Residential Property Transactions

Residential Property Transaction (Predatory Homebuying)

Residential property transactions are when a buyer or their representative solicit a residential property owner to buy their property when the property is not on the market/advertised to be sold. The ordinance requires buyers to disclose certain information to owners before presenting an offer to purchase the property and provides time to cancel a signed contract. It provides information and time for an owner to review the offer and to help avoid predatory homebuying practices.

Visit the FAQ below to learn more. 

Residential Property Transactions

What does Seattle Ordinance 127292 do?

This ordinance establishes consumer protection for owners of residential property who are solicited to sell their property.   It requires buyers to disclose certain information to owners before presenting an offer to purchase the property and provides time to cancel a signed contract. It provides information and time for an owner to review the offer and to help avoid predatory homebuying practices.

What disclosures/information is a buyer required to provide to a residential property owner?

A buyer or their representative is required to provide the owner with the following:

Notice of rights at least five days before signing a purchase contract

At least 5 business days before signing a contract, a notice signed by the buyer and owner which includes the owner’s rights:

  • To access resources to assess the fair market value of the property, including the King County Assessor’s Office
  • To an appraisal of the property, paid for by the buyer
  • To hire a real-estate agent and seek legal counsel
Notice of rights when signing a purchase contract

Upon execution of a purchase contract, the buyer and seller must sign a separate disclosure document.  The disclosure shall include rights that the owner has, including:

  • The right to an appraisal of the property (paid by the buyer)
  • The right to hire a real-estate agent and seek legal counsel
  • Resources to assess the fair market value of the property including the King County Assessor’s Office
  • The right to cancel the purchase contract without penalty or further obligation within specific time limits (see item #4 and #5)
  • Contact information for City of Seattle’s Consumer Protection Division to report any suspected violations of this ordinance.
Time allowed for ordering an appraisal following signing of purchase contract 10 days
Time allowed to cancel contract after receiving appraisal 10 days
Time allowed to cancel the purchase contract after execution, without appraisal 10 days
Penalties for failure to comply

The buyer may be subject to a civil penalty of $7,500 for the first violation and $10,000 for each subsequent violation within a 12-month period.

Information about buyers and buyer’s representatives who have committed two violations withing a 12-month period will be posted on the city’s web site.

If a buyer has violated Chapter 6.610, will the city of Seattle be able to get me more money for the sale or cancel the sale (get my house back)?

No, the City can only issue monetary penalties to a business. However, any person who suffers financial injury as the result of a violation of Chapter 6.610 may bring civil action in court against the buyer or buyer’s representative.

Does this ordinance apply to licensed real estate agents/brokers?

No, ordinance 121039 does not apply to a buyer or seller who is represented by a licensed real estate broker.  You can check Washington State Department of Licensing here to see if someone is an active licensed broker in the state of Washington.

How can I file complaint against a business and/or a representative who I think did not follow this ordinance?

You can file three ways