LEGAL BULLETIN:
Important Revisions to
Lease Acknowledgments
and CBA's Listing Turn-In Rule
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There are two important changes that CBA members should be aware of that impact your business. The first pertains to a recent change in Washington law relaxing the requirements for leases to be acknowledged. The second is a set of revisions to CBA’s rules concerning mandatory and optional turn-in of listings.
Lease Acknowledgments
Washington law requires any lease with a term longer than one year to be acknowledged by a notary. A revision to that requirement goes into effect on June 6, 2024. Under SSB 5840, which the Washington legislature passed unanimously in the 2024 legislative session, RCW 64.04.010 is modified to provide that leases do not require acknowledgment unless the parties will record the lease or a memorandum of lease. Accordingly, effective June 6, 2024, CBA lease forms will be revised to include a note on the notary pages informing parties that acknowledgment is required only if the lease or a memorandum thereof will be recorded. Any lease with a term greater than one year that is entered before June 6, 2024, must still be notarized.
CBA members with questions about this change in the law should consult their firm’s legal counsel.
Listing Turn-In
CBA Rules 1 and 2 govern mandatory and optional turn-in of certain types of listings. Because CBA’s overall purpose is specific to commercial real estate, CBA made the following changes to clarify the types of listings to be turned in for publication in CBA’s listing database.
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Rule 1, pertaining to Mandatory Turn-In, has been revised to clarify that any listing for commercial real estate, as that term is defined by applicable law, must be turned in to CBA.1 The rule also clarifies that subdivisions, as defined by applicable law, must be turned in to CBA. 2 The rule continues to make clear that business opportunities must be turned in to CBA.
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Rule 2, pertaining to Optional Turn-In, has been revised to exclude listings for residential real estate, defined by Washington state law as "Real property consisting of, or improved by, one to four residential dwelling units." Effective immediately, CBA will not accept listings for residential real estate. Note that this does not apply to subdivisions, which, as noted above, are subject to mandatory turn-in under Rule 1.
Members who have listings for residential real estate should submit those listings to the applicable residential multiple listing service. NOTE: residential listings under 5 units that are currently active in CBA will remain in our system until they sell/expire.
- The definition of “commercial real estate” in Washington is contained in RCW 60.42.005, and the definition of “commercial real estate” in Idaho is contained in I.C. 54-2004.
- The definition of “subdivision” in Washington is contained in RCW 58.17.020, and the definition of “subdivision” in Idaho is contained in I.C. 50-1301.
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It's going to be an un-fore-gettably fun time at Bear Creek Country Club on Monday, September 16th, 2024!
Sponsors, this is your chance to showcase your businesses, connect with local commercial real estate brokers and other industry professionals, and enjoy food, drinks, and fun in the sun! Plus, a post-tournament awards dinner provides ample opportunities for visiting and networking. As one of Washington state's best (and most fun!) tournaments, we typically host 35+ sponsor companies and 144 golfers.
If you'd like to join us on the links, we have a limited number of foursomes reserved for our generous sponsors. Like previous years, this tournament will sell out quickly, so don't wait!
Click below to review all sponsorship opportunities, or contact Adrianne for more information.
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Good News – CBA Research Has Expanded Our CMA Coverage!
CBA Research has expanded two market data sets it reports on for our members.
First, CBA increased the number of counties researched in our CMA sales comparable database to eight with the addition of two new counties, Whatcom and Skagit. This means that on top of the previously available CBA sold listing data, CBA staff will now actively research and verify all office, retail, industrial, multifamily, and commercial land deals in these counties, $250K and up, and with multifamily deals 5 units or larger.
Second, multifamily research has been expanded to include Kitsap, Spokane, and Thurston Counties (in addition to the previously mentioned Whatcom and Skagit). For each of these counties’ expanded sales comparable data sets, the researched sales will go back to 2021.
To run a CMA search, search listings on the CBA site as you normally would, but make sure you check “Sold” and “Only confirmed prices” as search criteria, and your results will be pulled from the CMA database.
To see our Q1 2024 Report, click on the link below.
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THANKS FOR MAKING CBA'S SPRING FORUM
A ROUSING SUCCESS!
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Thanks to those of you who joined us for CBA’s Spring Forum. The response from attendees was overwhelmingly positive, and we are thrilled by your enthusiasm and participation!
We are committed to bringing you more unique learning opportunities in the future. To help us tailor our events to your specific needs, we’d love your suggestions on topics you want us to cover.
And if you have expertise you'd like to share by teaching a class or speaking at future Forums or similar educational events, we're eager to hear from you.
Please reach out to us with your ideas and interests at kaustin@commercialmls.com.
Thanks once again for your support and engagement. We hope to see you soon at a CBA class or a future Forum!
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DATE: June 12, 2024 (NEW DATE!)
TIME: 9 a.m. - 1 p.m.
CREDITS: 4 CE Hours
LOCATION: Live Webinar
COST: $75 CBA Members | $90 Non-Members
Commercial Brokers encounter leasing challenges that can kill deals and destroy opportunities for new deals. This course gives you the knowledge and skills to avoid and solve deal-killers and create new opportunities. You’ll learn how to overcome common deal killers and become aware of proven techniques to become an even better deal maker.
You'll also learn:
- Proven methods to prepare to negotiate the best deals
- How to reposition properties and renegotiate leases in a difficult market
- How to determine the optimum rental rates for each property and each owner
- Time-tested solutions to help your clients address and solve tenants’ requests for assistance in difficult financial times
Instructor: Richard Muhlebach
Richard has 50 years of experience marketing and leasing shopping centers, regional malls, office, and medical buildings in Seattle and San Francisco. He served as the vice president of three development companies and the president of a management and leasing firm he founded.
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DATE: July 18, 2024
TIME: 9 a.m. - Noon
CREDITS: 3 CE Hours
LOCATION: CBA Training Room, Lynnwood
COST: $65 CBA Members | $80 Non-Members
This class will provide a hands-on approach to examining the typical Phase I Environmental Site Assessment report.
Participants will learn:
- How each element of the report is completed,
- What the regulatory requirements are, and
- How final conclusions are reached
Each participant will also receive a typical Phase I ESA report with a list of appendices.
Instructor: John R. Kane, CEO/President of Kane Environmental
John has over 35 years of experience in the environmental services industry. In 1994, he joined Environmental Partners as Principal and Senior Geologist responsible for Phase I due diligence projects for commercial/industrial sites and mergers and acquisitions. In 2000, John founded Kane Environmental to provide business solutions to improve the environmental, social, and economic health in communities across the US.
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