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WA Agency Law

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WA AGENCY LAW CHEAT SHEET

Three Agency Types (RCW 18.86)

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Key Difference: Washington permits dual agency with informed written consent from BOTH parties. (Unlike Texas intermediary framework)

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In-House Dual Agency

When same firm = 2+ brokers representing opposite parties → firm becomes dual agent
  • Requires written consent from both parties BEFORE transaction proceeds
  • Both seller & buyer must consent

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Agency Pamphlet Delivery ("Law of Real Estate Agency")

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First Substantive Contact = First interaction discussing:

  • Specific properties
  • Financial qualifications
  • Matters suggesting agency relationship forming

Proof: Keep signed receipt in file

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Duties: Two-Tier Structure

Duties to ALL Parties (Non-Clients Included)

✓ Good faith & honesty ✓ Present all written offers/counteroffers promptly (cannot withhold) ✓ Disclose material defects actually known (not required to investigate) ✓ Account for all money/property properly

Duties to CLIENT ONLY (Fiduciary)

Loyalty — client interest first ✓ Reasonable care & diligenceFull material disclosure — anything affecting decision (urgency, dev. plans, etc.) ✓ Advice & counselReferral to specialists — if broker lacks expertise ✓ CONFIDENTIALITYsurvives end of agency relationship with NO TIME LIMIT

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High-Yield Rules

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Frequently Confused Pairs

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AgencyRepresentsFiduciary Duties ToHonesty To
Seller's AgentSellerSellerBuyer (non-client)
Buyer's AgentBuyerBuyerSeller (non-client)
Dual AgentBoth Buyer & SellerBothBoth
WhenWhereWhoException
First substantive contactAll partiesAll brokersParty has own attorney (RCW 18.86.030(2))
RuleApplication
Confidentiality survivesCannot share former client's info (price willing to pay, desperation, etc.) to future clients/parties — ever
"Actually known" = no duty to investigateBroker liable for defects they know about; not liable for unknown defects
Offer presentation is mandatoryBroker cannot reject low offers; must present all written offers promptly
Dual agency requires consent BEFORECannot proceed with transaction if parties not yet informed & consenting
First substantive contact triggers pamphletCannot delay delivery; must occur at first substantive contact
WA (RCW 18.86)Texas (Intermediary)
Permits dual agency with written consentAbolished dual agency; uses neutral intermediary
Dual agent may give adviceIntermediary must remain neutral (no advice on price/strategy)
No "intermediary" title in WATexas requires intermediary designation & different consent
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Quick Decision Tree: Do I Owe This Duty?

  • Honesty + good faith → Everyone
  • Present all offers → Everyone
  • Disclose known defects → Everyone
  • Loyalty + full disclosure + confidentiality → Client only
  • Confidentiality survives ending → Yes (no expiration)
  • Aligned to the Washington DOL broker exam outline.

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