WA Real Estate Law

WASHINGTON STATE

REAL ESTATE LAW

On January 1, 2024, significant revisions were implemented in Washington's real estate laws.

These changes to the "Agency Law" (RCW 18.86) represent a pivotal moment in our state's dedication to transparency, consumer protection, and modernization.

The Substitute Senate Bill 5191 provides the complete details of the revised Agency. Access it by clicking on the following link: https://bit.ly/substituteSenateBill5191

Important Information for Home Buyers and Sellers

For years, real estate brokerage firms were only required to enter into written agreements with sellers, not buyers. Beginning January 1, 2024, the Agency Law now requires firms to enter into a written "brokerage services agreement" with any party the firm represents, both sellers and buyers. This change ensures that buyers (in addition to sellers) clearly understand the terms of the firm's representation and compensation.

The services agreement with buyers must include:

The term of agreement (with a default term of 60 days and an option for a longer term).
The name of the broker appointed to be the buyer's agent.
Whether the agency relationship is exclusive or non-exclusive.
Whether the buyer consents to the individual broker representing both the buyer and the seller in the same transaction (referred to as "limited dual agency".
Whether the buyer consents to the broker's designated broker/managing broker's limited dual agency.
The amount the firm will be compensated and who will pay the compensation, and any other agreements between the parties

Please feel free to watch the short video and/or download the provided document titled "New Homebuyer Protection" discusses these updates.