Statutory Duties

Statutory Duties Under RCW 18.86 ## Two Tiers of Duties RCW 18.86 divides a Washington licensee's duties into two tiers: duties owed to all parties (including parties the broker does not represent) and additional duties owed only to the broker's own client. This two-tier structure is heavily tested because it defines exactly what protection non-represented parties receive. ## Duties Owed to ALL Parties (Including Non-Clients) Regardless of whom the broker represents, Washington brokers owe every party in a transaction: 1. Good faith and honesty — cannot lie or engage in deceptive practices toward any party 2. Present all written offers and counteroffers promptly — cannot "sit on" an offer because it seems too low; the broker's personal opinion of the offer's merit is irrelevant 3. Disclose all material defects actually known to the broker — note the word "actually": brokers are not required to investigate and discover defects, only to disclose those they actually know about 4. Account for all money and property received — cannot misappropriate, mishandle, or fail to account for trust funds ## Additional Duties Owed ONLY to Clients A broker owes their own client the full fiduciary-level obligations: - Loyalty — client's interests above broker's own and above third parties' - Reasonable care and diligence — competent, attentive representation - Disclosure of all material information — goes beyond defects; includes anything that could reasonably affect the client's decision-making (e.g., the seller's urgency, neighborhood development plans, anything the client would want to know) - Advice and counsel — actively help the client understand their choices and consequences - Referral to specialists — if the broker lacks expertise for a particular situation, they must refer the client…