Key Takeaways
- RCW 18.86 (The Real Estate Brokerage Relationships Act) governs all agency relationships in Washington
- Washington recognizes seller agency, buyer agency, and dual agency relationships
- The pamphlet "The Law of Real Estate Agency" must be provided to all parties at first contact
- A written agency agreement is required to establish a client relationship
- Washington presumes a buyer agency relationship unless a written agreement specifies otherwise
Washington Real Estate Agency Law (RCW 18.86)
Important: This content covers Washington-specific agency law. You should complete the National Real Estate Exam Prep first, as agency concepts are also tested on the national portion.
RCW 18.86, the Real Estate Brokerage Relationships Act, is Washington's primary law governing real estate agency relationships.
Key Agency Terminology
| Term | Definition |
|---|---|
| Principal | The party (buyer or seller) who has an agency relationship with a broker |
| Agent | The broker who has an agency relationship with a principal |
| Firm | The licensed real estate company |
| Client | Party who has signed a written agency agreement |
| Customer | Party not represented but may receive limited services |
Types of Agency Relationships
Seller Agency
The broker represents the seller:
- Owes fiduciary duties to seller
- Must promote seller's interests
- May show buyer properties and perform ministerial acts
Buyer Agency
The broker represents the buyer:
- Owes fiduciary duties to buyer
- Must promote buyer's interests
- Washington presumes buyer agency when working with unrepresented buyers
Dual Agency
The broker represents both buyer and seller in the same transaction:
- Requires written consent from both parties
- Limited ability to advocate for either party
- Must treat both parties honestly and fairly
Critical Point: Washington presumes buyer agency. If a broker works with a buyer without a written agreement specifying otherwise, buyer agency is presumed by law.
Creating Agency Relationships
A client relationship requires:
- Written agreement signed by both broker and client
- Clear identification of the type of representation
- Disclosure of compensation arrangements
- Description of services to be provided
Required Disclosures Under RCW 18.86
The Pamphlet: "The Law of Real Estate Agency"
Washington requires brokers to provide the DOL pamphlet "The Law of Real Estate Agency" to all parties:
| When | To Whom |
|---|---|
| First contact | All prospective buyers and sellers |
| Before services | Anyone receiving real estate services |
| Documentation | Receipt should be acknowledged |
The pamphlet explains:
- Types of agency relationships
- Duties owed by brokers
- How agency relationships are created
- Dual agency implications
Agency Disclosure Timing
| Trigger | Action Required |
|---|---|
| First meeting | Provide agency pamphlet |
| Before showing property | Disclose who you represent |
| Before receiving confidential info | Clarify relationship |
| Before drafting offers | Confirm agency relationship |
Broker Duties Under Washington Law
Duties to All Parties (Regardless of Agency)
All Washington brokers owe these duties to every party:
- Honesty and good faith - Deal honestly with all parties
- Present all offers - Unless instructed otherwise by principal
- Disclose material facts - Known facts affecting the property
- Account for money/documents - Proper handling of all items
- Provide agency pamphlet - To all parties
- Exercise reasonable skill and care
Additional Duties to Principals (Clients)
Brokers owe these additional duties to their principals (clients):
- Loyalty - Act in the principal's best interest
- Confidentiality - Protect confidential information
- Disclosure - Disclose all relevant information to principal
- Obedience - Follow lawful instructions
- Reasonable care and skill - Perform competently
- Accounting - Account for all money and property
What document must a Washington broker provide to all parties at first contact?
In Washington, what agency relationship is presumed when a broker works with a buyer without a written agreement?