This bill adds a new section to chapter 18.86 RCW and amends existing sections to regulate how brokers market residential real estate and to tighten written disclosure and agreement requirements. It prohibits a broker from marketing the sale or lease of residential property to a limited or exclusive group of prospective buyers or brokers unless the property is simultaneously marketed to the general public and all other brokers, except where limiting marketing is reasonably necessary to protect the health or safety of the owner or occupant. The bill clarifies that marketing to the general public does not require an owner to allow physical access to the property. It amends RCW 18.86.031 to make violations of the new rule (and of RCW 18.86.030) a violation of RCW 18.85.361, and it amends RCW 18.86.120 to specify formatting and to incorporate the text of the required agency pamphlet into statute. The bill also specifies definitions and procedural requirements: it defines terms such as agency relationship, limited dual agent (including when limited dual agency arises and that it requires written consent), and short sale (seller proceeds insufficient to cover obligations). It identifies the Department of Licensing as the enforcement agency and lists the covered parties, including brokers, firms, designated and managing brokers, sellers, buyers, landlords, tenants, owners, occupants, other brokers, and the general public. The measure imposes procedural changes for disclosures and written services agreements. The pamphlet must be formatted for easy review with legible font and must be given to all parties to whom the broker renders services and to any unrepresented party. Written services agreements must include term, named broker(s), whether the relationship is exclusive, whether the principal consents to limited dual agency, compensation terms, and other specified items; buyer agreements must be entered before or as soon as reasonably practical after services begin. A firm must have a written services agreement with a party to receive compensation, and services agreements must state compensation amounts and any consents to compensation sharing or payment by more than one party. For short sales, the seller’s firm must disclose that acceptance of less by a mortgagee does not automatically relieve the seller of remaining obligations, including firm compensation. The text does not show the new section’s number, does not include the full text of RCW 18.86.030, and does not include the text of RCW 18.85.361, so enforcement and penalty specifics are not provided here.

If enacted, brokers would no longer be able to quietly limit marketing of homes to a select set of buyers or other brokers unless they simultaneously market the property to the general public and all brokers, and they could only limit marketing further when needed to protect an owner’s or occupant’s health or safety. Brokers and firms will have to provide a statutorily formatted pamphlet to every client and any unrepresented party explaining these rules, use updated written services agreements that include specific terms (duration, named brokers, exclusivity, consent to limited dual agency, compensation details, and timing for buyer agreements), and disclose extra seller risk in short sales; firms also cannot collect compensation unless they have the required written agreement with the party they represent. The people most affected are real estate brokers, firms, and designated/managing brokers who will need to change marketing practices, update forms, train staff, and absorb administrative costs and compliance risk; sellers may lose the option to limit who sees a listing (though they still don’t have to allow physical access), and the Department of Licensing will enforce the rule. How penalties are applied and some implementation details are unclear here because the text references enforcement under RCW 18.85.361 and other sections not included in these extracts.