New Agency Laws For 2024

Dear clients, as of January 1, 2024 major changes to the real estate laws in Washington state will go into effect. The intention is to elevate the level of transparency and consumer protection surrounding buyer representation.

What is Changing?
For years, real estate brokerage firms were only required to enter into written agreements with sellers, not buyers. Now the State will require real estate 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.

Key Revisions
The services agreement with buyers must include:

The term of the agreement (how long the buyer and broker are committed to working together).
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 firm and agents representing both the buyer and the seller in the same transaction (referred to as “limited dual agency”).
The amount the firm will be compensated and who will pay the compensation.
Any other agreements between the parties.

What Does This Mean For You?
For Buyers:
Home buyers are now required to enter into a Buyer Broker Services Agreement before your broker provides real estate services – with the key revisions provided above. Additionally, buyers now have the right to request their broker to filter listings, ensuring they are not shown properties with compensation rates below their agreed terms.

For Sellers:
Home sellers are able to negotiate the compensation rate they offer to a buyer’s broker. Furthermore, buyers can now influence the listing process by requesting their broker to filter out listings that do not align with their compensation agreement.

I welcome these changes I see them as a benefit to my clients and our industry. The clarity these agreements provide will lead to fewer surprises, stronger bonds, and higher efficiency. If you have any questions about these changes, please do not hesitate to give me a call.

Sincerely,
Joni Sharrah – (206) 228-2392