Important Buyer Agency Updates for 2024

NEW BUYER AGENCY CONTRACT ENHANCES CLARITY FOR BUYERS AND THEIR AGENTS

For years, real estate brokerage firms were only required to enter into written agreements with sellers, not buyers, and brokers always told the buyer, “Don’t worry, the seller pays my commission”.

A lawsuit in Kansas, which was recently settled, presented that the seller was forced into paying the buyer broker commission (by the real estate brokerage) even though the buyer broker worked for the buyer and not the seller.

Starting in 2019, Washington state began addressing this issue in our state laws and has since been following this case very closely.

To that end, beginning on January 1, 2024, the Washington State Agency Law will require real estate firms to enter into a written “brokerage services agreement” with any party the firm represents, both sellers and buyers. This change is to ensure that buyers (in addition to sellers) clearly understand the terms of the firm’s representation and compensation.

All of the terms are outlined in the new Buyer Brokerage Services Agreement contract and include how compensation will be paid. It will be presented and discussed between both the broker and buyer before deciding to move forward together in the home-buying process. It will eliminate any guesswork and encourage a strong work relationship surrounding an incredibly important task.

I am happy to begin implementing this new form of contractual agreement as it will help my clients understand my level of commitment and professionalism, and how I help my clients achieve effective results.

If you’re interested in finding out more about the new contract, feel free to reach out with your questions – I’d be more than happy to talk with you about the positive changes coming in 2024. Here’s a link to the new Washington State Agency Law pamphlet as well as a link to the new Buyer Service Agreement, both for your review.