This page describes your legal
rights in dealing with a real estate
broker or salesperson. Please read it
carefully before signing any documents.
The following is only a brief summary of the attached law.
Sec. 1. Definitions. Defines the specific terms used in the law.
Sec. 2. Relationships between Licensees and the Public. States
that a licensee who works with a buyer or tenant represents that
buyer or tenant - unless the licensee is the listing agent, a seller's
subagent, a dual agent, the seller personally or the parties agree
otherwise. Also states that in a transaction involving two different
licensees affiliated with the same broker, the broker is a dual agent
and each licensee solely represents his or her client - unless the
parties agree in writing that both licensees are dual agents.
Sec. 3. Duties of a Licensee Generally. Prescribes the duties that
are owed by all licensees, regardless of who the licensee
represents. Requires disclosure of the licensee's agency
relationship in a specific transaction.
Sec. 4. Duties of a Seller's Agent. Prescribes the additional duties
of a licensee representing the seller or landlord only.
Sec. 5. Duties of a Buyer's Agent. Prescribes the additional duties
of a licensee representing the buyer or tenant only.
Sec. 6. Duties of a Dual Agent. Prescribes the additional duties of
a licensee representing both parties in the same transaction, and
requires the written consent of both parties to the licensee acting as
a dual agent.
Sec. 7. Duration of Agency Relationship. Describes when an
agency relationship begins and ends. Provides that the duties of
accounting and confidentiality continue after the termination of an
agency relationship.
Sec. 8. Compensation. Allows brokers to share compensation with
cooperating brokers. States that payment of compensation does not
necessarily establish an agency relationship. Allows brokers to
receive compensation from more than one party in a transaction
with the parties' consent.
Sec. 9. Vicarious Liability. Eliminates the common law liability of
a party for the conduct of the party's agent or subagent, unless the
agent or subagent is insolvent. Also limits the liability of a broker
for the conduct of a subagent associated with a different broker.
Sec. 10. Imputed Knowledge and Notice. Eliminates the common
law rule that notice to or knowledge
of an agent constitutes notice to or knowledge of the principal.
Sec. 11. Interpretation. This law replaces the fiduciary duties
owed by an agent to a principal under the
common law, to the extent that it conflicts with the common law.
RCW 18.86.010 Sec. 1. Definitions
Unless the context clearly requires otherwise, the definitions
in this section apply throughout this chapter.
1."Agency relationship" means the agency relationship created
under this chapter or by written agreement between a licensee
and a buyer and/or seller relating to the performance of real
estate brokerage services by the licensee.
2."Agent" means a licensee who has entered into an agency
relationship with a buyer or seller.
3."Business opportunity" means and includes a business,
business opportunity, and goodwill of an existing business, or
any one or combination thereof.
4."Buyer" means an actual or prospective purchaser in a real
estate transaction, or an actual or prospective tenant in a real
estate rental or lease transaction, as applicable.
5."Buyer's agent" means a licensee who has entered into an
agency relationship with only the buyer in a real estate
transaction, and includes subagents engaged by a buyer's agent.
6."Confidential information" means information from or
concerning a principal of a licensee that:
a.Was acquired by the licensee during the course of an
agency relationship with the principal;
b.The principal reasonably expects to be kept confidential;
c.The principal has not disclosed or authorized be
disclosed to third parties;
d.Would, if disclosed, operate to the detriment of the
principal; and
e.The principal personally would not be obligated to
disclose to the other party.
7."Dual Agent" means a licensee who has entered into an agency
relationship with both the buyer and seller in the same
transaction.
8."Licensee" means a real estate broker, associate real estate
broker, or real estate salesperson, as those terms are defined
in chapter 18.85 RCW.
9."Material fact" means information that substantially adversely
affects the value of the property or a party's ability to perform
its obligations in a real estate transaction, or operates to
materially impair or defeat the purpose of the transaction. The
fact or suspicion that the property, or any neighboring
property, is or was the site of a murder, suicide or other death,
rape or other sex crime, assault or other violent crime,
robbery or burglary, illegal drug activity, gang-related
activity, political or religious activity, or other act,
occurrence, or use not adversely affecting the physical
condition of or title to the property is not a material fact.
10."Principal" means a buyer or a seller who has entered into an
agency relationship with a licensee.
11."Real estate brokerage services" means the rendering of
services for which a real estate license is required under
chapter 18.85 RCW.
12."Real estate transaction" or "transaction" means an actual or
prospective transaction involving a purchase, sale, option, or
exchange of any interest in real property or a business
opportunity, or a lease or rental of real property. For purposes
of this chapter, a prospective transaction does not exist until a
written offer has been signed by at least one of the parties.
13."Seller" means an actual or prospective seller in a real estate
transaction, or an actual or prospective landlord in a real
estate rental or lease transaction, as applicable.
14."Seller's agent" means a licensee who has entered into an
agency relationship with only the seller in a real estate
transaction, and includes subagents engaged by a seller's
agent.
15."Subagent" means a licensee who is engaged to act on behalf
of a principal by the principal's agent where the principal has
authorized the agent in writing to appoint subagents.
RCW 18.86.020 Sec. 2. Agency Relationship.
1.A licensee who performs real estate brokerage services for a
buyer is a buyer's agent unless the:
a.Licensee has entered into a written agency agreement
with the seller, in which case the licensee is a seller's
agent;
b.Licensee has entered into a subagency agreement with the
seller's agent, in which case the licensee is a seller's
agent;
c.Licensee has entered into a written agency agreement
with both parties, in which case the licensee is a dual
agent;
d.Licensee is the seller or one of the sellers; or
e.Parties agree otherwise in writing after the licensee has
complied with RCW 18.86.030 (1) (f).
2.In a transaction in which different licensees affiliated with the
same broker represent different parties, the broker is a dual
agent, and must obtain the written consent of both parties as
required under section 6 of this act. In such a case, each
licensee shall solely represent the party with whom the
licensee has an agency relationship, unless all parties agree in
writing that both licensees are dual agents.
3.A licensee may work with a party in separate transactions
pursuant to different relationships, including, but not limited
to, representing a party in one transaction and at the same time
not representing that party in a different transaction involving
that party, if the licensee complies with this chapter in
establishing the relationships for each transaction.
RCW 18.86.030 Sec. 3. Duties of Licensee.
1.Regardless of whether the licensee is an agent, a licensee
owes to all parties to whom the licensee renders real estate
brokerage services the following duties, which may not be
waived:
a.To exercise reasonable skill and care;
b.To deal honestly and in good faith;
c.To present all written offers, written notices and other
written communications to and from either party in a
timely manner, regardless of whether the property is
subject to an existing contract for sale or the buyer is
already a party to an existing contract to purchase;
d.To disclose all existing material facts known by the
licensee and not apparent or readily ascertainable to a
party; provided that this subsection shall not be construed
to imply any duty to investigate matters that the licensee
has not agreed to investigate;
e.To account in a timely manner for all money and property
received from or on behalf of either party;
f.To provide a pamphlet on the law of real estate agency in
the form prescribed in RCW 18.86.120 to all parties to
whom the licensee renders real estate brokerage
services, before the party signs an agency agreement with
the licensee, signs an offer in a real estate transaction
handled by the licensee, consents to dual agency, or
waives any rights, under section RCW 18.86.020 (1) (e),
18.86.040 (1) (e), 18.86.050 (1) (e), or 18.86.060 (2) (e)
or (f), whichever occurs earliest; and
g.To disclose in writing to all parties to whom the licensee
renders real estate brokerage services, before the party
signs an offer in a real estate transaction handled by the
licensee, whether the licensee represents the buyer, the
seller, both parties, or neither party. The disclosure shall
be set forth in a separate paragraph entitled "Agency
Disclosure" in the agreement between the buyer and
seller or in a separate writing entitled "Agency
Disclosure".
2.Unless otherwise agreed, a licensee owes no duty to conduct
an independent inspection of the property or to conduct an
independent investigation of either party's financial condition,
and owes no duty to independently verify the accuracy or
completeness of any statement made by either party or by any
source reasonably believed by the licensee to be reliable.
RCW 18.86.040 Sec. 4. Seller's Agent - Duties.
1.Unless additional duties are agreed to in writing signed by a
seller's agent, the duties of a seller's agent are limited to those
set forth in RCW 18.86.030 and the following, which may not
be waived except as expressly set forth in (e) of this
subsection:
a.To be loyal to the seller by taking no action that is
adverse or detrimental to the seller's interest in a
transaction;
b.To timely disclose to the seller any conflicts of interest;
c.To advise the seller to seek expert advice on matters
relating to the transaction that are beyond the agent's
expertise;
d.Not to disclose any confidential information from or
about the seller, except under subpoena or court order,
even after termination of the agency relationship; and
e.Unless otherwise agreed to in writing after the seller's
agent has complied with RCW 18.86.030 (1) (f), to make
a good faith and continuous effort to find a buyer for the
property; except that a seller's agent is not obligated to
seek additional offers to purchase the property while the
property is subject to an existing contract for sale.
2.(a) The showing of properties not owned by the seller to
prospective buyers or the listing of competing properties for
sale by a seller's agent does not in and of itself breach the duty
of loyalty to the seller or create a conflict of interest.
b.The representation of more than one seller by different
licensees affiliated with the same broker in competing
transactions involving the same buyer does not in and of
itself breach the duty of loyalty to the sellers or create a
conflict of interest.
RCW 18.86.050 Sec. 5. Buyer's Agent - Duties.
1.Unless additional duties are agreed to in writing signed by a
buyers agent, the duties of a buyer's agent are limited to those
set forth in RCW 18.86.030 and the following, which may not
be waived except as expressly set forth in (e) of this
subsection:
a.To be loyal to the buyer by taking no action that is
adverse or detrimental to the buyer's interest in a
transaction;
b.To timely disclose to the buyer any conflicts of interest;
c.To advise the buyer to seek expert advise on matters
relating to the transaction that are beyond the agent's
expertise;
d.Not to disclose any confidential information from or
about the buyer, except under subpoena or court order,
even after termination of the agency relationship; and
e.Unless otherwise agreed to in writing after the buyer's
agent has complied with RCW 18.86.030 (1) (f), to make
a good faith and continuous effort to find a property for
the buyer; except that a buyer's agent is not obligated to:
(i) Seek additional properties to purchase while the
buyer is a party to an existing contract to purchase; or (ii)
show properties as to which there is no written
agreement to pay compensation to the buyer's agent.
2.
a.The showing of property in which a buyer is interested to
other prospective buyers by a buyer's agent does not in
and of itself breach the duty of loyalty to the buyer or
create a conflict of interest.
b.The representation of more than one buyer by different
licensees affiliated with the same broker in competing
transactions involving the same property does not in and
of itself breach the duty of loyalty to the buyers or create
a conflict of interest.
RCW 18.86.060 Sec. 6. Dual Agent - Duties.
1.Notwithstanding any other provision of this chapter, a licensee
may act as a dual agent only with the written consent of both
parties to the transaction after the dual agent has complied
with RCW 18.86.030 (1) (f), which consent must include a
statement of the terms of compensation.
2.Unless additional duties are agreed to in writing signed by a
dual agent, the duties of a dual agent are limited to those set
forth in RCW 18.86.030 and the following, which may not be
waived except as expressly set forth in (e) and (f) of this
subsection:
a.To take no action that is adverse or detrimental to either
party's interest in a transaction;
b.To timely disclose to both parties any conflicts of
interest;
c.To advise both parties to seek expert advice on matters
relating to the transaction that are beyond the dual agent's
expertise;
d.Not to disclose any confidential information from or
about either party, except under subpoena or court order,
even after termination of the agency relationship;
e.Unless otherwise agreed to in writing after the dual agent
has complied with RCW 18.86.030 (1) (f), to make a
good faith and continuous effort to find a buyer for the
property; except that a dual agent is not obligated to seek
additional offers to purchase the property while the
property is subject to an existing contract for sale; and
f.Unless otherwise agreed to in writing after the dual agent
has complied with RCW 18.86.030 (1) (f), to make a
good faith and continuous effort to find a property for the
buyer; except that a dual agent is not obligated to: (i)
Seek additional properties to purchase while the buyer is
a party to an existing contract to purchase; or (ii) show
properties as to which there is no written agreement to
pay compensation to the dual agent.
3.
a.The showing of properties not owned by the seller to
prospective buyers or the listing of competing properties
for sale by a dual agent does not in and of itself constitute
action that is adverse or detrimental to the seller or
create a conflict of interest.
b.The representation of more than one seller by different
licensees affiliated with the same broker in competing
transactions involving the same buyer does not in and of
itself constitute action that is adverse or detrimental to
the sellers or create a conflict of interest.
4.
a.The showing of property in which a buyer is interested to
other prospective buyers or the presentation of additional
offers to purchase property while the property is subject
to a transaction by a dual agent does not in and of itself
constitute action that is adverse or detrimental to the
buyer or create a conflict of interest.
b.The representation of more than one buyer by different
licensees affiliated with the same broker in competing
transactions involving the same property does not in and
of itself constitute action that is adverse or detrimental to
the buyers or create a conflict of interest.
RCW 18.86.070 Sec. 7. Duration of Agency Relationship.
1.The agency relationships set forth in this chapter commence at
the time that the licensee undertakes to provide real estate
brokerage services to a principal and continue until the
earliest of the following;
a.Completion of performance by the licensee;
b.Expiration of the term agreed upon by the parties;
c.Termination of the relationship by mutual agreement of
the parties; or
d.Termination of the relationship by notice from either
party to the other. However, such a termination does not
affect the contractual rights of either party.
2.Except as otherwise agreed to in writing, a licensee owes no
further duty after termination of the agency relationship, other
than the duties of:
a.Accounting for all monies and property received during
the relationship; and
b.Not disclosing confidential information.
RCW 18.86.080 Sec. 8. Compensation.
1.In any real estate transaction, the broker's compensation may
be paid by the seller, the buyer, a third party, or by sharing the
compensation between brokers.
2.An agreement to pay or payment of compensation does not
establish an agency relationship between the party who paid
the compensation and the licensee.
3.A seller may agree that a seller's agent may share with another
broker the compensation paid by the seller.
4.A buyer may agree that a buyer's agent may share with another
broker the compensation paid by the buyer.
5.A broker may be compensated by more than one party for real
estate brokerage services in a real estate transaction, if those
parties consent in writing at or before the time of signing an
offer in the transaction.
6.A buyer's agent or dual agent may receive compensation based
on the purchase price without breaching any duty to the buyer.
7.Nothing contained in this chapter negates the requirement that
an agreement authorizing or employing a licensee to sell or
purchase real estate for compensation or a commission be in
writing and signed by the seller or buyer.
RCW 18.86.090 Sec. 9. Vicarious Liability.
1.A principal is not liable for an act, error or omission by an
agent or subagent of the principal arising out of an agency
relationship:
a.unless the principal participated in or authorized the act,
error or omission, or
b.except to the extent that: (i) the principal benefited from
the act, error, or omission; and (ii) the court determines
that it is highly probable that the claimant would be
unable to enforce a judgment against the agent or
subagent.
2.A licensee is not liable for an act, error, or omission of a
subagent under this chapter, unless the licensee participated in
or authorized the act, error or omission. This subsection does
not limit the liability of a real estate broker for an act, error or
omission by an associate real estate broker or real estate
salesperson licensed to that broker.
RCW 18.86.100 Sec. 10. Imputed Knowledge and Notice.
1.Unless otherwise agreed to in writing, a principal does not
have knowledge or notice of any facts known by an agent or
subagent of the principal that are not actually known by the
principal.
2.Unless otherwise agreed to in writing, a licensee does not
have knowledge or notice of any facts known by a subagent
that are not actually known by the licensee. This subsection
does not limit the knowledge imputed to a real estate broker of
any facts known by an associate real estate broker or real
estate salesperson licensed to such broker.
RCW 18.86.110 Sec 11. Application.
This chapter supersedes only the duties of the parties under the
common law, including fiduciary duties of an agent to a
principal, to the extent inconsistent with this chapter. The
common law continues to apply to the parties in all other
respects. This chapter does not affect the duties of a licensee
while engaging in the authorized or unauthorized practice of
law as determined by the courts of this state. This chapter
shall be construed broadly.