Agency Relationships

Washington Agency Relationships > SB 5191 Terminology Update (effective July 28, 2024): Washington law now uses "limited dual agency" throughout RCW 18.86. The agency disclosure pamphlet is now called "Real Estate Brokerage in Washington" (formerly "Law of Real Estate Agency"). All references below reflect current law. ## Statutory Framework: RCW 18.86 Washington's agency law (RCW Chapter 18.86) is the statutory backbone for all agency relationships in Washington real estate. Unlike the common law agency principles that governed real estate for most of the twentieth century, Washington enacted this statute to clarify exactly who a licensee represents, what duties are owed, and how agency relationships are created and disclosed. Washington recognizes three agency types: 1. Seller's agent: Represents the seller, owes full fiduciary-level duties to the seller, and must deal honestly with the buyer as a third party. 2. Buyer's agent: Represents the buyer, owes full duties to the buyer, and must deal honestly with the seller as a third party. 3. Limited dual agency: Representing both buyer and seller in the same transaction. Permitted in Washington but requires informed written consent from both parties before the limited dual agency relationship is established. Washington does NOT use an intermediary or transaction broker framework — if one brokerage represents both sides, it is a limited dual agent. No intermediary framework: Unlike Texas (which abolished dual agency and replaced it with the intermediary), Washington permits limited dual agency with proper written consent. This is an important state-specific distinction. ## In-House Limited Dual Agency Because most brokers work within a firm, and because a firm's listing or buyer representation agreement creates agency at the firm level, all brokers within the same firm are…