House Sale Addendum

Revised 8/1/96

Guardians selling real property have extraordinary duties which must be well understood by the guardian and the real estate agent.

It is advisable to disclose this information to buyers as well. This form sets out the requirements, cites relevant sections of the law and acts as a disclosure document. Most buyers are willing to accept these requirements. 

FIDUCARY ADDENDUM

To real estate purchase and sale agreement dated _______________________.

PURCHASER ____________________________________________________________________

SELLER _______________________________________________, by_______________________________________, as guardian subject to court approval.

This sale is made by guardian on behalf of seller and is subject to the provisions of RCW 11.56.060 through 11.56.110; and RCW 11.92.090 through 11.92.125.

Due to the requirements of these statutes, "mutual acceptance" for purposes of computing time periods and deadlines created by this agreement may be deemed to occur at the time of the Order Confirming Sale, described below.

Buyer acknowledges that Seller is a guardian and can make no representations or warranties whatsoever, express or implied, regarding the Property because Seller has insufficient information to make such representations or warranties. Buyer acknowledges that Seller's disclaimer of warranties and representations in this Addendum was bargained for and that the price which Buyer is paying for the Property reflects the lack of warranties and representations by Seller. Buyer further acknowledges that Buyer's determinations as to the condition or suitability of the property were based on Buyer's inspections or evaluation, upon which Seller makes no representation or warranty.

The Property is sold "as is," without warranty or representation by Seller as to (a) the condition or habitability of the property, (b) the presence or absence of any hazardous or toxic substances on the Property, (c) whether or not the Property complies with applicable governmental laws and regulations, including those pertaining to short platting, (d) the location of the Property boundaries and the presence or absence of encroachments upon the Property or from the Property upon adjoining property, (e) whether the Property is served by a public water main, public sewer main, or other utilities, (f) condition of well, if any, or septic system, if any, and their compliance with applicable governmental requirements, (g) lot size or square footage of the Property, (h) zoning of the Property, (i) the suitability of the Property for any general or particular use contemplated by Buyer, and (j) as to any other matter relating to the Property.

Buyer acknowledges that Buyer has been advised of Buyer's right to receive a Real Property Transfer Disclosure Statement ( "Disclosure Statement") concerning the Property pursuant to RCW Chapter 64.06. BUYER EXPRESSLY WAIVES THE RIGHT TO RECEIVE A COMPLETED DISCLOSURE STATEMENT.

Buyer acknowledges that Buyer has been advised of Buyer's right to rescind this purchase at any time prior to closing because Buyer has not received a Disclosure Statement. BUYER EXPRESSLY WAIVES THE RIGHT TO RESCIND THIS PURCHASE BECAUSE A COMPLETED DISCLOSURE STATEMENT HAS NOT BEEN PROVIDED.

Any personal property, debris, fixtures or other items remaining on the property when possession is transferred to purchaser shall thereupon become the property of purchaser, and may be retained or disposed of as purchaser determines.

In the event seller agrees to pay for work orders required by lender, such work shall be deemed satisfactory if approved by lender. Buyer will make no claim against seller relating to the quality, condition of adequacy of work orders performed by seller.

Title shall be conveyed by a Bargain and Sale Deed.

Title insurance will be by Stewart Title.

SUMMARY OF REQUIREMENTS FOR SALES BY GUARDIAN

Guardians are appointed by Superior Court to manage the personal or financial affairs of individuals found by the court to be incapacitated to do so themselves. The actions of guardians in real estate transactions are closely supervised by the courts. This addendum is for the benefit of buyers and agents to know the procedures that must be observed.

Prior to listing a property for sale the guardian must document the reason a sale is in the interests of the ward, document the market value of the property and obtain an Order Authorizing Sale.

When a buyer makes an offer deemed acceptable by the guardian, the guardian must submit the offer to the court for approval and obtain an Order Directing Sale. Typically, the guardian signs the offer as accepted "subject to court approval". The offer is then sent to the guardian's attorney, who prepares legal papers to submit to court. If other offers are presented to the guardian prior to the court's Order Directing Sale, these are submitted also and the court approves and directs sale to the offer that is in the best interests of the ward. The process of obtaining the Order Directing Sale can take as long as 20 days.

After the entry of an Order Directing Sale, the guardian must publish Notice of Sale in a journal of record. In King County this is usually the Daily Journal of Commerce. During the 10 days following publication of notice the approved offer can be "bumped" by an Offer of Increased Bid.

After the notice period has expired, if there was no Offer of Increased Bid, the attorney obtains an Order Confirming Sale, which finalizes the purchase and sale agreement. No further court action is necessary after the entry of the Order Confirming Sale.

An Offer of Increased Bid must be at least 10% higher than the original offer, and must be accompanied by earnest money of 20% of the offer in cash, cashiers check or certified money order payable to the clerk of the Superior Court. If such an offer comes in within the notice period, the original buyer is given 5 days notice, and may make a better bid. After the 5 day notice period a hearing is held, and an Order Confirming Sale is issued on the bid before the court that the court deems to be in the best interests of the seller.

Once an offer is confirmed and has closed, no failure on the part of the guardian or the guardian attorney, nor any judicial error, can affect the ownership rights of the purchaser.

Other than the above, a guardian may act as a typical seller in negotiating price and terms, in

dealing with work orders and other matters typically encountered in property sales.

_________________________ ____/____/____ _________________________ ____/____/____

Buyer Date Buyer Date

______________________________________ ____/____/____

Guardianship Date

Guardianship Services of Seattle

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