Short answer
New construction means new problems — not no problems. In Greater Seattle's infill townhome market, buyers often assume that a freshly built unit eliminates the risk categories of older homes. That assumption is partially correct and partially misleading. New construction eliminates lead paint, aging sewer pipe, and galvanized plumbing. It introduces a different set of risks: a developer-controlled HOA with an unproven reserve fund, a punch list of incomplete items that may or may not get addressed post-closing, builder warranty periods that have specific limits and claim procedures, and a public offering statement that requires careful review before the rescission period expires. Understanding what "new" does and does not protect you from is the work a buyer should do before signing.
Why Seattle's infill townhome market creates specific risks
Greater Seattle's housing market has produced a significant number of infill townhome developments — attached or semi-attached units built on subdivided lots in established neighborhoods, often in small clusters of 3–8 units. These properties are sold as new construction, frequently as condominiums or in planned unit development structures.
Infill construction has site-specific challenges: tight lots, shared walls with existing structures, stormwater management on small footprints, and sewer lateral connections that tie into aging street infrastructure. The construction quality of small infill projects is not uniform. A buyer purchasing one of six townhomes in a small development built by a local developer has a different risk profile than a buyer in a larger planned community with more established construction management.
The HOA is new — and that matters
One of the most underappreciated risks in new construction is the early-stage HOA. When a townhome development first opens, the HOA is typically controlled by the developer rather than the unit owners. The developer sets the initial budget, dues levels, and reserve contributions. That initial budget may underestimate long-term maintenance costs, partly because there is no track record of how the property will perform and partly because a lower HOA dues figure makes units easier to market.
After a defined period or after a threshold of units sells, the HOA transitions to owner control. At that point, the new owner board may discover that reserves are thin, the initial budget did not anticipate specific maintenance costs, or the dues need to increase to fund the property's actual needs.
For buyers, this means: a low HOA dues figure on a brand-new development is not a guarantee of future dues levels. Review the initial HOA budget, the reserve study (if one exists at the time of purchase), and the proposed dues schedule. Ask how long the developer will control the HOA and what the transition process looks like.
Public offering statement: what to review and when
For new construction condominiums and common interest communities in Washington, buyers are entitled to receive a public offering statement before closing. This document is different from a resale certificate — it is a developer disclosure document covering the proposed governance structure, budget, reserve information, construction warranty terms, use restrictions, known hazards, and known construction conditions.
Under Washington law (RCW 64.34 and RCW 64.90), buyers of new construction condominiums have a rescission right after receiving the public offering statement. The specific period and conditions depend on the applicable statute and the contract terms. Buyers should confirm when the statement will be delivered, what their rescission period is, and what happens if the statement is not delivered before key milestones. Ask your buyer's agent and attorney to walk you through this timing before you go under contract, not after.
Builder warranty periods and claim procedures
Washington has warranty requirements for new construction condominium communities under Chapter 64.35 RCW, which sets out qualified warranty terms. Under RCW 64.35.305, a qualified warranty typically includes a two-year warranty on materials and labor. RCW 64.35.315 establishes a 10-year structural defect warranty. For common interest communities under the Washington Uniform Common Interest Ownership Act (WUCIOA), RCW 64.90.680 addresses construction defect warranty claims.
Buyers should understand:
- What warranty the builder is providing, and whether it is a qualified warranty under Washington statute or a private builder warranty with different terms
- How to submit a warranty claim — most programs require written notice
- Whether the warranty is transferable if you sell within the warranty period
- The exclusions: appliances, cosmetic items, settling cracks within tolerance, and damage caused by owner modification are commonly excluded
Chapter 64.50 RCW also establishes pre-litigation procedures for construction defect claims — before filing a lawsuit, buyers must deliver written notice to the builder at least 45 days in advance and provide the builder an opportunity to respond. This is not something most buyers think about at closing, but it is part of the legal framework that governs what happens if a significant defect surfaces after you move in.
Independent inspection on new construction: worth doing
Many new construction buyers skip independent inspection because "everything is new." This is a mistake.
In Greater Seattle's infill townhome market, a pre-drywall inspection — conducted by an independent inspector before interior finishes close up the walls and systems — can identify framing, insulation, and rough-in issues that are expensive to address after the fact. After the building is finished, a final independent inspection before closing can identify items that did not meet the plans or specifications.
A general home inspection on new construction also confirms that the punch list items from the builder have actually been completed, and that the systems are functioning as installed. Builder punch lists are sometimes completed quickly and incompletely before closing. An independent inspector provides a more objective second review.
Sewer scope is still relevant
A new sewer lateral connecting to an old main does not automatically mean a risk-free sewer. The connection to the public main is a critical point that can fail or have construction-related issues. For infill townhomes in Seattle, where the development connects into aging street sewer infrastructure, ask whether a sewer scope was done during or after construction. A scope during construction — before walls and finishes are in — is easier and less intrusive; after construction, it should still be performed if one was not done.
Ownership form and what that means for documents
Infill townhomes in Seattle are frequently structured as condominiums even if they look like fee-simple houses. This means:
- You will receive a public offering statement, not a standard resale certificate at purchase
- Your lender will need to review the project for condo approval, which affects financing availability
- Future buyers at resale will go through the same condo project review process
Confirm with your agent and lender whether the property is fee-simple or condo-form before making an offer. This affects what documents you will receive, the timeline for reviewing them, and how your lender processes the loan.
Questions to ask before going under contract on new construction
| Question | Why it matters |
|---|---|
| Is this fee-simple or condo-form ownership? | Determines documents, lender review, and financing options |
| When will the public offering statement be delivered? | Starts the rescission clock; needs to happen before binding commitment |
| Who controls the HOA, and when does control transfer to owners? | Developer-controlled period affects budget reliability |
| What does the initial HOA budget include, and is there a reserve study? | Thin initial reserves are common; verify before committing |
| What warranty does the builder provide, and is it a qualified warranty under RCW 64.35? | Determines your remedies if defects surface |
| Has an independent inspection been done, and is a pre-drywall inspection still possible? | Last opportunity for pre-close access to systems before finishes |
| Was a sewer scope done after connection to the street main? | New lateral to an old main is still a risk point |
| Is the development complete, or are other units still under construction? | Ongoing construction near your unit creates noise, access, and risk |