Washington's New Agency Law: Your Complete Guide to Written Services Agreements

Under RCW 18.86.010, a "brokerage services agreement" — or simply a "services agreement" — is a written agreement between a real estate firm and a principal (a buyer or seller) that establishes the agency relationship and its terms.

Importantly, the law defines "buyer" to include tenants and "seller" to include landlords. If you're helping someone lease a property, these rules apply to you too.

When Is It Required?

Here's the key timing rule from RCW 18.86.020(2)(a):

Notice what the statute does not say. It doesn't say "before the first showing" or "before the first phone call." It uses a reasonableness standard — which gives some flexibility but also creates risk if you wait too long.

What Must Be in the Agreement?

Under RCW 18.86.020(2)(b), every services agreement must include these minimum elements:

1. 01

   Term of the Agreement

   Every services agreement must state how long it lasts. For buyer agreements specifically, the law requires:

   • A default term of 60 days
   • An option for a longer term if the buyer agrees

   The statute does not explicitly authorize a term shorter than 60 days for buyers. When in doubt, use the statutory default or seek legal guidance.

2. 02

   Named Appointed Broker

   The agreement must identify the specific appointed broker by name — not just the firm. The individual agent's name must appear in the document.

3. 03

   Exclusive vs. Nonexclusive Representation

   The agreement must state whether the representation is exclusive or nonexclusive. For buyer agreements, the law specifically requires checkbox options so the buyer actively selects their preference — a consumer protection measure that prevents exclusivity from being buried in fine print.

4. 04

   Limited Dual Agency Consent (Separately Initialed)

   If the appointed broker may represent both sides of a transaction, the agreement must include consent that is:

   • Separately initialed by the principal — not just signed as part of the whole document
   • Accompanied by an acknowledgment of the limits on advocacy
   • Referenced to RCW 18.86.060 (the limited dual agency statute)
5. 05

   Same-Firm Dual Agency Consent

   The agreement must also address scenarios where the designated broker or supervising managing broker may act as a limited dual agent — such as when two brokers at the same firm represent opposite sides of a transaction.

Compensation Requirements: RCW 18.86.080

Want to get paid? Then your services agreement needs to explicitly cover compensation. Under RCW 18.86.080(7), to receive compensation for brokerage services, the firm's agreement must include:

• The amount of compensation the principal agrees to pay
• The principal's consent (or terms) regarding compensation sharing between firms
• The principal's consent (or terms) regarding compensation from more than one party
• Any other agreements between the parties

The "Will You Show?" Requirement

For buyer services agreements, there's an additional requirement that catches many agents off guard:

This is directly tied to the post-NAR settlement landscape. Buyers need to know upfront: if a listing doesn't offer buyer-broker compensation, will their agent still show it? This must be addressed in writing.

Pamphlet and Disclosure Timing

The reform also tightened rules around the agency pamphlet (required under RCW 18.86.120) and related disclosures. Here's the updated timing under RCW 18.86.030(1)(f)–(g):

Agency Pamphlet Delivery

• For represented parties: Provide the pamphlet and obtain acknowledgment as soon as reasonably practical, but before signing the services agreement
• For unrepresented parties: Provide the pamphlet before signing an offer, or as soon as reasonably practical

Agency Role & Compensation Disclosure at Offer Stage

Before the principal signs an offer — or as soon as reasonably practical, but before mutual agreement — the broker must disclose in writing:

• Their agency role (buyer's agent, seller's agent, or limited dual agent) in a separate "Agency Disclosure"
• Any terms of compensation offered by a party or firm to another firm

The Commercial Real Estate Exception

There's one notable carve-out: RCW 18.86.020(3) states that a services agreement is not required when a broker works as a buyer's agent solely for commercial real estate. Instead, commercial buyer representation can use an alternate written "Compensation Disclosure" method under RCW 18.86.080(8), with its own specific timing and format rules.

What Happens If You Don't Comply?

Non-compliance isn't just a paperwork issue — it's a licensing issue. Under RCW 18.86.031, violations of the agency law chapter are deemed violations of RCW 18.85.361, which governs DOL disciplinary actions. The Department of Licensing can take action against your license for:

• Failing to have a written services agreement
• Missing required elements (term, exclusivity checkboxes, dual agency initials)
• Not delivering the pamphlet with proper timing
• Inadequate compensation disclosures

With DOL audits increasingly focused on these new requirements, the risk of discipline is real.

Your Compliance Checklist

Use this before every new client relationship:

Frequently Asked Questions

Looking Ahead

Washington's agency law reform is still relatively new, and the industry is still adapting. The DOL's 2026–2027 CORE curriculum continues to include this as a primary topic, signaling that regulators expect ongoing education and compliance improvement.

Watch for potential legislative updates — bills have been introduced in the 2026 session that could further amend RCW 18.86. Stay current by monitoring the Washington Legislature's RCW 18.86 page and DOL announcements.

The bottom line? Written services agreements aren't just paperwork — they're the foundation of every compliant agency relationship in Washington. Master them now, and you'll be ahead of the curve when DOL comes knocking.