Spring 2024
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Washington Agency Law Overhaul: Brokerage Services Agreements Required as of January 1, 2024
Effective January 1, 2024, Washington became the first state in the country to require real estate brokers to enter into a written brokerage services agreement with every client — buyer or seller — before, or as soon as reasonably practical after, providing brokerage services. The change was enacted through SSB 5399, which amended Washington's Real Estate Brokerage Relationships Act under RCW 18.86.
The mandatory agreement must spell out the term of the relationship, whether the representation is exclusive or non-exclusive, and the rate and source of broker compensation. Brokers must also deliver the updated Real Estate Agency Pamphlet to consumers before the agreement is signed — not after the first showing, as the old rule allowed. Subsequent rulemaking at the Real Estate Commission, with a hearing held May 23, 2024 and final rule changes taking effect July 14, 2024, implemented the operational detail.
For day-to-day practice, this means broker intake conversations now look very different: every consumer relationship starts with a written contract, not an implied one. Firms should audit their intake checklists, listing presentation scripts, and CRM templates to make sure the pamphlet delivery and signature workflow happens before any substantive service is rendered. Seattle Agent Magazine's overview of the changes is a useful starting point; the Department of Licensing publishes the official guidance on its News and Updates for Real Estate Brokers page.