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As I’m sure many of you have seen in the media, our industry got some fairly shocking news this week out of Missouri. The industry is nowhere near knowing the final outcome of this week’s events. The verdict has already been appealed by the defendants and that process could take years. While news like this creates confusion for our industry and our clients, we believe the best way forward is to focus on what we can control. We will continue to serve our clients’ best interests. We will continue our long-standing support of our communities. We will continue our stellar professionalism. And we will continue to strive to be the best in the industry.
For reference at the local level, I’m stating facts & timelines in short form. If you haven’t yet taken a 3 hour CE class on upcoming Agency Statute changes – it’s time to do so. It’s time for everyone to dig in and really “get” this moment in our industry. I will do everything in my wheelhouse to have you/us prepared for the Agency Law changes. Summary – it’s been a long time coming. These major changes in the Law of Agency will elevate even further the level of transparency and consumer protection surrounding representation.
Cliff notes to timelines on the NWMLS changes for reference:
October 2019
NWMLS published the amount of compensation the seller offers to pay a broker representing the buyer as part of the listing.
NWMLS eliminated the requirement that a seller offer compensation to the buyer’s broker.
October 2022
The compensation the seller offers to the buyer broker was stated on the first page of the NWMLS purchase and sale agreement, with an opportunity for the compensation to be accepted by the buyer and the buyer’s broker or modified by the parties in an addendum to the agreement.
The compensation the seller offers to the buyer broker became a direct offer determined by the seller – rather than commission sharing between the two brokerage firms.
The NWMLS listing agreement provided options for broker compensation to address the role of the listing broker and buyer broker in the transaction.
The NWMLS buyer representation agreements offered alternatives for buyers and their broker for compensation that depend on the terms of the listing.
Coming soon – January 2024
The Agency Statute, Chapter 18.86 RCW, was amended as follows:
Buyer brokers will be required to have a brokerage services agreement with buyers (and sellers);
Brokerage service agreements must disclose the terms of broker compensation, including any compensation sharing and compensation received by more than one party;
Brokers must disclose in writing any compensation offered by a party or real estate firm to a real estate firm representing another party; and
Brokers are required to disclose whether they agree to show properties if there is no offer of broker compensation.
@windermereco.seattle we are focused on helping to educate the consumer as well – link here.
Control what we can control. Stick to the facts. Prepare & educate ourselves for the amended Agency Statute. Continue to serve our clients’ best interests. Continue our long-standing support of our communities. Continue our stellar professionalism. Continue to strive to be the best in the industry. These areas are not new for us; it has always been who we are. #WeAreWindermere
