Washington · owner financing
Washington owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Washington — statute, recording, default remedies, interest caps, and where deals actually happen.
RCW 61.30 (Real Estate Contract Forfeiture Act); RCW 64.04 (recording)
Recordable with the county auditor under RCW 65.08 (recording statutes). The contract or a memorandum should be recorded promptly to give constructive notice; standard recording fees plus excise-tax affidavit on transfer.
Statutory forfeiture available under RCW 61.30 with strict notice procedure: Notice of Intent to Forfeit must be served and recorded, with a 90-day cure period before forfeiture is effective. Seller may alternatively pursue judicial foreclosure or specific performance.
Is owner financing legal in Washington?
Expressly recognized and codified. Washington calls them 'real estate contracts' and has one of the most developed installment-land-contract statutory frameworks in the nation.
How do you record a owner financing agreement in Washington?
Recordable with the county auditor under RCW 65.08 (recording statutes). The contract or a memorandum should be recorded promptly to give constructive notice; standard recording fees plus excise-tax affidavit on transfer.
What happens if the buyer defaults?
Statutory forfeiture available under RCW 61.30 with strict notice procedure: Notice of Intent to Forfeit must be served and recorded, with a 90-day cure period before forfeiture is effective. Seller may alternatively pursue judicial foreclosure or specific performance.
What is the maximum interest rate?
12% per annum or 4 percentage points above the 26-week T-bill auction rate, whichever is higher (RCW 19.52.020). Many seller-financed transactions exempt under retail-installment / commercial exceptions.
What disclosures are required?
Form 17 Seller Disclosure Statement (RCW 64.06) for residential sales; lead-paint federal disclosure; statutory forfeiture notices required upon default.
Who's protected — buyer vs. seller
Buyer protections
90-day cure period under RCW 61.30; recorded forfeiture notice with detailed statutory content; right to redeem before forfeiture is final; right to surplus after sale where judicial foreclosure pursued.
Seller protections
Robust statutory forfeiture remedy that is faster and cheaper than judicial foreclosure; clear notice procedure; ability to retain payments as liquidated damages; alternative judicial foreclosure or specific performance.
Where in the state do these deals happen?
Very common for raw land, rural and agricultural properties east of the Cascades, recreational parcels, and seller-financed homes statewide. One of the most common land-contract states in the U.S.
Washington cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Kendrick v. Davis, 75 Wn.2d 456 (1969); statutory forfeiture cases under RCW 61.30 are voluminous.
Looking at a Washington deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Washington contracts and remedies are fact-specific — consult a licensed Washington real-estate attorney before signing anything.