2.1 Washington Real Estate Agency Law (RCW 18.86)

RCW 18.86 and the 2024 Rewrite

RCW 18.86, the Real Estate Brokerage Relationships Act, is Washington's statute controlling who a broker represents and what they owe. Senate Bill 5191 rewrote large parts of this chapter effective January 1, 2024 — the biggest change since 1996. The state exam tests the current law, so memorize the post-2024 terminology. Note the key term shift: the Department of Licensing (DOL) licenses brokers and managing brokers; Washington abolished the old "salesperson" title in 2010, so all licensees in 18.86 are simply "brokers."

Key Agency Terminology

What Changed in 2024

1. Buyer agreements are now mandatory. A broker rendering services to a buyer must sign a written brokerage services agreement "as soon as reasonably practicable." Before 2024 only seller listings had to be written.
2. A residential buyer agreement term cannot be shorter than 60 days, and the buyer must be allowed to choose exclusive or nonexclusive representation.
3. "Dual agency" was renamed "limited dual agency," and consent must be initialed by the represented party.
4. The old "The Law of Real Estate Agency" pamphlet was replaced by **"Real Estate Brokerage in Washington."

Critical trap: Older study materials say Washington "presumes" buyer agency. After 2024 a buyer relationship is created by the required written agreement, not by presumption — do not pick "presumed buyer agency" on the current exam.

Creating an Agency Relationship

An agency relationship is created when a buyer or seller and a firm sign a brokerage services agreement. RCW 18.86.020 lists the elements a residential buyer agreement must contain to be enforceable:

A firm representing a seller signs a listing agreement; a firm representing a buyer signs a buyer brokerage services agreement. Either side may be exclusive (one firm only) or nonexclusive.

Statutory Duties

Duties Owed to ALL Parties (RCW 18.86.030)

Every Washington broker owes these to both the principal and the other side:

1. Reasonable skill and care
2. Honesty and good faith
3. Present all written offers and notices in a timely manner, even after an offer is accepted
4. Disclose all existing material facts the broker knows that are not apparent or readily ascertainable
5. Account for all money and property received
6. Provide the pamphlet "Real Estate Brokerage in Washington"
7. Disclose the agency relationship in the purchase and sale agreement

Additional Duties Owed ONLY to the Principal (RCW 18.86.040 / .050)

• Loyalty — promote the principal's interests in good faith
• Confidentiality — protect the principal's confidential information indefinitely
• Full disclosure of all known facts material to the transaction
• Obedience to lawful instructions
• Timely accounting of all money and property

Exam tip: A broker is not required to investigate matters outside the scope of the agreement, conduct an independent property inspection, or verify a third party's statements unless the agreement says so.

Worked Scenario

A broker meets an unrepresented buyer at an open house in March 2026. The buyer asks the broker to write an offer. Before doing anything, the broker must give the buyer the "Real Estate Brokerage in Washington" pamphlet. To represent the buyer, the broker must sign a written buyer brokerage services agreement with a term of at least 60 days and let the buyer pick exclusive or nonexclusive.

If the buyer refuses to sign, the broker may still write the offer but treats the buyer as a customer — owed only the duties to all parties (honesty, presenting offers, disclosing known material facts), and the broker is in effect still working for the seller unless agency is otherwise confirmed.

How Agency Relationships Terminate

After termination, the duty of confidentiality survives indefinitely — a broker can never reveal a former principal's confidential information, even years later. The duties of loyalty and obedience, by contrast, end with the relationship.