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Dawn Kenworthy | December 13, 2023 -
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Law of Agency Pamphlet
Dawn Kenworthy | November 07, 2023
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Benefit to Buyers?
On January 1, 2024 important changes to the Law of Agency will go into effect. These changes were in large part due to pressure from real estate professionals in WA state wanting to elevate transparency and offer more consumer protection surrounding buyer representation.
Senate Bill 5191 was voted into law, requiring adjustments in how brokers operate when working with buyers. The agency law will require firms to enter into a written brokerage services agreement with any party the firm represents. That means both sellers AND buyers. For years firms were only required to enter into written listing contracts with sellers, but not agreements with buyers, who usually roam the real estate market bouncing from broker to broker without any real commitment of loyalty to any one broker.
This change is to ensure that buyers clearly understand the terms of a firm's representation and compensation and even their ability to negotiate compensation. The written agreement must include the length of the term buyer and broker are committed to each other, the name of the appointed agent, whether the agreement is exclusive or non-exclusive, consent or not for limited dual agency, and the amount of compensation and who will be the payee of that compensation.
In the past, the level of commitment a buyer and broker had for each other has been ambiguous. The confusion that was often created by that uncertainty has even become a point of contention in many cases. Confused or willingly aloof buyers often dumped a broker quickly when they didn't get the attention they expected because the broker had no written commitment from the buyer for compensation of their services.
In practice, this new law forces brokers to create written agreements with buyers in order to get paid, which may seem to consumers (on the surface) to only benefit brokers. However, buyers will still be allowed to be "willingly aloof" if they desire a non-exclusive contract. But in theory and in practice, when buyers sign an exclusive representation agreement, the broker will be more willing to dig deeper for listings, drive farther for showings and be much more committed in their efforts for buyers because they will fear less that their efforts, time and money spent are not in vain.
Gone are the days when an uncommitted buyer can call for a quick showing of a property without any expectation of commitment. Brokers will NOT be allowed by law to provide such services without written services agreement between buyer(s), broker and broker firm.
Sample Mortgage Rates
For 7/02/2024
30 Year Fixed |
6.75% |
15 Year Fixed |
6.25% |
5/6 ARM |
7.5% |
For general informational purposes only. Actual rates available to you will depend on many factors including lender, income, credit, location, and property value. Contact a mortgage broker to find out what programs are available to you.
Mortgage calculator estimates are provided by Windermere Real Estate and are intended for information use only. Your payments may be higher or lower and all loans are subject to credit approval.