Washington Real Estate Law Guide: property timeline, disclosure file, and what to sort out first

Washington's real estate market is shaped by two features that distinguish it from nearly every other state: community property law (marriage makes both spouses co-owners of property acquired during the marriage) and the absence of a state income tax (offset by a real estate excise tax that applies to every sale). For the Puget Sound region — where median home prices in King County exceeded $900,000 in 2024 — the practical financial mechanics of buying and selling property involve tax calculations and community property considerations that require careful attention from both buyers and sellers.

Real Estate Excise Tax (REET): Washington's Graduated Sales Tax

Washington's Real Estate Excise Tax (REET, RCW 82.45) is paid by the seller on the sale price of all real property transfers. Washington enacted a graduated REET structure in 2020: (1) Sale price up to $525,000: 1.1% (was 1.28% under the old flat rate); (2) Sale price $525,001-$1,525,000: 1.28%; (3) Sale price $1,525,001-$3,025,000: 2.75%; (4) Sale price over $3,025,000: 3.0%. For a home selling at $900,000 in King County: REET calculation = (1.1% × $525,000) + (1.28% × $375,000) = $5,775 + $4,800 = $10,575. Compare to the old flat 1.28%: $900,000 × 1.28% = $11,520. The graduated structure somewhat benefits lower-price sellers and increases cost at the luxury end. Local governments may impose an additional 0.5% local REET for affordable housing or capital purposes. Seattle's additional local REET brings effective rates in Seattle above the statewide rates for transactions in the higher price tiers.

Washington Deed of Trust Foreclosure: Non-Judicial Process

Washington uses deeds of trust (not mortgages) for most residential loans, enabling non-judicial foreclosure through the trustee without going to court. Washington's Deed of Trust Act (RCW 61.24) governs the process: after the beneficiary (lender) declares default, the trustee must: (1) Record and mail a Notice of Default; (2) Wait 120 days before recording the Notice of Trustee's Sale; the Notice of Trustee's Sale must be mailed to the borrower and recorded at least 90 days before the sale. The minimum timeline from default to sale is approximately 190 days — significantly faster than judicial foreclosure states (like Washington's neighbor Oregon, which requires judicial process). Washington's Foreclosure Fairness Act (RCW 61.24.163, 2011) added: for owner-occupied residential property, the lender must offer mediation before beginning the 90-day pre-sale period; the mediator is a neutral third party helping the parties explore loan modification, short sale, or other alternatives. The Foreclosure Fairness Act has been credited with keeping many Washington homeowners in their homes by mandating a structured modification conversation.

Washington Landlord-Tenant Law: One of the Country's Most Protective Regimes

Washington's Residential Landlord-Tenant Act (RLTA, RCW 59.18) has been significantly strengthened in recent years. Key provisions: (1) Notice requirements for eviction — Washington requires cause for most evictions (RCW 59.18.650): nonpayment of rent; violation of lease terms; end of lease term with proper notice; nuisance; criminal activity on premises. Month-to-month tenancies require 20 days' notice minimum to terminate (longer in many cities); Seattle requires just cause for all evictions regardless of lease type; (2) Security deposit — maximum 1 month's rent under Seattle's law (Seattle amended RLTA to limit deposits); statewide no statutory maximum but landlord must provide a written receipt, deposit into a separate account, and return within 30 days of termination with itemized statement; (3) Move-in inspection — Washington landlords must offer move-in inspection to document pre-existing conditions; (4) Notice to repair — tenant can request repairs in writing; landlord has 10 days to respond. Several Washington cities (Seattle, Bellevue, Renton) have enacted local landlord-tenant protections that exceed state minimums. Seattle's "first in time" rule requires landlords to rent to the first qualifying applicant — addressing concerns about discriminatory screening in the ultra-competitive Seattle market.