In a significant move to streamline the leasing process, Washington State has amended its notary requirements for long-term leases. As of June 6, 2024, a pivotal change brought by SSB 5840 will take effect, altering how leases longer than one year are handled. This update to RCW 64.04.010 marks a shift towards greater efficiency and less bureaucracy for both landlords and tenants.
The Current Requirement
Under existing law, any lease agreement in Washington State that extends beyond one year must be acknowledged by a notary. This mandate, while ensuring the authenticity and legality of lease documents, has often been viewed as a cumbersome step, adding unnecessary complexity and delays to the leasing process.
What Changes on June 6, 2024?
With the passage of SSB 5840, the Washington legislature has agreed to modify this requirement. Effective June 6, 2024, the notarization of leases will no longer be required unless the lease, or a memorandum of the lease, is to be recorded. This means that for most lease agreements, the need for a notary's acknowledgment will be eliminated, simplifying the process for both parties involved.
Practical Implications of the New Law
Simplified Lease Execution: Landlords and tenants can now execute leases of more than one year without the additional step of finding and paying for a notary, unless they plan to record the lease.
Flexibility and Convenience: The change provides greater flexibility and convenience, particularly benefiting those in remote or rural areas where access to notary services might be limited.
Updated Lease Forms: In response to this legislative update, the Commercial Brokers Association (CBA) lease forms is planning to include a new note on their notary pages informing parties that acknowledgment is required only if they intend to record the lease or a memorandum of it.
Transition Period Considerations
It's important to note that this change does not retroactively apply to leases entered into before June 6, 2024. Any lease agreements with terms longer than one year, executed prior to this date, must still adhere to the current notary requirement. Therefore, landlords and tenants who enter(ed) into such leases before the new law takes effect should ensure they comply with the existing regulations to avoid any legal complications.
Conclusion
The revision to RCW 64.04.010 under SSB 5840 represents a positive development for the Washington leasing market. By removing the notary requirement for most long-term leases, the state is fostering a more efficient and accessible environment for lease transactions. This change underscores the legislature's commitment to reducing unnecessary bureaucratic hurdles and supporting the needs of both property owners and renters.
As we approach June 6, 2024, it is crucial for all parties involved in leasing to familiarize themselves with the new regulations and update their practices accordingly. The simplification of lease acknowledgment requirements is a welcome improvement, promising a smoother and more straightforward leasing process in Washington State.
While SSB 5840 is intended to simplify commercial leases, leasing is still complicated and constantly changing. If you have questions about your lease, or anything real estate related, be sure to reach out to the team at Holmquist & Gardiner at Holmquist + Gardiner | Real Estate Lawyer in Seattle, Washington (lawhg.net).