.

 

Not just a handshake…

Get a pen in that prospects hand!

Yes!  the changes to the Law of Agency require that you get a Brokerage Services Agreement signed!  No more assuming who represents who… Get a pen in that prospects hand… not just a handshake!

 

There have been changes made to the Law of Agency that went into effect January 1, 2024.  Many brokers have been working with Brokerage Agreements, but now it is the law.  An agreement must be signed by both parties “as soon as reasonably practicable.”  You need an agreement signed by both parties when you perform “Brokerage Services.”  Do you know the definition of “brokerage Services?”  Here is the link!  Read section 17!

https://app.leg.wa.gov/RCW/default.aspx?cite=18.85.011

The new law requires written brokerage services agreements, improves consumer disclosures, and provides that certain legal duties of brokers apply to all parties in the transaction.

The 5 clockhour Class When are you an Agent covers the issues regarding the new law.  It also includes the pamphlet that is required to provide to the consumers. This is more interesting.

Here is a a copy of the Pamphlet that you can download.

Agency Law Pamphlet effective Jan 24  click to download

Termination of Brokerage Services Agreement

What about terminating a Brokerage Services Agreement?  Some brokers mistakenly believe that the buyer cannot “fire” the agent.  The law is specific as to termination. Yes, either party can terminate with notice.  But, the contractual rights are still in place.

(1) The agency relationships established pursuant to this chapter RCW 18.86 continue until the earliest of the following:
(a) Completion of performance by the broker;
(b) Expiration of the term agreed upon by the parties;
(c) Termination of the relationship by mutual agreement of the parties; or
(d) Termination of the relationship by notice from either party to the other. However, such a termination does not otherwise affect the contractual rights of either party.

Here is the new law as signed by the legislature.  You can see where the changes have been made and additions made.

Brokerage Services Agreement applies to what Clients?

When a seller signs a listing agreement they are signing a Brokerage Services Agreement.  The same goes for a prospective tenant or landlord.  Note, mistakenly, many brokers assume these agreements are only for buyers of real estate which is NOT the case.