraisals. Real Estate Appraisals are generally required by financial
     institutions that are financing a portion of the purchase cost. Financial institutions use an
     appraisal to determine whether the real property is worth the amount it is being purchased
     for. A buyer may not require an appraisal if the buyer is paying cash for the real property.

     Real estate appraisers evaluate the value of real property. The Department of Licensing
     oversees persons who provide appraisal services under the Certified Real Estate Appraiser
     Act (CREAA). CREAA prohibits a person from using the terms certified appraisal or state
     certified real estate appraiser unless that person is certified by the state.

     Consumer Protection Act. The Consumer Protection Act (CPA) prohibits unfair or
     deceptive acts or practices in trade or commerce; the formation of contracts, combinations,
     and conspiracies in restraint of trade or commerce; and monopolies. A person injured by a
     violation of the CPA may bring a civil action to enjoin violations and recover certain
     damages, costs, and attorneys' fees.

     The attorney general (AG) may bring an action in the name of the state, or on behalf of
     persons residing in the state, against any person to enjoin violations of the CPA and obtain
     restitution. The AG may seek civil penalties up to the statutorily authorized maximums
     against any person who violates the CPA. Civil penalties are paid to the state.

     Summary of Bill: The Right of Solicited Real Property Purchase Owner to an Appraisal.
     Owners of real property that enter into a purchase contract with a buyer or someone
     representing a buyer that actively solicits the purchase of real property through public
     advertising or written, electronic, or in person contact with an owner of real property not
     currently publicly available or listed on the real estate market are provided the right to an
     appraisal of the real property by a licensed appraiser and have the right to cancel the
     purchase contract without penalty or further obligation.

     When exercising their right to an appraisal, the owner has the right to select the appraiser
     and the potential buyer is responsible for the expense of the appraisal. The appraisal must
     be ordered within three business days of the execution of the purchase contract, and the
     owner of the solicited real property shall notify the potential buyer of the appraisal. The
     owner has the right to cancel the purchase contract without penalty or further obligation
     within four business days of receiving the appraisal.



Senate Bill Report                             -2-                                      SHB 1081
     When owners do not exercise their right to an appraisal, the owner has ten business days
     after execution of the contract.

     In the event of an owner cancelling the contract, the owner shall send a notice of
     cancellation to the buyer by mail, telegram, email, or other means of written
     communication. Notice of cancellation is considered given when mailed, filed for
     telegraphic transmission, or delivered to the buyer's designated place of business.

     These requirements do not apply to a buyer or seller represented by a real estate broker
     licensed in the state of Washington.

     Solicited Real Estate Purchase Contract Requirements. The purchase contract must state in
     at least ten-point boldface font and the seller must acknowledge in writing that the seller:
          • has a right to an appraisal; and
          • has a right to cancel the purchase contract without penalty or further obligation.

     Consumer Protection Act. A violation of these rights by a potential buyer or someone
     representing a potential buyer actively solicits the purchase of real property through public
     advertising or written, electronic, or in person contact with an owner of real property not
     currently publicly available or listed on the real estate market for purchase is considered a
     violation of the CPA and may be enforced as such.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                             -3-                                       SHB 1081


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