Buyer Update

buyer update

with

Karla Sullivan

buyer brokers services agreements are here

The real estate market is constantly changing, and the same is true for the laws surrounding it. The state of Washington just started requiring that home buyers sign a Buyer Broker Services Agreement in order to work with a licensed broker.

previously suggested, now required

Although it sounds like a big change, these types of agreements have been in use for a long time — the main difference is that now they are legally mandated. Just like seller agreements, which have long been required, the buyer agreement provides important protections for all parties involved.

protecting you throughout the process

Buyer Broker Services Agreements benefit you a few ways. They protect you from conflicts of interest, require me to follow specific professional guidelines, and provide transparency about my legal duties and compensation. All of this adds up to enhanced clarity at the outset when we work together on your next home purchase.

new agreement, same service

I'm very familiar with the Buyer Broker Services Agreement and its standards. Windermere has always encouraged the use of buyer agency agreements and now they’ll be the norm for all licensed brokers state-wide. By signing a buyer agreement with me, you’ll receive the same superior representation, in-depth market information and skilled advocacy you've always come to expect.

Important Information for Home Buyers

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

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.

The Services agreement with buyers must include:

• The term of the 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

additional information

revised pamphlet

The pamphlet entitled “Real Estate Brokerage in Washington” provides an overview of the revised Agency Law.

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revised agency law

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

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