Why this matters
Since January 1, 2024, Washington's real estate brokerage relationships law, RCW 18.86, has required a written services agreement between a buyer and the brokerage representing them. The agreement must be in place before, or as soon as reasonably practical after, the broker begins providing real estate brokerage services to the buyer. In practice, that often means you'll see one early, sometimes before or around your first tour.
It's a good change for buyers: it puts the relationship, the services, and the compensation in writing up front. This guide explains what's in it. It isn't legal advice; for that, talk with a Washington real estate attorney.
What the agreement must include
Under the law, a buyer services agreement must address, among other things:
- The term: how long the agreement lasts. The law sets a default term for buyer agreements, with the option to choose a longer one.
- The appointed broker: the specific broker who represents you.
- Exclusive or nonexclusive: the buyer chooses, using checkbox options.
- Limited dual agency consent: whether you consent to your broker, or your broker's supervising brokers, acting as a limited dual agent in certain situations, with separate initials.
- Compensation: the amount you agree to pay the firm, whether compensation can be shared or paid by other parties, and whether the broker will show you homes where no one else has offered to pay compensation.
Read the statute directly at RCW 18.86. Most Seattle-area brokers use the Northwest Multiple Listing Service buyer agreement form, which is written to address these requirements.
Exclusive vs. nonexclusive
In an exclusive relationship, you agree to work with one brokerage for the term, and the agreement explains what happens if you buy a home through someone else during that time. A nonexclusive relationship gives you more flexibility, and the agreement explains how compensation works if more than one brokerage helps you. Neither is right for everyone. Ask how each choice affects you, especially if you've already toured homes with another broker.
How buyer's broker compensation works
Compensation is negotiable. Your agreement states what you agree the brokerage will be paid. A seller or the listing firm may offer to pay some or all of it, and in that case it may reduce or cover what you owe. If there's no such offer, or it's less than your agreement states, the difference may be your responsibility, unless you negotiate a seller credit or another arrangement as part of your offer.
A good broker will explain this before you tour, help you see how compensation is being handled for each home, and help you factor it into your offer strategy. If anything is unclear, ask before you sign.
Limited dual agency, in plain English
Limited dual agency happens when the same broker, or two brokers at the same firm, represent both the buyer and the seller in one transaction. Washington law allows it only with the written consent of both parties, and a limited dual agent can't advocate for one side to the other's detriment. You can say no. If you're unsure, ask how often it comes up and what would happen in that situation.
Questions to ask before you sign
- What services will you provide, and how will we communicate?
- What's the term, and can we shorten or end the agreement if it isn't working?
- Exclusive or nonexclusive: what are the practical differences for me?
- What compensation am I agreeing to, and how will you handle homes where the seller isn't offering compensation?
- Will you show me homes regardless of the compensation offered?
- How do you handle limited dual agency situations?
- Does the agreement cover only certain areas or property types?
How I approach buyer agreements
I go through the agreement with every buyer before they sign, explain each choice, and answer questions in writing if that's helpful. My goal is that you never feel surprised by how the relationship or compensation works.
Next steps
See where the agreement fits in the buying process, and read how much cash you need to buy for how compensation can affect your budget. Then request a free consult and we'll review an agreement together, with no obligation to sign.
This guide is general information, not legal, tax, or financial advice, and details can change. Information is deemed reliable but not guaranteed; please verify anything important for your situation.
Loomis Hamilton is a real estate broker with McConnell Group who helps home buyers, including many first-time buyers, across Seattle and the greater Seattle area. MLS ID WA 138027.
(425) 516-2041 · l.hamilton@mcconnellgroup.com · Contact page