March 24, 2025
Seller’s Agent Obligations in Washington: Statutory Duties Explained
In Washington State, the duties of a seller’s agent are defined by the Real Estate Brokerage Relationships Act (Chapter 18.86 RCW). These statutory obligations ensure that the seller’s interests are protected throughout the real estate transaction. Whether it’s maintaining confidentiality or ensuring continuous efforts to find a buyer, every action is framed by state law.
Core Duties (RCW 18.86.040):
- Loyalty: The agent must prioritize the seller’s interests and avoid any actions that might be detrimental.
- Disclosure of Conflicts of Interest: Promptly inform the seller of any situation where personal interests may conflict with the seller’s benefit.
- Advice on Expertise: Advise the seller to consult experts (e.g., appraisers or legal counsel) for aspects beyond the agent’s area of expertise.
- Confidentiality: Maintain confidentiality regarding the seller’s sensitive information, even after the agency relationship ends, unless legally compelled to disclose.
- Good Faith & Continuous Effort: Continuously work to find a qualified buyer, unless the property is under contract, ensuring that every showing and offer is handled with professional diligence.
General Duties (RCW 18.86.030):
- Exercise Reasonable Skill and Care: Provide services with the competence expected in the profession.
- Honesty and Good Faith: Engage in transparent dealings and uphold integrity across all transactions.
- Presenting Offers: Timely deliver all written offers, notices, and communications to the seller.
- Disclosing Material Facts: Inform the seller of any hidden defects or issues that may affect the property’s value or condition.
- Accounting: Account promptly for all funds or property received on behalf of the seller.
- Agency Law Pamphlet: Provide the “Law of Real Estate Agency” pamphlet to educate the seller about their rights and obligations under state law.
Important Considerations:
- Statutory, Not Fiduciary: Although these duties mirror fiduciary responsibilities, they are strictly defined by statutory law.
- Written Agreements: As of January 1, 2024, written agreements are required for both sellers and buyers to ensure clarity on representation terms.
- Limited Dual Agency: When representing both parties (buyer and seller) in the same transaction—now termed limited dual agency—obtain written consent acknowledging the limitations in advocacy.
- Handling Competing Interests: Showing properties not owned by the seller does not automatically breach loyalty, but it does require careful navigation to avoid conflicts of interest and legal pitfalls.
Practical Application
Consider a scenario where a seller hires an agent to list their property. The agent adheres strictly to the statutory duties: maintaining loyalty by avoiding adverse actions, ensuring all offers and material facts are communicated promptly, and advising the seller to seek specialized advice when needed. This comprehensive approach, combined with proper written agreements and transparent handling of dual agency situations, reduces legal risks and fosters a clear, trust-based relationship between the seller and the agent.
