> SB 5191 (effective July 28, 2024): Washington law now uses "limited dual agency" throughout RCW 18.86. The term "dual agency" is outdated for Washington real estate practice. The agency pamphlet is now called "Real Estate Brokerage in Washington" (formerly "Law of Real Estate Agency"). Written buyer brokerage service agreements are required before showing residential property (60-day minimum term).
Limited dual agency occurs when one broker — or one real estate firm — represents both the buyer and the seller in the same transaction. This creates an inherent conflict of interest because a broker cannot give undivided loyalty to two parties with opposing interests (one wants to pay as little as possible; the other wants to receive as much as possible).
Washington permits limited dual agency but strictly regulates it under RCW 18.86.
1. Informed written consent from BOTH the buyer and the seller — before the limited dual agency relationship is established 2. Consent must be obtained before an offer is written — once an offer is submitted, confidential negotiation information has been exchanged and retroactive consent is inadequate 3. Both parties must genuinely understand what limited dual agency means and how it reduces the protections they each receive
When two brokers from the same firm represent opposite parties in a transaction, the firm itself becomes a limited dual agent — even though the two brokers do not personally work together on the deal. This is because a firm's listing agreement and buyer representation agreement create agency at the firm level, and all brokers within the firm are on the same "side" as their firm's clients.
Designated agency is one solution: the firm assigns one broker exclusively to the seller and another exclusively to the buyer, limiting the limited dual agency to the firm level while allowing each individual broker to continue providing advocacy for their own client. Both clients must consent, and the firm must maintain information barriers between the two brokers.
The "Real Estate Brokerage in Washington" pamphlet (renamed per SB 5191, effective July 28, 2024; formerly "Law of Real Estate Agency") must be delivered at first substantive contact — the first interaction where the broker and a potential client discuss specific properties, financial qualifications, or representation.
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| Term | Definition | |---|---| | Limited dual agency | One broker or firm representing both buyer and seller; requires informed written consent; per SB 5191 — "dual agency" is outdated WA terminology | | Informed written consent | Both parties must understand implications before signing; required before offer is written | | In-house limited dual agency | Limited dual agency at firm level when two brokers from same firm represent opposite parties | | Designated agency | Firm assigns separate brokers exclusively to each party, limiting limited dual agency to firm level | | "Real Estate Brokerage in Washington" | Agency disclosure pamphlet; renamed per SB 5191 from "Law of Real Estate Agency" | | First substantive contact | Trigger for pamphlet delivery; first discussion of specific properties or representation | | 60-day minimum term | Minimum term for written buyer brokerage service agreements in residential transactions | | Commercial exemption | Written buyer agreements not required for commercial real estate |
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Q1. Under current Washington law (RCW 18.86 as amended by SB 5191), when two brokers from the same firm represent opposite parties, the firm is called a:
A) Transaction broker B) Dual agent C) Limited dual agent D) Neutral intermediary
Answer: C — SB 5191 (effective July 28, 2024) changed WA terminology throughout RCW 18.86. The correct term is "limited dual agency." "Dual agent" is outdated WA terminology. Washington does not use "intermediary" (that is Texas) or "transaction broker" as a formal agency designation.
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Q2. A WA buyer's broker from Sunrise Realty is working with a buyer who wants to make an offer on a Sunrise Realty listing. Before the transaction can proceed, what must happen?
A) The buyer's broker must refer the buyer to another firm B) The DOL must approve the in-house limited dual agency C) Both the seller and the buyer must provide informed written consent to the limited dual agency before the offer is written D) The listing broker must withdraw and allow the buyer's broker to represent both parties
Answer: C — Both parties must provide informed written consent to the in-house limited dual agency before the offer is written. DOL approval is not required. Withdrawal is not mandatory — limited dual agency with proper consent is permitted. The consent must come before the offer, not after.
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Q3. A seller tells her limited dual agent: "I'll accept $20,000 below asking price if they push hard." What must the limited dual agent do?
A) Relay the information to the buyer to help close the deal faster B) Keep the information confidential — limited dual agency prohibits disclosing either party's confidential information to the other party C) Document it in the file and disclose it only if the buyer asks D) Disclose it to the buyer but notify the seller first
Answer: B — In a limited dual agency, neither party's confidential negotiating information may be shared with the other party. The seller's bottom-line price is exactly the type of confidential information the limited dual agent must protect.
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Q4. Under SB 5191 (effective July 28, 2024), a Washington broker must obtain a written buyer brokerage service agreement for residential transactions:
A) At any time before closing B) Before submitting an offer on behalf of the buyer C) Before showing property to the buyer D) Only for exclusive buyer representation arrangements
Answer: C — Written buyer brokerage service agreements are required before showing residential property. This applies regardless of exclusivity. The minimum term is 60 days. Commercial transactions are exempt.
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Q5. The agency disclosure pamphlet that Washington brokers must provide at first substantive contact is now called:
A) Law of Real Estate Agency B) Washington Agency Disclosure Statement C) Real Estate Brokerage in Washington D) Washington Agency and Representation Guide
Answer: C — SB 5191 (effective July 28, 2024) renamed the pamphlet from "Law of Real Estate Agency" to "Real Estate Brokerage in Washington." This name change is testable on the WA state exam.