Quick Answer
The real estate transfers. The DSHS license does not — the buyer must qualify for and obtain a new license through the Change of Ownership (CHOW) process before operating. Specialty contracts (Meaningful Day Activities, Expanded Community Services, Specialized Behavior Support) do not transfer either; the buyer must independently qualify and execute new ones. Resident relationships continue, but under the new license once the buyer is approved.
An adult family home sale is two transactions that have to close in step: a real estate purchase and a DSHS licensing process with no fixed timeline. A licensed, operating home typically sells at a premium over the same house as a residence, because the buyer is paying for bed capacity, compliance history, specialty contracts, and referral relationships as well as the building.
A Change of Ownership is DSHS's process for licensing a new provider at an existing adult family home. There is no abbreviated application; the buyer files a complete license application through the DSHS BAAU portal and must meet every current qualification — training, Home Care Aide certification, background check, caregiving hours — regardless of the seller's history.
Use the DSHS Adult Family Home Locator to check licensing status and any limits, enforcement actions, or exemptions in the past three years. Ask the seller directly about ongoing limits and specialty contracts. Review the current WABO checklist against the home; a new building inspection may be required depending on scope.
Any ongoing limits on the license, exemptions, outstanding enforcement actions, and restrictions on the residents the home can accept. These must be posted in the home and disclosed to buyers.
Plan for a longer close than a residential sale. Coordinate the resident transition among seller, buyer, DSHS, and counsel. Work with a broker who understands DSHS requirements and how to structure the real estate and business components.
No. The license is personal to the provider and does not transfer. The buyer cannot operate the home until DSHS issues a new license.
DSHS publishes no fixed timeline. Buyers should complete training, certification, and background checks before or during the purchase contract so the application is ready to file.
About the author: David Stein is a Washington State licensed real estate broker (eXp Realty, license #133972) and a Washington State certified residential appraiser (Stein Appraisal, license #1702080), with more than 20 years of experience in both disciplines. More about David.
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