The New Washington State Consumer Protection Law Throws People Out On The Streets
I provide A photo of a home that makes me smile, uploaded from Flickr by maripaintbox. I need a smile. Foreclosures aren’t a smiling matter, yet I feel I should add my 2 cents to the new Washington State Law, from one real estate agents perspective.
You may have already learned about this law. It is the law that supposedly protects people in foreclosure status or near foreclosure status from scammers. I am writing to add my note to this issue, mostly because I have been asked to help someone in trouble.
There certainly are preying opportunists out there, but in my opinion this law was badly written.
We aren’t suffering foreclosure community blight as some are, but this law may just bring it on. By community foreclosure blight I mean communities of homes that have gone back to banks and are in terrible condition. The banks don’t maintain the homes, so the blight becomes a problem.
In the name of consumer protection, this law poses such severe penalties on home buyers or investors that these buyers and investors are unlikely to buy a home that is owner occupied. Even with the best of intentions or the utmost honor in buying a home in a distressed situation, the penalties are steep.
I just had to inform a man his best option was to move out of the house. It made no sense to him, it makes no sense to me. This law is a bummer.
Here a couple of informative links on the topic.
From Matt Thomson, Gig Harbor REALTOR. and from Rain City Guide.
Tags: consumer+protection
June 18th, 2008 at 9:07 am
The concerns that I’ve heard expressed about this law are classic over-reactions to a new law. I discuss each concern that has been expressed to me on my blog at http://northwestlaw.wordpress.com/. If the new law scares people away, it just creates opportunities for others.
June 18th, 2008 at 9:11 am
Rand, I am glad to have you leave the link. Answer me this if you would. Does the law have penalties if the new buyer purchases a home occupied by the owner, then resells the home at a large profit.
June 19th, 2008 at 9:39 am
There is no penalty for that Larry. But you should see a lawyer before buying to be sure that you have not inadvertently done something that might put you at risk. The act focuses on what is told to the buyer and buying the home while granting the seller a right to repurchase. You need to take care that you operate within the law but the law does not forbid making a profit. It is intended to assure that the buyer is fully advised of what is happening and what the options are.
June 19th, 2008 at 1:47 pm
I will get back to you on my question. Been real busy, but think you are wrong.
June 19th, 2008 at 1:48 pm
You are right about a lawyer, I suggest one that is highly involved with real estate, like Doug Tingvall formerly counsel for John L Scott Real Estate
June 26th, 2008 at 10:44 am
Rand and others reading this: This article in nuwire investor details the pros and cons of this point I make: including why the title of this article. Lar