Dual Agency

Washington Limited Dual Agency > SB 5191 Terminology Update (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 The term "dual agency" is outdated for Washington real estate practice. All forms, disclosures, and firm policies must use "limited dual agency." The agency pamphlet is now called "Real Estate Brokerage in Washington" (formerly "Law of Real Estate Agency"). This change applies to both the wa_re_broker and wa_re_salesperson exams. ## How Limited Dual Agency Works in Washington Limited dual agency — representing both the buyer and seller in the same transaction through one broker or firm — is permitted in Washington but strictly regulated. Because it creates inherent tension with the duty of loyalty (you cannot be fully loyal to two parties with opposing interests), Washington imposes specific requirements and limitations. Threshold requirement: The broker must obtain informed written consent from both the buyer and the seller before the limited dual agency relationship is established. "Before" is critical — consent must come before an offer is written, because once an offer is submitted, confidential negotiation information has been exchanged. ## What Limited Dual Agency Restricts In a limited dual agency, the broker's duties to both parties are curtailed: - Cannot disclose confidential information of one party to the other (seller's bottom line, buyer's maximum price, either party's motivation or urgency) - Cannot provide undivided loyalty to either party — loyalty is inherently divided - Cannot counsel or advise either party in ways that are to the detriment of the other ## What Limited Dual Agency Permits The limited dual agent can still: - Facilitate the transaction honestly - Disclose material defects to both parties - Present…