HB 2304: Expanding Express Warranty Option for Condominiums Under WUCIOA

Washington has taken another step toward increasing the supply of condominiums by removing legal and financial barriers for certain development projects.

On March 9, 2026, Governor Ferguson signed House Bill 2304 into law, and it took effect on June 11, 2026. Rather than locking developers into the state’s default implied warranty scheme, HB 2304 expands the types of developments that may take advantage of an express warranty of quality and express warranty insurance.

Below is a breakdown of what HB 2304 does, how it builds on existing law, and what it could mean for the state’s housing supply.

Implied Warranties Under WUCIOA

Under the Washington Uniform Common Interest Ownership Act (WUCIOA), codified at RCW 64.90, condominiums created on or after July 27, 2025, carry broad implied warranties. A declarant (and any dealer) impliedly warrants that the units and common elements are suitable for ordinary uses, and that any improvements made by the declarant (or dealer) will be free from defective materials, constructed in accordance with applicable codes, plans, and standards, and built in a workmanlike manner.

Because these statutory implied warranties significantly increase exposure to construction-defect lawsuits, they also drive up insurance premiums for developers. This heightened litigation risk and financial burden is viewed as one of the deterrents to condominium construction in Washington.

From HB 1304 to HB 2304

In 2025, the legislature created a partial workaround. Under RCW 64.90.675, a declarant or dealer could opt out of the implied warranties for certain small-scale projects (such as accessory dwelling units and buildings containing 12 or fewer units and two or fewer stories) by providing an express warranty of quality and express warranty insurance coverage instead.

HB 2304 does not rewrite RCW 64.90.675. Instead, it expands the types of condominium projects to which the express warranty option applies. Under the new law, a developer can opt out of the default implied warranty scheme for new or conversion condominium buildings that contain 12 or fewer units and four or fewer stories.

Conditions for the Opt-Out

To successfully opt out of the implied warranties, the express warranty and insurance coverage must satisfy the requirements of RCW 64.90.675(4)(c), which include:

• Purchaser acknowledgment that the express warranty of quality applies;cour
• Coverage that extends to original unit owners and any subsequent purchaser for defects, and the unit owners’ association for common areas;
• Application to all condominium units and common areas within the building; and
• Minimum coverage periods for workmanship, materials, building systems, and structural defects.

Conclusion

HB 2304 expands the availability of the express warranty framework by allowing more small condominium projects to opt out of Washington’s default implied warranty scheme. The policy rationale behind the new law is that lowering developers’ litigation and insurance exposure will make certain condominium projects more financially viable to build. In turn, this could expand Washington’s housing supply—particularly for more attainable, lower-cost homeownership options. Ultimately, whether the new law results in more condominium development will depend on how developers and insurers respond in practice.