Revisions to the Real Estate Agency Law

Effective January 1, 2024, the statute in Washington that governs real estate brokerage relationships (RCW 18.86) – otherwise known as the “Agency Law” – will be significantly revised. 

The revisions modernize the 25-year-old law, provide additional transparency and consumer protections, and acknowledge the importance of buyer representation.

Key Revisions

Northwest Multiple Listing Service (NWMLS) has been extremely proactive in making changes to its rules and policies to provide more transparency to consumers.

• 2019 eliminated rules requiring that buyer broker compensation be offered in order to list a property
• 2019 made the buyer broker compensation offered in the listing viewable in the public facing portion of the listing
• 2022 made the offer of buyer broker compensation separate and distinct from the offer to the seller’s broker
• 2022 included the amount of buyer broker compensation in the purchase and sale agreement so there is complete transparency within the transaction

For years, real estate brokerage firms were only required to enter into written agreements with sellers, not buyers. Beginning on January 1, 2024, the Agency Law will require firms to enter into a written “brokerage services agreement” with any party the firm represents, both sellers and buyers. 

This change is to ensure that buyers (in addition to sellers) clearly understand the terms of the firm’s representation and compensation.

Additional Information

There are other changes to the law that provide additional consumer protections related to the duties that brokers owe to all parties in a transaction.

Revised Pamphlet: The pamphlet entitled “Real Estate Brokerage in WA” provides an overview of the revised Agency Law.

Revised Agency Law: Substitute Senate Bill 5191 sets forth the revised Agency Law in its entirety.

--Lella Norberg/Windermere RE Shoreline
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