Selling a home in Washington looks simple from the outside: list with a broker, accept an offer, sign at escrow. The legal work underneath is more involved, and most of the risk falls on the seller after closing, not before. Holmes Law works with sellers as a Washington residential sales attorney, helping them prepare an accurate seller disclosure statement, understand the tax consequences of the sale, sign the right deed, and handle sales by estates, trusts, co-owners and landlords with tenants in place.
Washington has its own rules on every one of those points. The seller disclosure statute, chapter 64.06 RCW, sets a statutory form and a short rescission window for buyers. The state collects a graduated real estate excise tax rather than an income tax on the gain. Community property law requires both spouses to sign. The Residential Landlord-Tenant Act limits when a seller can end a tenancy. Michael Holmes is admitted in Washington and works remotely with sellers across the state. This page is general information, not legal advice for your sale. For an overview of the practice area, visit the Washington real estate page.
The Seller Disclosure Statement: Where a Washington Residential Sales Attorney Starts
Most sellers of residential real property in Washington must deliver a completed seller disclosure statement on the form set out in RCW 64.06.020. In the Northwest Multiple Listing Service system this is Form 17. It asks detailed questions about title, water supply, sewer and septic, the structure, systems and fixtures, the common interest community, environmental conditions, lead-based paint, manufactured homes and other topics.
When the statement is due and what happens after delivery
The statement is usually delivered shortly after mutual acceptance unless the buyer has already received it. Under RCW 64.06.030, the buyer then has three business days after delivery to rescind the agreement by written notice, unless the buyer has waived that right. A seller who delivers late, or who amends the statement after learning new facts, can give the buyer a fresh opportunity to reconsider. Sellers should expect that a buyer who is having second thoughts will look for that opportunity.
Seller liability: the actual knowledge standard
RCW 64.06.050 provides that a seller is not liable for an error, inaccuracy or omission in the disclosure statement unless the seller had actual knowledge of it. That is meaningful protection for a seller who answers honestly, but it is not a shield for a seller who knew about a leaking roof, a failed septic system or past flooding and checked “no.” Answering “don’t know” to a question the seller actually knows the answer to is not a safe harbor.
Washington buyers also bring claims outside the statute, most often fraudulent concealment and misrepresentation. The Washington Supreme Court has limited some tort claims in the purchase setting in cases such as Alejandre v. Bull, 159 Wn.2d 674 (2007), and Eastwood v. Horse Harbor Foundation, 170 Wn.2d 380 (2010), but a seller who knowingly hid a material defect remains exposed. The practical advice is simple: disclose what you know, attach reports and repair records, and use the explanation lines rather than leaving ambiguous answers.
Transfers that are exempt from the disclosure requirement
RCW 64.06.010 exempts certain transfers, including foreclosures and deeds in lieu, gifts and transfers to a spouse, domestic partner, parent or child, transfers between spouses in a dissolution, transfers made by the personal representative of a decedent’s estate or by a trustee in bankruptcy, and certain other transactions. The statute also allows a buyer to waive receipt of the statement, except that under RCW 64.06.010(7) the buyer may not waive the environmental section if any of its questions would be answered “yes.” Exempt sellers still cannot commit fraud, and many estate and trust sellers provide a limited disclosure voluntarily to reduce later disputes.
Community Property, Co-Owners and Who Must Sign
Washington is a community property state. Under RCW 26.16.030, neither spouse may sell, convey or encumber community real property without the other spouse joining in the deed or instrument. A listing agreement or purchase and sale agreement signed by only one spouse can create serious problems if the other spouse later refuses to join. When the home is claimed as one spouse’s separate property, the title history, the source of funds and any written agreement between the spouses should be reviewed before listing.
Co-owners who are not married, such as siblings who inherited a house or unmarried partners, must all sign unless one holds authority to act for the others. If co-owners cannot agree on whether or when to sell, Washington’s partition statute, chapter 7.52 RCW, allows a court to divide the property or order a sale. A negotiated buyout is almost always faster and less expensive.
Sellers who sign through an agent under a power of attorney should confirm the document grants real property authority and will be accepted by the title company. The Washington estate planning page covers durable powers of attorney in more detail.
Tax Withholding, FIRPTA and the Federal Home Sale Exclusion
No Washington income tax withholding on the sale
Washington has no personal income tax, so there is no state income tax withholding on a home sale, unlike states that require escrow to withhold a percentage of the price for nonresident sellers. Washington’s capital gains excise tax, chapter 82.87 RCW, exempts real estate. The Department of Revenue treats the sale of real estate as exempt, and it also exempts gain on interests in privately held entities to the extent the gain is directly attributable to real estate the entity owns directly.
FIRPTA
If the seller is a foreign person for federal tax purposes, the Foreign Investment in Real Property Tax Act generally requires the buyer to withhold a percentage of the amount realized and remit it to the IRS. Exceptions and reduced rates can apply, particularly for residences the buyer will occupy, but the buyer bears liability for failed withholding, so escrow will require a certification of non-foreign status or a withholding arrangement. Sellers who are nonresident aliens should involve a tax professional well before closing.
The Section 121 exclusion
Under Internal Revenue Code § 121, a seller who owned and used the home as a principal residence for at least two of the five years before the sale may exclude a substantial amount of gain from federal income, with a larger exclusion for married couples filing jointly who both meet the use test. Partial exclusions are available for some sales caused by a change in employment, health or unforeseen circumstances. Rental use, a home office and depreciation claimed after May 6, 1997 can reduce the benefit. For a surviving spouse, the basis adjustment at death can matter as much as § 121. In a community property state such as Washington, both halves of community property can receive a new basis at the first spouse’s death, which is a significant planning point for older couples considering a sale.
Real Estate Excise Tax Under Chapter 82.45 RCW
Washington imposes a real estate excise tax (REET) on the sale of real property, and the seller customarily pays it. If the seller does not pay, the buyer becomes responsible. The state portion is graduated: different rates apply to different bands of the selling price, with higher rates on the upper bands, and the Department of Revenue adjusts the thresholds every four years. Agricultural and timberland sales use a separate flat state rate. Cities and counties also impose local REET. The tax is collected by the county treasurer when the deed is recorded, using a REET affidavit.
Some transfers are exempt, such as many gifts, inheritances and transfers between spouses in a dissolution, under the Department of Revenue rules in chapter 458-61A WAC. A controlling interest transfer, where fifty percent or more of an entity holding Washington real property changes hands within a 36-month period, can also trigger REET even though no deed is recorded. The Washington commercial sales page discusses that rule in the entity context.
Choosing the Right Deed With a Washington Residential Sales Attorney
Washington statutes provide short-form deeds that carry defined meanings. RCW 64.04.030 sets out the statutory warranty deed, which carries full covenants of title. RCW 64.04.040 provides the bargain and sale deed, which carries more limited covenants. RCW 64.04.050 provides the quitclaim deed, which conveys whatever interest the grantor has without warranties. Under RCW 64.04.020, deeds must be in writing, signed and acknowledged.
The NWMLS residential form generally calls for a statutory warranty deed. Personal representatives, trustees and other fiduciaries commonly use a fiduciary deed or bargain and sale deed, and the contract should say so. A seller who agrees to deliver a statutory warranty deed is promising to defend title, which is why the title commitment should be reviewed before the seller signs the purchase agreement, not afterward.
Sales by Personal Representatives, Trustees and Surviving Spouses
Estates
When a Washington homeowner dies, the house may pass through probate. A personal representative who has been granted nonintervention powers under chapter 11.68 RCW can usually sell real property without court approval. Without nonintervention powers, the sale generally proceeds under chapter 11.56 RCW with court involvement. The title company will want letters testamentary or letters of administration, the order granting nonintervention powers if any, and sometimes consents from heirs. As noted above, a personal representative’s sale is exempt from the seller disclosure requirement.
Trusts
If the home was held in a revocable living trust, the successor trustee usually sells under the trust’s own powers and the Washington Trust Act, chapter 11.98 RCW, without going to court. Title companies typically ask for a certification of trust and proof of the trustee’s appointment. Trustees owe fiduciary duties to the beneficiaries, so a sale to a family member or below market value should be documented carefully. Disputes can often be resolved by binding agreement under the Trust and Estate Dispute Resolution Act, chapter 11.96A RCW.
Transfer on death deeds and community property agreements
A beneficiary who received the house under a transfer on death deed recorded under chapter 64.80 RCW takes title without probate, but the property can remain subject to certain claims. A surviving spouse may hold title through a community property agreement, which the title company will want recorded with a death certificate. See Washington trusts for how these tools interact.
Selling a Tenant-Occupied Home
Washington’s Residential Landlord-Tenant Act, chapter 59.18 RCW, significantly limits a landlord’s ability to end a tenancy. Under the just cause provisions of RCW 59.18.650, a sale is not by itself a reason to terminate. The statute does allow termination when the owner elects to sell a single-family residence and gives at least 90 days’ advance written notice, but the owner must actually list the property for sale at a reasonable price within 30 days after the tenant vacates, and the statute creates a presumption against the owner if the home is withdrawn from the market or rented to someone else. A separate ground allows termination on at least 90 days’ notice when the owner or an immediate family member will occupy the unit as a principal residence. Local ordinances in cities such as Seattle can add further requirements.
Many sellers instead sell with the tenant in place to an investor buyer. In that case the lease, rent roll and deposits need to be documented, and RCW 59.18.270 requires that deposits held in trust be transferred to the successor landlord at the time of the transfer, with prompt notice to the tenant. Sellers should also review the 2025 statewide limits on rent increases before promising a buyer any particular rent.
Frequently Asked Questions
Do I have to fill out Form 17 if I am selling my parents’ house as executor?
A transfer by the personal representative of a decedent’s estate is exempt from the disclosure requirement under RCW 64.06.010. You still must not conceal known defects, and many personal representatives give a limited voluntary disclosure.
Can the buyer back out after receiving my disclosure statement?
Yes, within three business days after delivery, unless the buyer waived that right. That is why sellers often deliver the statement as early as possible.
Will Washington tax the profit on my home sale?
Washington has no personal income tax, and the state capital gains tax exempts real estate. The sale is subject to the real estate excise tax, which the seller usually pays. Federal tax may apply, subject to the § 121 exclusion.
My spouse is not on title. Does my spouse need to sign?
If the home is community property, yes. RCW 26.16.030 requires both spouses to join in a sale. Title in one name alone does not settle whether the property is community or separate.
Can I sell a house that is in my trust without probate?
Usually yes. The trustee sells under the trust’s powers and chapter 11.98 RCW, and the title company will ask for a certification of trust.
Can I make my tenant move out so I can sell?
Only on a ground allowed by RCW 59.18.650. For a single-family residence, the owner-sale ground requires at least 90 days’ written notice and a genuine listing afterward. Selling with the tenant in place is often the simpler route.
Speak With a Washington Residential Sales Attorney
Most seller liability is created before closing, on the disclosure form and in the purchase agreement. Holmes Law can review your disclosure statement, your title situation and your contract, and help personal representatives and trustees sell property correctly. If you are also buying, see the Washington residential purchase page. Contact Holmes Law to schedule a consultation with Michael Holmes about your Washington home sale.