The bill seeks to reform Washington State's real estate agency law by instituting mandatory written brokerage services agreements and enhancing consumer disclosures. It requires real estate firms to establish a services agreement with the principal before or shortly after a broker begins providing services, detailing essential elements such as the agreement's term, the appointed broker, and the nature of the agency relationship. The bill introduces a definition for "brokerage services agreement" and clarifies that brokers have legal duties to all parties in a transaction, not just the principal. Significant amendments include the removal of provisions that allowed agency relationships to be formed without a written agreement and the introduction of new broker duties, such as timely disclosures and accounting for all received money and property.

Furthermore, the bill revises the requirements for compensation agreements, mandating that services agreements specify compensation terms and allowing for exceptions in certain situations, such as broker price opinions or referrals. It also clarifies the responsibilities of limited dual agents, emphasizing the need for written consent when a broker represents both buyer and seller. The bill outlines the duties of brokers to maintain honesty, skill, and timely communication while disclosing material facts and ensuring confidentiality. These changes aim to improve transparency and accountability in real estate transactions, with the new regulations set to take effect on January 1, 2024.

Statutes affected:
Original Bill: 18.86.010, 18.86.020, 18.86.030, 18.86.040, 18.86.050, 18.86.060, 18.86.070, 18.86.080, 18.86.090, 18.86.100, 18.86.120
Substitute Bill: 18.86.010, 18.86.020, 18.86.030, 18.86.040, 18.86.050, 18.86.060, 18.86.070, 18.86.080, 18.86.090, 18.86.100, 18.86.120
Bill as Passed Legislature: 18.86.010, 18.86.020, 18.86.030, 18.86.040, 18.86.050, 18.86.060, 18.86.070, 18.86.080, 18.86.090, 18.86.100, 18.86.120
Session Law: 18.86.010, 18.86.020, 18.86.030, 18.86.040, 18.86.050, 18.86.060, 18.86.070, 18.86.080, 18.86.090, 18.86.100, 18.86.120