Washington Contracts — Quick Reference

Core Concepts

NWMLS Forms (vs. Texas TREC)

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Mutual Acceptance (Effective Date)

• Definition: Both parties signed AND delivery of signed contract to other party/agent

• Significance: Triggers ALL contingency periods and deadlines

• Trap: Signing date ≠ mutual acceptance date if delivery hasn't occurred

Earnest Money Rules

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Financing Contingency (Form 22A)

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Inspection Contingency (Form 35)

|---|---| "As-is" clause: Seller will not repair. Does NOT eliminate: Form 17 duty, broker disclosure duty, or inspection contingency (unless explicitly waived).

REET (Real Estate Excise Tax)

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Aspect	Washington	Texas
Form source	NWMLS (voluntary; industry standard)	TREC (state-mandated)
Mandatory?	No state mandate; NWMLS forms are standard practice	Yes — TREC promulgated forms mandatory for licensees
Primary form	NWMLS Form 21 (Residential P&S)	TREC One to Four Family Residential
Inspection	NWMLS Form 35	Paragraph 7 of TREC contract
Financing	NWMLS Form 22A	Paragraph 3 of TREC contract
Appraisal	NWMLS Form 22AA	Addendum for Sale of Other Property
Rule	Detail
Deposit deadline	By mutual acceptance date (or as specified)
Trust account	Must deposit within 1 business day of receipt
Disputed earnest money	Written mutual release OR interpleader within 20 days of written demand
Holder	Listing firm (trust account) or closing/escrow agent
Term	Detail
Specifies	Loan type, amount, max rate, max fees
Buyer protection	May terminate if financing not available on Form 22A terms
Good faith required	Buyer must genuinely attempt to obtain financing
Appraisal gap	NOT covered by Form 22A alone; need Form 22AA
Buyer Option	Outcome
Accept	Remove contingency; proceed to close
Submit Inspection Notice	Request repairs, credits, or price reduction
Terminate	Unconditional right during inspection period; earnest money returned
Price Bracket	Rate
Up to $525,000	1.10%
$525,001–$1,525,000	1.28%
$1,525,001–$3,025,000	2.75%
Over $3,025,000	3.00%

Paid by: Seller Calculation: Graduated (apply each rate only to the amount in that bracket — like income taxes) Quick example: $700,000 sale = ($525,000 × 1.10%) + ($175,000 × 1.28%) = $5,775 + $2,240 = $8,015

Property Tax Proration

• WA taxes paid in arrears → seller owes buyer credit at closing

• Formula: Annual tax ÷ 365 × seller's days of ownership

• Seller's days: January 1 through day before closing

Common Exam Traps

• Mutual acceptance ≠ signing date — delivery is required

• 1 business day for earnest money deposit in trust account (not 3, not 5)

• 20 days to file interpleader after written demand for disputed earnest money

• Unconditional termination right during inspection period — no reason needed

• As-is ≠ no-disclosure — seller still must complete Form 17 honestly; broker still has independent disclosure duty

• REET = graduated, paid by seller — many students apply a flat rate; it's bracketed like income tax

• Form 22AA (appraisal) is separate from Form 22A (financing) — low appraisal is not automatically a Form 22A financing failure