NEW Washington state Agency Law resources

To help you better understand legal pressures on the industry and to comply with new agency law requirements, we’re pleased to provide these New Washington Agency Law Resources. This page is meant to give our members insight into the imminent shifts in Washington's agency law and be prepared to implement the provisions of the new law properly. 

Legal Bulletin: 2024 Agency Law Revision and Forms Changes

Significant revisions to Washington’s law governing real estate brokerage relationships (RCW 18.86, the “Agency Law”) become effective on January 1, 2024.  Among other things, the revised Act requires firms to enter written services agreements with buyers as soon as they commence providing real estate brokerage services. (There is an exception to this requirement for buyers who are solely interested in commercial real estate, as defined by Washington law.) 

The revisions, which are set forth in Senate Bill 5191, include:

• Requiring real estate firms to enter into a written brokerage services agreement with a buyer as soon as reasonably practical after commencing real estate brokerage services unless the appointed broker performs real estate brokerage services solely for commercial real estate;
• Changing the term “dual agent” to “limited dual agent” to reflect the limited representation that a broker can provide when representing both the buyer and the seller;
• Requiring specific consent by buyers and sellers to an individual broker acting as a limited dual agent;
• Clarifying that a broker owes certain duties in RCW 18.86.030 to all parties in a transaction;
• Requiring disclosure to all parties of any compensation offered to a firm by another party or another real estate firm; and
• Modernizing the “pamphlet” that brokers must provide to consumers explaining real estate brokerage relationships.

These changes in the law necessitated revisions to several CBA forms, as well as the creation of new forms. “The Law of Agency” pamphlet has been replaced by a new pamphlet, “Real Estate Brokerage in Washington.” Samples of the revised forms and pamphlet are available below and will be published for use in Legal Library Pro on January 1, 2024.

The revisions to the Agency Law apply to both purchase and sale transactions and lease transactions. References to buyers and sellers in the Legal Bulletin generally apply to tenants and landlords.

IMPORTANT: It is critical that you fully understand the information in the Legal Bulletin below. Failure to comply with the revisions could result in financial, legal and/or regulatory issues. Please read the ENTIRE LEGAL BULLETIN.

LEGAL BULLETIN: 2024 Agency Law Revision and Forms Changes

A New and Improved Pamphlet

This pamphlet provides general information about real estate brokerage and summarizes the laws related to real estate brokerage relationships. It describes a real estate broker's duties to the seller/landlord and buyer/tenant. Detailed and complete
information about real estate brokerage relationships is available in chapter 18.86 RCW.

CBA's Real Estate Brokerage in Washington Pamphlet

Between now and January 1, 2024, there will be many educational opportunities, including in-person and online classes offered by CBA and other providers. Brokers are encouraged to take classes early to leave time to consider how their practices and conversations will change when the law changes. DRAFTS of the updated forms (revised services agreements) and the Pamphlet will be available for review and discussion during the classes. The updated forms will be released on January 1, 2024. 

REPLACED FORMS

NEW FORMS

REVISED FORMS

EXISTING AGENCY RELATIONSHIPS AND PENDING TRANSACTIONS

CBA'S AGENCY LAW AND FORMS REVISIONS - JANUARY 2024

UPCOMING CBA LIVE WEBINARS FOR CE CREDIT

Dates:

Wednesday, December 6th

Tuesday, December 12th

Thursday, December 14th

Time: 9:00 a.m. - Noon

Credit: 3 CE Credits

Cost: $39 CBA Members | $69 Non-Members

Location: Live Webinar

The upcoming changes to Washington Agency Law will impact all aspects of how you do business, from agreements with clients to compensation structures. In preparation for the upcoming changes, CBA has revised the Legal Library PRO forms that are affected. We are offering three live webinar classes to help our members understand the revisions to the law and properly execute all required forms. 

We encourage all brokers to take one of the classes to understand how their practices and conversations will change when the law changes. DRAFT versions of the updated forms (revised services agreements) and the pamphlet will be available for review and discussion during the classes. Final forms will be available for use on January 1, 2024.

Don't get caught unprepared … You must understand this critical information to conduct your business on a daily basis!

In this class, you'll learn about:

• Critical revisions to Washington’s Agency Law that go into effect on January 1, 2024. 
• New revisions to select forms in the CBA Legal Library PRO related to the Agency Law change. 
• New forms created in connection with the Agency Law change.  
• How to use the new and revised forms so you will be in compliance with the new law and avoid financial, legal and/or regulatory issues.

Our forms have been carefully prepared by the Commercial Brokers Association's legal counsel and are the industry standard for commercial and investment real estate transactions. CBA's forms are designed to provide protection for brokers who use them by ensuring that changes created by modifications in license law or case law are reflected in the forms.

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