Washington Real Estate Attorney
Washington real estate transactions involve a distinctive combination of escrow-based closings, statutory Form 17 disclosures, a graduated state real estate excise tax, the most detailed land-use planning framework in the country (the Growth Management Act), and significant attention to shorelines, critical areas, and forest practices. Whether you are buying or selling commercial property, navigating a condominium resale certificate, structuring a 1031 exchange, or working through a title or disclosure dispute, the right legal representation is the difference between a clean transaction and an expensive surprise.
Washington office: (206) 279-4780
How Washington Real Estate Closings Work
Washington is an escrow state. Most residential and many commercial closings are handled by licensed escrow agents (under the Washington Escrow Agent Registration Act) who prepare closing documents, hold and disburse funds, and coordinate with the title company that issues the policy. Attorneys are not required at routine residential closings — but they are essential in any of the following situations:
- Commercial purchases, sales, and leases.
- Transactions involving entity sellers or buyers (LLCs, partnerships, trusts, estates).
- Out-of-state seller transactions with potential federal (FIRPTA) withholding issues.
- Title defects, easement disputes, boundary problems, or adverse possession claims.
- Seller financing, real estate contracts (the Washington statutory equivalent of installment land contracts), or wraparound structures.
- 1031 tax-deferred exchanges.
- Properties subject to the Shoreline Management Act, critical areas ordinances, or forest practices rules.
- Condominium and HOA transactions with complex resale certificate issues.
- Construction defect claims.
Our firm provides attorney representation throughout Washington for all of these situations.
Washington Real Estate Excise Tax (REET)
Washington imposes a state real estate excise tax (REET) on most sales of real estate, in addition to local REET imposed by many cities and counties. As of January 1, 2020, Washington moved from a flat-rate state REET to a graduated rate structure for residential transactions:
- 1.10% on the portion of the selling price up to $525,000.
- 1.28% on the portion from $525,000.01 to $1,525,000.
- 2.75% on the portion from $1,525,000.01 to $3,025,000.
- 3.00% on the portion above $3,025,000.
Plus local REET (typically 0.25% to 0.50%). REET is generally paid by the seller and collected at closing. There are exemptions (transfers by gift, transfers between spouses, inheritance, certain entity restructurings) that require a separately filed exemption claim. Getting REET right on commercial transactions, multi-property portfolios, and entity transfers is non-trivial, and the Department of Revenue audits aggressively.
Washington Form 17 Seller Disclosure
Washington’s Seller Disclosure Statement (commonly called “Form 17,” required under RCW 64.06) is one of the most detailed seller disclosure forms in the country. Sellers of residential property (one to four units) must complete and deliver Form 17 to the buyer within five business days of mutual contract acceptance unless the buyer waives the right to receive it in writing. The form covers known information about title, water, sewer, structural, systems and fixtures, environmental, common interest, manufactured/mobile home matters, and a catch-all general disclosure section.
Failure to deliver Form 17 gives the buyer a statutory three-business-day right to rescind. Knowing misrepresentations can support claims for damages, rescission, and (in some cases) attorney fees under Washington’s Consumer Protection Act (RCW 19.86) or for fraud. We advise sellers on disclosure obligations and represent buyers when post-closing defects suggest a Form 17 violation.
Condominium Act Resale Certificates
Sales of resale condominium units in Washington require delivery of a comprehensive resale certificate under the Washington Condominium Act (RCW 64.34.425) or the newer Washington Common Interest Ownership Act (RCW 64.90). The certificate must include the governing documents, financial statements, budgets, reserve studies, assessment information, pending litigation disclosures, and insurance information. The certificate is the buyer’s opportunity to evaluate the health of the association before closing. Inadequate or misleading certificates can support post-closing claims against the association and selling owner. We review certificates for buyers and prepare them for sellers and associations.
Growth Management Act and Land Use
The Washington Growth Management Act (RCW 36.70A) requires all counties and most cities to adopt comprehensive land use plans and implementing regulations. The framework affects every real estate transaction involving development, redevelopment, or change of use, including:
- Designated Urban Growth Areas (UGAs) where most new development is permitted.
- Critical areas regulations (wetlands, geologically hazardous areas, fish and wildlife habitat, frequently flooded areas, aquifer recharge areas).
- Shoreline Management Act (SMA) requirements for development within 200 feet of marine waters and most rivers and lakes.
- Forest practices rules under RCW 76.09 for development on forest lands.
- Subdivision and short-plat approval processes.
- Stormwater and grading permits.
Our firm represents developers and landowners in the entitlement, permitting, and litigation aspects of Washington land use, and we evaluate land-use risk on every commercial real estate transaction we handle.
Commercial Real Estate
Commercial transactions — office, industrial, retail, multi-family, hospitality, mixed-use — require legal work that escrow companies do not perform. Our commercial real estate practice covers:
- Purchase and sale agreements including letter-of-intent negotiation, due diligence period coordination, and closing.
- Commercial leases — office, industrial, retail, ground leases, and percentage rent leases — on behalf of both landlords and tenants. Washington is largely freedom-of-contract on commercial leases, making careful drafting essential.
- Entity formation — nearly every commercial purchase is taken in an LLC. We coordinate with our Washington business law practice on entity selection and formation.
- Title and survey review with negotiation of ALTA endorsements.
- Lender representation in commercial real estate financing.
- Hospitality industry transactions — see our Commercial Real Estate for the Hospitality Industry page.
- Real estate development including entitlements, GMA compliance, SEPA review, and infrastructure agreements.
Non-Judicial Foreclosure (Deeds of Trust Act)
Washington is a deed of trust state. Lenders foreclose non-judicially under the Washington Deeds of Trust Act (RCW 61.24) through a trustee’s sale process that does not require court involvement. The process includes specific notice requirements (notice of default, notice of trustee’s sale, foreclosure mediation under the Foreclosure Fairness Act for owner-occupied residential property), strict timing rules, and post-sale redemption limits. We represent both borrowers (defending or restructuring before foreclosure) and lenders (ensuring procedural compliance) in foreclosure matters.
1031 Tax-Deferred Exchanges
Washington has no state income tax on most types of capital gains for real estate, simplifying the state-tax side of 1031 exchanges relative to California. The Washington capital gains tax enacted in 2022 generally exempts real estate gains, but we evaluate every exchange for specific exposure. On the federal side we coordinate with qualified intermediaries on identification rules, like-kind requirements, related-party limitations, and timing, and we structure exchanges across state lines for Washington clients acquiring replacement property in California, Idaho, Texas, or North Carolina (and vice versa).
Real Estate Litigation
When a transaction goes wrong — nondisclosure of material defects, breach of purchase contract, title defects, boundary or easement disputes, partition actions, broker disputes, construction defect claims, or specific performance claims — we represent clients in Washington superior court, federal court, mediation, and arbitration. Washington’s Consumer Protection Act (RCW 19.86) provides treble damages and attorney fee-shifting in qualifying cases — a significant litigation lever in real estate disputes involving deceptive conduct.
Schedule a Washington Real Estate Consultation
Washington: (206) 279-4780
Our other offices:
Idaho (208) 696-2772 · Southern California (714) 464-5188 · Northern California (707) 207-8005 · Texas (469) 535-6260 · North Carolina (919) 363-9945
See also: Washington (state hub) · Commercial Real Estate (pillar)
Disclaimer: The information on this page is general legal information about Washington real estate law and is not legal advice. REET rates, capital gains tax thresholds, and statutory disclosure requirements change. Always consult a Washington-licensed attorney about your specific situation. No attorney-client relationship is formed by visiting this page.
Schedule a Free Consultation in Washington
Discuss your matter with our Washington team. Initial consultations are complimentary.
Washington: (206) 279-4780
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Related Pages
- Washington multi-state practice hub — overview of all our Washington services.
- Real Estate across five states — see how we coordinate real estate matters across Idaho, California, Texas, Washington, and North Carolina.
- Washington Estate Planning
- Washington Business Law