Washington State Agency Law
Effective January 1, 2024, Washington State implemented significant updates to the Law of Real Estate Agency (RCW 18.86). These changes are designed to provide greater transparency and consumer protection for both buyers and sellers.
Key Changes for Buyers
Written Agreements Required
Real estate brokers are now legally required to enter into a written Brokerage Services Agreement with a buyer before providing any real estate brokerage services, including touring homes. This agreement must clearly outline the services provided, the term of the agreement, and the compensation structure.
Transparency in Compensation
The agreement must state exactly how the buyer’s broker will be compensated. While sellers may still offer to pay the buyer’s broker commission, the buyer is ultimately responsible for ensuring the broker is paid the amount agreed upon in the Brokerage Services Agreement.
Key Changes for Sellers
Clearer Listing Agreements
Listing agreements must now explicitly separate the compensation paid to the listing broker from any compensation offered to the buyer’s broker. Sellers have full control over whether to offer compensation to a buyer’s broker and, if so, how much.
Limited Dual Agency
The revised law clarifies the duties of a Limited Dual Agent (a broker representing both the buyer and seller in the same transaction). Both parties must consent in writing to limited dual agency. Note: Justin Cicero operates with a strict No Dual Agency policy to ensure your interests are always exclusively represented.
Duties of a Real Estate Broker
Under Washington law, a broker owes the following duties to all parties in a transaction:
- To exercise reasonable skill and care
- To deal honestly and in good faith
- To present all written offers and communications in a timely manner
- To disclose all existing material facts known by the broker and not apparent or readily ascertainable to a party
- To account in a timely manner for all money and property received
- To provide a pamphlet on the law of real estate agency
This summary is for informational purposes only and does not constitute legal advice. For the complete text of the law, please refer to RCW 18.86 or consult with a qualified real estate attorney.