When is a Seller Exempt From Form 17?

The Seller Disclosure (Form 17) is a required document when transferring real estate in Washington State.  The Form 17 is a document straight from the folks in Olympia (not the Multiple Listing Service).  So, the questions and requirements are set forth by government through the Revised Code of Washington (RCW).

With few exceptions, Sellers are required to complete a Form 17.  If the Buyer does not receive a Form 17 that Buyer can walk away from the transaction any time prior to closing without penalty.

There are a few exemptions in RCW 64.06.010

Application — Exceptions for certain transfers of real property.

This chapter does not apply to the following transfers of real property:

(1) A foreclosure or deed-in-lieu of foreclosure;

(2) A gift or other transfer to a parent, spouse, domestic partner, or child of a transferor or child of any parent, spouse, or domestic partner of a transferor;

(3) A transfer between spouses or between domestic partners in connection with a marital dissolution or dissolution of a state registered domestic partnership;

(4) A transfer where a buyer had an ownership interest in the property within two years of the date of the transfer including, but not limited to, an ownership interest as a partner in a partnership, a limited partner in a limited partnership, a shareholder in a corporation, a leasehold interest, or transfers to and from a facilitator pursuant to a tax deferred exchange;

(5) A transfer of an interest that is less than fee simple, except that the transfer of a vendee’s interest under a real estate contract is subject to the requirements of this chapter;

(6) A transfer made by the personal representative of the estate of the decedent or by a trustee in bankruptcy; and

(7) A transfer in which the buyer has expressly waived the receipt of the seller disclosure statement. However, if the answer to any of the questions in the section entitled “Environmental” would be “yes,” the buyer may not waive the receipt of the “Environmental” section of the seller disclosure statement.

There is a lot of misinformation about the Seller Disclosure and who is exempt.  Be careful and consult with a knowledgable real estate professiuonal if you have questions.