Washington Brokerage Relationships Act (RCW 18.86)
Agency between Washington licensees and the public is set by statute rather than left to common law. This chapter covers RCW 18.86, the duties owed to the parties, and dual agency.
Duties Owed Under RCW 18.86
RCW 18.86 defines the duties a licensee owes. Certain duties are owed to all parties, including reasonable skill and care, honesty and good faith, and disclosure of material facts the licensee knows and that are not apparent. Additional duties, such as loyalty and confidentiality, are owed to the party the licensee represents. The statute largely replaces common-law agency for real estate licensees.
How Agency Is Created
Under RCW 18.86 a licensee is generally presumed to be acting for the party with whom the licensee is working, with the specific relationship determined by the statute's default rules and by any written agreement. Written representation agreements clarify who is represented; absent one, the statute's defaults apply. Clear disclosure prevents confusion about whom the licensee represents.
Dual Agency
A licensee may represent both the buyer and the seller in the same transaction only with the informed consent of both parties after disclosure. A dual agent must not reveal one party's confidential negotiating information to the other and must document consent and the limits on the licensee's duties. A managing broker supervising such a transaction should confirm the disclosures were properly made.