March 25, 2009

13th District legislators pleased as distressed properties
bill is signed into law

A bill aimed at addressing some of the unintended consequences of a home owner protection bill passed last year that unfairly targeted some legitimate realtors was signed into law by the governor today. Senate Bill 5221 was co-sponsored by Sen. Janéa Holmquist, and supported by Reps. Bill Hinkle and Judy Warnick, who co-sponsored the House version of the bill.

“This bill is a ‘tune-up’ of a bill from last year that had an unintended effect of putting some realtors who work with distressed homeowners at a great risk of liability.” said Holmquist, R-Moses Lake. “I am pleased we were able to work together to come up with a bill that protects consumers, while fixing the flaw created by last year’s bill. The measure signed into law today exempts real estate agents who are working in an ethical manner within normal, accepted business practices while keeping in place critically-needed consumer protections.”

“The law that passed last year was intended to protect vulnerable homeowners facing foreclosure from scam artists that prey on their desperate situations and try to steal the property owner’s home equity,” said Hinkle, R-Cle Elum. "But the law had the opposite effect and actually made things harder for those very same homeowners.”

“It’s important that the Legislature correct this mistake and make sure we balance the work of realtors and the needs of property owners,” said Warnick, R-Moses Lake. “I worked to put an emergency clause on this legislation so real estate brokers and sales people can get back to their jobs and help distressed homeowners and interested buyers in real estate immediately. I applaud the coordination and cooperation between the realtors and Attorney General McKenna to insure that we passed a well-crafted fix for the unintended consequences from last year’s legislation.”

SB 5221, which passed unanimously in both houses of the Legislature, would exempt licensed real estate brokers and salespersons from the definition of “distressed home consultant” when the broker or salesperson is providing services governed under the real estate brokerage laws and the services do not result in a distressed home conveyance.

The bill goes into effect today.

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For more information, contact: Brendon Wold, Senior Information Officer: (360) 786-7698