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Significant revisions to Washington’s law governing real estate brokerage relationships (RCW 18.86, the “Agency Law”) became effective on January 1, 2024.
This email is meant to give COMMERCIAL BROKERS AND AGENTS insight into the recent shifts in Washington's agency law and help them implement the provisions of the new law properly.
If you are a residential broker or work on residential transactions, please see Northwest MLS, Washington REALTORS®, or your local residential board for their specific guidelines.
The most important things to know about the 2024 Washington Agency Law Revision are:
Commercial Transactions: Written services agreements are NOT required for buyers and tenants who are SOLEY interested in commercial real estate, but they are recommended. Commercial real estate is primarily defined as land that has or is zoned for greater than four residential units that isn’t agricultural or timber land.
Compensation Disclosure: Brokers who don’t have a services agreement MUST disclose terms of compensation when representing Buyers or Tenants before the client signs an offer. The easiest and most recommended process is to outline the compensation clearly in a Letter of Intent (LOI), signed by both the Buyer and Seller, or Tenant and Landlord.
Limited Dual Agency: The term "dual agent" has been changed to "limited dual agent" to reflect the limited representation that a broker can provide when representing both a Buyer and Seller. Both the Buyer and the Seller must specifically consent to having a broker act as a limited dual agent.
New Pamphlet: The "Law of Agency Pamphlet" that brokers must provide to consumers explaining real estate brokerage relationships has been modernized and renamed, "Real Estate Brokerage in Washington." A copy from CBA can be found here. Brokers must obtain receipt confirmation from recipients of the pamphlet.
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