Washington's seller disclosure statute (RCW 64.06) requires sellers of residential property to complete and deliver the Seller Disclosure Statement — commonly known as NWMLS Form 17 — to the buyer before the buyer's offer is accepted. The form requires the seller to disclose known material defects and conditions affecting the property, including:
The purpose of Form 17 is to give buyers accurate information before they commit to a purchase, and to protect sellers by creating a documented record of what was disclosed.
Sellers are NOT required to hire inspectors or investigate before completing Form 17. They must honestly report what they know. A seller who genuinely does not know about a defect cannot be penalized for failing to disclose it. However, a seller who knows about a problem and intentionally conceals or understates it faces liability for misrepresentation.
Washington brokers have an independent disclosure duty: they must disclose material defects they actually know about to buyers, regardless of what the seller put on Form 17.
Several transaction types are exempt from the Form 17 requirement:
If the seller fails to deliver Form 17 before the offer is accepted, or if the form contains known false information, the buyer may rescind the purchase and sale agreement within 3 business days of receiving the form (or any amendment). This rescission right is a powerful remedy — but it must be exercised affirmatively within the 3-day window. After 3 business days without rescission, the buyer has waived this specific remedy (though fraud claims may survive closing).
Real-world example: A seller completes Form 17 and marks "no known water intrusion" in the basement section. The buyer's offer is accepted. During the inspection, the buyer discovers the basement has flooded twice in the past three years — the seller's neighbor confirms they mentioned it to the seller. The buyer receives Form 17 for the first time on Monday. The buyer has until Thursday end-of-day (3 business days) to rescind the agreement and recover the earnest money.
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Quiz Questions:
Q1. When must a Washington seller deliver Form 17 to the buyer?
A) At the time of closing B) Before the buyer's offer is accepted C) Within 5 business days after the offer is accepted D) After the home inspection is complete
Answer: B — Form 17 must be delivered before the buyer's offer is accepted. This ensures the buyer has the disclosure information when making their purchasing decision, not after they are already contractually committed.
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Q2. A buyer's offer is accepted before the seller delivers Form 17. The seller mails the form and the buyer receives it on Tuesday. What is the buyer's right?
A) The buyer has no remedy because the offer was already accepted B) The buyer may rescind the purchase and sale agreement within 3 business days of receiving Form 17 C) The buyer may rescind within 5 business days of receiving Form 17 D) The buyer must complete the purchase because rescission requires court approval
Answer: B — Washington law gives buyers a 3-business-day rescission right when Form 17 is delivered late (after offer acceptance). The buyer receives the form Tuesday; 3 business days later is Friday. The buyer must exercise rescission affirmatively before the window closes.
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Q3. A Washington seller of a new construction home is exempt from providing Form 17. Which of the following is still true?
A) The builder has no disclosure obligations whatsoever for new construction B) The builder must still disclose known defects even without Form 17; the exemption only covers the specific form requirement, not the duty to disclose C) The buyer has no recourse if the builder conceals known defects in a new construction sale D) The new construction exemption eliminates all seller disclosure requirements permanently
Answer: B — New construction is exempt from the Form 17 requirement (builders provide warranties instead), but this does not eliminate the builder's obligation to disclose known defects. Intentional concealment of known defects by a builder remains actionable as fraud or misrepresentation.
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Q4. A Washington broker listing a property for sale is shown photos by the seller of significant mold in the attic during a pre-listing walkthrough. The seller does not include mold on Form 17. What must the broker do?
A) Respect the seller's disclosure decisions; the agent should not independently contradict the seller's form B) Independently disclose the known attic mold to buyers, because the broker's duty to disclose actually known material defects applies regardless of what Form 17 says C) Refuse to list the property unless the seller corrects Form 17 D) Document the mold in internal files but not disclose it unless a buyer specifically asks about mold
Answer: B — The broker's independent disclosure duty under RCW 18.86 requires disclosing material defects the broker actually knows about, regardless of what the seller's form states. Significant mold is clearly a material defect. The broker should also advise the seller to amend Form 17, but the broker's own disclosure obligation exists independently.
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Q5. Which of the following Washington transactions is EXEMPT from the Form 17 requirement?
A) A standard resale of a 3-bedroom single-family home by an individual seller B) A sale of a duplex by an investor to a first-time buyer C) A transfer of residential property by court order in a divorce proceeding D) A for-sale-by-owner transaction with no real estate agents involved
Answer: C — Transfers by court order (including divorce decrees) are exempt from the Form 17 requirement because the transferor may not have personal knowledge of the property's condition. Standard resales (A), duplex sales (B), and FSBOs (D) all require Form 17.