WA Agency Law

# Washington Agency Law — Quick Reference

> SB 5191 (effective July 28, 2024): WA law now uses "limited dual agency" throughout RCW 18.86. Agency pamphlet renamed to "Real Estate Brokerage in Washington." Written buyer brokerage service agreements required before showing residential property (60-day minimum term).

Core Concepts

Agency Types in Washington

|---|---|---|

Agency Type	Description	WA Specific
Seller's agent (listing agent)	Represents seller; fiduciary to seller	Standard
Buyer's agent	Represents buyer; fiduciary to buyer	Standard
Limited dual agency	Represents both parties in same transaction	ALLOWED with written consent — "dual agency" is outdated WA terminology per SB 5191
Designated agency	Firm appoints separate agents to represent each party in in-house deal	Resolves most limited dual agency conflicts

Washington does NOT use "intermediary" — that is Texas terminology. WA uses limited dual agency (with written consent).

RCW 18.86 — Two-Tier Duty System

Duties to ALL parties (including non-clients):

Deal honestly and in good faith

Present all written offers/counteroffers promptly

Disclose all known material defects

Account for all funds received

Additional duties to CLIENT ONLY:

Loyalty (client's interests above agent's own)

Disclose conflicts of interest

Advise client to seek expert advice on matters beyond agent's expertise

Keep client information CONFIDENTIAL — this duty survives the transaction

Provide client with all information material to the transaction

Use reasonable care and diligence

Agency Disclosure

• When: "First substantive contact" with a buyer or seller

• What: "Real Estate Brokerage in Washington" pamphlet (RCW 18.86.030) — renamed per SB 5191 from "Law of Real Estate Agency"

• Exemptions: Responding to basic inquiries, open houses (if no substantive discussion)

Limited Dual Agency Rules

• Written informed consent required from BOTH parties before presenting an offer

• Limited dual agent cannot: advocate for either party, disclose confidential info of one party to the other, share motivation or pricing limits

• Alternative: designated agency (firm assigns separate agents to each party)

Confidentiality — Key Exam Point

• Confidentiality of client information survives the end of the transaction

• A listing broker who represented the seller CANNOT disclose the seller's motivation to a future buyer even after the sale closes

Common Exam Traps

• All-parties vs. client-only duties — material defect disclosure is owed to ALL parties; loyalty and confidentiality are client-only

• First substantive contact — timing trigger for agency disclosure; not "when an offer is written"

• Limited dual agency requires WRITTEN consent — verbal consent is insufficient

• Confidentiality survives the transaction — this is a frequently tested exception to the "transaction ends, duties end" assumption

• WA = limited dual agency; TX = intermediary — don't confuse the two states' terminology

• Form 17 (Seller Disclosure): Seller's independent statutory duty; broker has separate independent disclosure duty for material defects they actually know about