Guest Post Written By Alex Nakamoto
Have you recently been approached by your real estate broker to sign a buyer agency agreement? Starting January 1st, 2024, WA state revised Chapter 18.86 RCW to require brokers representing a buyer in a residential transaction to have a signed written brokerage services agreement.
Up until recently, it was only required that sellers have a brokerage services agreement signed with their broker in order to list their home on the NWMLS.
Why the sudden change? If you’ve been following the news in other real estate markets around the country you’ve likely read about numerous class action lawsuits surrounding real estate broker commissions.
In an effort to create more transparency into how brokers get paid, WA state has decided to require brokers to disclose the fees they charge in order to represent a buyer.
In many cases, sellers offer a commission to a broker who represents a willing and able buyer on the purchase of their property. However, it is not a requirement. With the new laws it makes it so that a buyer will be able to discuss and negotiate their broker’s compensation rate, prior to enlisting their help into finding a new property.
The service agreement isn’t actually a new thing. It has actually been around for several years! However, not many brokers utilized these agreements and many times buyers were left wondering how their broker was paid. In fact, in my first real estate transaction I had no idea if my agent was getting paid or if I would be receiving a bill in the mail months later!
So don’t be surprised when your broker breaks out the buyer agency agreement at your next meeting. In fact, the law states that the agreement should be signed “as soon as reasonably practical after…commencing real estate broker services”. This means before you even go out touring homes you should expect to have a discussion with your broker about their services agreement.
Alex specializes in residential real estate in King County, WA. Visit his website, check out his YouTube channel or visit his instagram for tons of great real estate market insight.
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