Case Summary — Seller Disclosure Misrepresentation

1. Parties

2. Transaction Timeline

3. The Core Issue

Continental House is an 8-story, 42-unit condominium building constructed in 1970 at 100 Ward Street, Seattle. After closing on Unit 606, the Buyers discovered that the bedroom ceilings contain asbestos-containing material (ACM) — a known hazardous material commonly found in buildings of this era as textured "popcorn" ceiling coatings.

The Seller completed Form 17 on 02/23/2026 — more than two weeks before mutual acceptance. The Seller's own disclosure package included an attachment titled "The Continental House — Questions & Answers," a document prepared by property manager Teresa Brown of CWD Group. That document contains the following verbatim exchange:

This document was part of the disclosure package the Seller himself signed and delivered. Additionally, the Seller is believed to have purchased Unit 606 approximately five years prior (circa 2020–2021), meaning this same Q&A — or a substantially identical version — would very likely have been part of his own disclosure package at the time of his purchase. If so, the Seller had knowledge of the asbestos condition from the moment he acquired the unit. Section 7E of Form 17 asks explicitly:

Section 7E asks explicitly:

Notably, even the PSA's buyer disclosure waiver states that buyers may not waive receipt of the Environmental section of Form 17 if the answer would be "yes" — meaning this section carries heightened legal weight regardless of the inspection waiver signed.

4. Key Legal Questions

The Buyers are not necessarily seeking litigation, but wish to understand their legal position. The central questions are:

• Did the Seller have actual knowledge of asbestos in Unit 606 at the time he completed Form 17 on 02/23/2026?
• Does the Seller's "NO" answer to Section 7E constitute negligent or intentional misrepresentation under RCW 64.06?
• Does the Inspection Waiver (Form 35W) affect the Buyers' ability to bring a claim, given the PSA's carve-out for Environmental disclosures?
• What damages could the Buyers potentially recover — e.g., cost of abatement, diminution in value, attorney's fees?
• What is the statute of limitations under RCW 64.06 and applicable common law misrepresentation claims?

5. Key Documents Available for Review

• Form 17 Seller Disclosure Statement (signed by Seller 02/23/2026) — Section 7E "NO" to asbestos
• Condominium Purchase and Sale Agreement (Form 28) — dated 03/12/2026
• Inspection Waiver Addendum (Form 35W) — Pre-Inspection box checked, signed 03/13/2026
• Counteroffer Addendum (Form 36) — purchase price $890,000, accepted 03/15/2026
• Pre-closing unit photos (April 11, 2026) — clearly show textured popcorn ceilings throughout the unit
• HOA Rules & Regulations — Hard Surface Flooring Policy and Asbestos Abatement approval requirements
• Board Meeting Minutes (last 2 years) — no mention of asbestos anywhere in the building (43 pages reviewed)
• Kent Engineering Plumbing Assessment (Jan 2024) — confirms building constructed 1970; Phase 2 recommended
• Reserve Study (2025) — full building financial and capital assessment
• Buyers' Unit 606 Project Plan — documents abatement need in both bedrooms (created post-closing, April 2026)
• Continental House Declaration and Bylaws
• ALTA Settlement Statement — confirms closing date April 23, 2026

6. What We Do Not Yet Have

The following items may be critical to establishing the Seller's prior knowledge and are being investigated:

• Formal asbestos lab test or industrial hygienist report confirming ACM in Unit 606 — date and commissioning party unknown; this is the single most important missing document
• Building permit history for Unit 606 — showing any prior ceiling work during Seller's ownership
• Contractor communications or work orders related to ceilings in Unit 606
• Seller's own purchase disclosure documents (circa 2020–2021) — if obtainable, these would likely show the same Continental House Q&A confirming asbestos was provided to the Seller when he bought the unit, directly establishing prior knowledge
• Answer to: "What updates did Elad do to the unit?" — asked of buyer's broker but not yet answered

7. Additional Context

The Buyers' immediate goal is to move into Unit 606 as their primary residence. They are planning a renovation including hardwood flooring installation throughout, bathroom retiling, and kitchen updates. The asbestos abatement in both bedrooms is a required prerequisite before any of this work can proceed, and also requires separate HOA Board approval under the Continental House Rules and Regulations (Large Project category).

The Buyers are not seeking to unwind the transaction. Their primary concern is understanding whether the Seller bears financial responsibility for some or all of the abatement costs, given his signed disclosure that no environmental hazards — including asbestos — were present in the unit.

8. Attorney Consultation — Outcome

Prepared by Tony Byorick  |  tbbryan76@gmail.com  |  April 2026
All referenced documents are available for attorney review upon request.