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As the real estate industry continues to evolve, so do the laws governing it. Washington State has seen several major changes in recent years, including the elimination of the requirement to offer buyer broker compensation to list a property and the introduction of a law making the compensation offered visible to the public.
In 2022, new laws were introduced to ensure that the offer of buyer broker compensation is separate from the offer to the seller’s broker, and the Northwest Multiple Listing Service increased transparency by including the amount of compensation in the purchase and sale agreement. Additionally, buyers are now required to sign a contract, ensuring that the selection of their representation is a deliberate choice.
Starting January 1, 2024, brokers representing buyers in residential transactions must promptly enter into a written brokerage service agreement, ensuring that buyers have a clear understanding of the scope of representation, associated costs, and payment modalities before agents provide any real estate services.
What do these changes mean?
These changes have a limited impact on sellers, with the primary alteration being that agents may present a Seller Brokerage Service Agreement earlier than previously practiced. For buyers, they can expect to make an early commitment to a Buyers broker and receive an agency agreement before any services are rendered. It’s important to review the agreement thoroughly and understand the procedures for canceling the buyer-broker agreement.
At Windermere, we respect client autonomy and empower buyers to terminate the agency relationship at any time. Our reputable agents provide a cancellation document or instructions upfront, ensuring clients can make an informed decision without concerns about being bound if expectations are not met.
As the real estate industry continues to evolve, so do the laws governing it. Washington State has seen several major changes in recent years, including the elimination of the requirement to offer buyer broker compensation to list a property and the introduction of a law making the compensation offered visible to the public.
In 2022, new laws were introduced to ensure that the offer of buyer broker compensation is separate from the offer to the seller’s broker, and the Northwest Multiple Listing Service increased transparency by including the amount of compensation in the purchase and sale agreement. Additionally, buyers are now required to sign a contract, ensuring that the selection of their representation is a deliberate choice.
Starting January 1, 2024, brokers representing buyers in residential transactions must promptly enter into a written brokerage service agreement, ensuring that buyers have a clear understanding of the scope of representation, associated costs, and payment modalities before agents provide any real estate services.
These changes have a limited impact on sellers, with the primary alteration being that agents may present a Seller Brokerage Service Agreement earlier than previously practiced. For buyers, they can expect to make an early commitment to a Buyers broker and receive an agency agreement before any services are rendered. It’s important to review the agreement thoroughly and understand the procedures for canceling the buyer-broker agreement.
At Windermere, we respect client autonomy and empower buyers to terminate the agency relationship at any time. Our reputable agents provide a cancellation document or instructions upfront, ensuring clients can make an informed decision without concerns about being bound if expectations are not met.
Questions about this topic? Reach out to us, we would love to address your concerns.
