? n large commercial buildings, excavation next to an existing foundation is ? a very touchy (and expensive) endeavor, and involves some serious inspection ? (before and after) and monitoring of the existing structure. I can't imagine ? it being such a casual job on a residence but I could be wrong.
In my experience, all here in Seattle, with commercial the issue is the duty to maintain horizontal support to an adjacent property- the doctrine called "late support".
In my experience with residential, the units are usually free standing, far enough apart and shallow enough that there isn't significant danger of removing horizontal support.
Obviously, exceptions occur on hills and in medium density multi family, and in those cases your statements are absolutely correct, but for the most part, in many Seattle neighborhoods, you aren't going to disturb your neighbor's land by removing your foundation.
The process is, therefore, quite a bit more casual after an initial inspection.