> SB 5191 (effective July 28, 2024): Major update to RCW 18.86. Key changes: (1) "limited dual agency" replaces "dual agency" as the statutory term; (2) agency pamphlet renamed to "Real Estate Brokerage in Washington"; (3) written buyer brokerage service agreements required before showing residential property; (4) 60-day minimum buyer agreement term. These are testable distinctions on the WA state exam.
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Washington's agency law is codified at RCW Chapter 18.86. Unlike the common law fiduciary duties framework that still governs agency in many states, Washington uses a statutory duties framework — specific duties defined by statute, organized into two tiers based on whether a party is a client or a third party.
This statutory framework replaced common-law fiduciary duties for residential real estate transactions. Do not apply a common-law "loyalty, obedience, confidentiality, accounting, reasonable care" framework to WA agency law questions — apply the RCW 18.86 statutory structure instead.
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| Agency Type | Who is Represented | WA-Specific Notes | |---|---|---| | Seller's agent | The seller | Full statutory duties to seller; honesty duties to buyer | | Buyer's agent | The buyer | Full statutory duties to buyer; honesty duties to seller | | Limited dual agency | Both buyer and seller | Permitted with informed written consent of both parties before offer is written; "dual agency" is outdated WA terminology per SB 5191 |
Washington does NOT use "intermediary" — that is Texas terminology. Washington does NOT use "transaction broker" as a formal agency type. In Washington, if a firm represents both parties, it is a limited dual agent.
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These duties protect everyone in the transaction, not just the broker's own client:
1. Good faith and honesty — the broker cannot lie to or deceive any party 2. Present all written offers and counteroffers promptly — even low offers must be presented; a broker cannot "sit on" an offer 3. Disclose all material defects actually known to the broker — the word "actually" is important: brokers disclose what they know, but are not required to investigate; "actually known" is the standard 4. Account for all money and property received — no misappropriation or mishandling of funds
These are the heightened duties owed exclusively to the broker's own client:
1. Loyalty — place the client's interests above the broker's own and above third parties 2. Reasonable care and diligence — competent, attentive representation 3. Disclosure of material information — go beyond defects; disclose anything material to the client's decisions 4. Advice and counsel — actively help the client understand their choices 5. Refer to experts — recommend specialists when the matter exceeds the broker's expertise 6. Confidentiality — keep client information confidential; this duty survives the end of the transaction permanently
> Exam trap: Confidentiality does NOT end at closing. A broker who represented a buyer cannot disclose that buyer's negotiating position to a future seller, even years after the transaction closed.
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What "first substantive contact" looks like: A buyer at an open house discusses their budget, whether they need to sell their current home, and asks about this specific property — that is first substantive contact. The broker should be prepared to deliver the pamphlet.
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SB 5191 (effective July 28, 2024) made written buyer agreements mandatory for residential transactions in Washington:
| Requirement | Detail | |---|---| | When required | Before showing residential property to the buyer | | Minimum term | 60 days (WA-specific; NAR Settlement does not specify a minimum) | | Required elements | Exclusivity choice, limited dual agency consent option, broker's name, compensation ceiling | | Commercial exception | NOT required for commercial real estate; commercial buyers may waive in writing |
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Washington's SB 5191 (effective July 28, 2024) preceded the NAR Settlement (effective August 17, 2024) by about 8 months. The two requirements layer on each other:
| Requirement | Source | Detail | |---|---|---| | Written buyer agreement before touring | SB 5191 (WA law) + NAR Settlement | Both require this; WA law adds 60-day minimum term | | MLS compensation offers prohibited | NAR Settlement | Buyer agent compensation cannot be offered through MLS | | "Limited dual agency" terminology | SB 5191 | WA-specific; applies to WA exam questions; national exam uses "dual agency" generically | | Agency pamphlet renamed | SB 5191 | "Real Estate Brokerage in Washington" is the current WA pamphlet name |
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| Fact | Value | |---|---| | SB 5191 effective date | July 28, 2024 | | Pamphlet current name | "Real Estate Brokerage in Washington" | | Written buyer agreement required | Before showing residential property | | Minimum buyer agreement term | 60 days | | Commercial exception | Written buyer agreement NOT required | | Confidentiality duty | Survives end of transaction permanently | | Pamphlet delivery timing | First substantive contact | | Pamphlet attorney exemption | RCW 18.86.030(2) |
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Q1. Washington's RCW 18.86 establishes a two-tier duty system. Which of the following duties is owed to ALL parties in a transaction, including non-clients?
A) Loyalty B) Confidentiality C) Disclosure of all material defects actually known to the broker D) Active advice and counsel
Answer: C — Disclosing material defects actually known to the broker is a Tier 1 duty owed to all parties. Loyalty, confidentiality, and active advice and counsel are Tier 2 duties owed only to the broker's own client.
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Q2. A buyer's agent in Washington represented a buyer who purchased a home for $380,000. The buyer had told the agent her maximum was $410,000. Six months later, the agent is asked to list the same home when the buyer resells. Which of the following is TRUE?
A) Confidentiality expired at closing; the agent may disclose the former buyer's maximum to a new seller B) The agent's duty of confidentiality survives the transaction; the buyer's maximum price may never be disclosed C) The information may be disclosed only if the new seller is also the agent's client D) The agent must obtain DOL approval before disclosing any information from a prior transaction
Answer: B — Under RCW 18.86, the duty of confidentiality survives the end of the agency relationship permanently. The buyer's negotiating information remains confidential even after closing and regardless of subsequent representations.
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Q3. Under SB 5191, what is the minimum term for a written buyer brokerage service agreement for a residential real estate transaction in Washington?
A) 30 days B) 45 days C) 60 days D) 90 days
Answer: C — SB 5191 (effective July 28, 2024) established a 60-day minimum term for written buyer brokerage service agreements in residential transactions. This is a WA-specific requirement; the NAR Settlement does not specify a minimum term. The commercial exemption allows commercial buyers to waive the written agreement requirement entirely.
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Q4. The current name of the agency disclosure pamphlet that Washington brokers must deliver at first substantive contact is:
A) Law of Real Estate Agency B) Washington Brokerage Disclosure C) Agency Relationship Disclosure Statement D) Real Estate Brokerage in Washington
Answer: D — SB 5191 (effective July 28, 2024) renamed the pamphlet from "Law of Real Estate Agency" to "Real Estate Brokerage in Washington." Brokers must deliver this pamphlet at first substantive contact with a buyer or seller.
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Q5. A Washington buyer's agent is showing a property listed by a broker from the same firm. Before proceeding with the transaction, the firm must:
A) Withdraw from representing the buyer and refer the buyer to another firm B) Obtain DOL approval for the in-house limited dual agency C) Get informed written consent from both the seller and the buyer before the offer is written D) Have the designated broker personally take over representation of one of the parties
Answer: C — When two brokers from the same firm represent opposite parties, the firm becomes a limited dual agent. Both clients must provide informed written consent before the transaction proceeds — specifically before the offer is written. DOL approval is not required. Withdrawal and designated broker takeover are not mandatory.