Did you know there is a new law in WA that will impact many home buyers as of 1/1/2024? 

As of 1/1/2024, buyers and their chosen real estate brokerage and broker/agents will be required to enter into a written buyer brokerage services agreement as soon as reasonably practical.

Prior to that date, some brokers/agents may have chosen to use agreements with their buyer clients, but it has not been required and if they were used, many times they may have been filled out and signed at the time the buyer was making their first offer for a home.

Why the change? 

A written agreement has been required when a WA real estate brokerage lists a seller’s home for quite some time to lay out expectations and compensation details for the brokerage. The same now applies for buyers. This change is to ensure that buyers (in addition to sellers) understand their chosen firm’s representation and compensation details.

 The required agreement needs to include:

• The term of the agreement
• 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 (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
• Any other agreements between the parties

What this means to you if you plan to buy a home in WA state in the future:

 --When you start discussing buying a home with a broker/agent, we will need to confirm if you have a written agreement with any other brokerage, and if so, what type of agreement it is. This has technically always been the case, but it will be even more important when the new law goes into effect since a buyer brokerage services agreement will be required going forward. We may not be allowed to provide services to you if you already have a written agreement with another brokerage and broker/agent.

 --If we do decide to work together, we will need to have a signed written agreement early in the process. Typically, we will meet to have a buyer consultation to discuss the process first and your goals first, then you can decide what type of written agreement is best for your situation before we move forward. This could be at the time you schedule to see your first home, or we can do it prior to that.

 --As a buyer, you will want to be aware of what you are signing and keep copies (printed or digital) for reference. You don’t want to enter into an exclusive agreement for the same area or home with more than one brokerage or you might end up owing compensation to more than one.

 --If you schedule showings on-line, please read the details of what you are agreeing to. From here out, you are likely signing some kind of brokerage service agreement so be aware of what you are signing. Is it for the specific home you are scheduling to see, or is it an exclusive agreement for all homes in a specific area, or another option? By the way, if you call, email, or text me directly, I can get you set up to tour the home(s) you like at a time convenient for you, and we can discuss what type of service agreement makes the most sense for you. 

 --You should be provided with a “Real Estate Brokerage in Washington” pamphlet to read and go over with your chosen broker/agent before you sign any agreements. This pamphlet describes the types of agencies and what you can expect from your broker/agent with each type.

I hope this helps give you an idea of what the change is and how it impacts you. Whether you are a buyer or a seller and have questions about this new law, I can help. 

Please see my contact details and reach out anytime.