Real estate/exclusive market

AN ACT Relating to prohibiting real estate brokers from marketing 1
residential properties to an exclusive group of prospective buyers or 2
real estate brokers, unless the residential property is also 3
concurrently marketed to the general public and other real estate 4
brokers, except as reasonably necessary to protect the health or 5
safety of the owner or occupant; amending RCW 18.86.031, 18.86.120, 6
and 49.60.222; and adding a new section to chapter 18.86 RCW.7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8
NEW SECTION. Sec. 1. A new section is added to chapter 18.86 9
RCW to read as follows: 10
A broker may not market the sale or lease of residential real 11
estate to a limited or exclusive group of prospective buyers or 12
brokers, or any combination thereof, unless the real estate 13
is concurrently marketed to the general public and all other brokers, 14
except as reasonably necessary to protect the health or safety of the 15
owner or occupant. 16
Sec. 2. RCW 18.86.031 and 2013 c 58 s 4 are each amended to read 17
as follows: 18
A violation of either RCW 18.86.030 or section 1 of this act is a 19
violation of RCW 18.85.361. 20
S-3470.1
SENATE BILL 6091
State of Washington 69th Legislature 2026 Regular Session
By Senators Liias, Gildon, Bateman, Alvarado, Braun, Chapman,
Hasegawa, Lovelett, Lovick, MacEwen, Nobles, Riccelli, Saldaña,
Salomon, Shewmake, Short, Warnick, and Wellman
Read first time 01/13/26. Referred to Committee on Housing.
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Sec. 3. RCW 18.86.120 and 2023 c 318 s 11 are each amended to 1
read as follows: 2
The pamphlet required under RCW 18.86.030(1)(f) shall be 3
formatted so it can be easily reviewed by a buyer or seller, 4
including a legible font and font size. The pamphlet shall be in the 5
following form: 6
Real Estate Brokerage in Washington7
Introduction8
This pamphlet provides general information about real estate 9
brokerage and summarizes the laws related to real estate brokerage 10
relationships. It describes a real estate broker's duties to the 11
seller/landlord and buyer/tenant. Detailed and complete information 12
about real estate brokerage relationships is available in chapter 13
18.86 RCW. 14
If you have any questions about the information in this pamphlet, 15
contact your broker or the designated broker of your broker's firm.16
Licensing and Supervision of Brokers17
To provide real estate brokerage services in Washington, a broker 18
must be licensed under chapter 18.85 RCW and licensed with a real 19
estate firm, which also must be licensed. Each real estate firm has a 20
designated broker who is responsible for supervising the brokers 21
licensed with the firm. Some firms may have branch offices that are 22
supervised by a branch manager and some firms may delegate certain 23
supervisory duties to one or more managing brokers.24
The Washington State Department of Licensing is responsible for 25
enforcing all laws and rules relating to the conduct of real estate 26
firms and brokers. 27
Agency Relationship28
In an agency relationship, a broker is referred to as an "agent" and 29
the seller/landlord and buyer/tenant is referred to as the 30
"principal." For simplicity, in this pamphlet, seller includes 31
landlord, and buyer includes tenant. 32
For Sellers33
A real estate firm and broker must enter into a written services 34
agreement with a seller to establish an agency relationship. The firm 35
will then appoint one or more brokers to be agents of the seller. The 36
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firm's designated broker and any managing broker responsible for the 1
supervision of those brokers are also agents of the seller.2
For Buyers3
A real estate firm and broker (s) who perform real estate brokerage 4
services for a buyer establish an agency relationship by performing 5
those services. The firm's designated broker and any managing broker 6
responsible for the supervision of that broker are also agents of the 7
buyer. A written services agreement between the buyer and the firm 8
must be entered into before, or as soon as reasonably practical 9
after, a broker begins rendering real estate brokerage services to 10
the buyer. 11
For both Buyer and Seller - as a Limited Dual Agent12
A limited dual agent provides limited representation to both the 13
buyer and the seller in a transaction. Limited dual agency requires 14
the consent of each principal in a written services agreement and may 15
occur in two situations: (1) When the buyer and the seller are 16
represented by the same broker, in which case the broker's designated 17
broker and any managing broker responsible for the supervision of 18
that broker are also limited dual agents; and (2) when the buyer and 19
the seller are represented by different brokers in the same firm, in 20
which case each broker solely represents the principal the broker was 21
appointed to represent, but the broker's designated broker and any 22
managing broker responsible for the supervision of those brokers are 23
limited dual agents. 24
Duration of Agency Relationship25
Once established, an agency relationship continues until the earliest 26
of the following: 27
(1) Completion of performance by the broker; 28
(2) Expiration of the term agreed upon by the parties;29
(3) Termination of the relationship by mutual agreement of the 30
parties; or 31
(4) Termination of the relationship by notice from either party 32
to the other. However, such a termination does not affect the 33
contractual rights of either party. 34
Written Services Agreement35
A written services agreement between the firm and principal must 36
contain the following: 37
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(1) The term (duration) of the agreement; 1
(2) Name of the broker (s) appointed to act as an agent for the 2
principal; 3
(3) Whether the agency relationship is exclusive (which does not 4
allow the principal to enter into an agency relationship with another 5
firm during the term) or nonexclusive (which allows the principal to 6
enter into an agency relationship with multiple firms at the same 7
time); 8
(4) Whether the principal consents to limited dual agency;9
(5) The terms of compensation; 10
(6) In an agreement with a buyer, whether the broker agrees to 11
show a property when there is no agreement or offer by any party or 12
firm to pay compensation to the broker's firm; and13
(7) Any other agreements between the parties. 14
A Broker's Duties to All Parties15
A broker owes the following duties to all parties in a transaction:16
(1) To exercise reasonable skill and care; 17
(2) To deal honestly and in good faith; 18
(3) To timely present all written offers, written notices, and 19
other written communications to and from either party;20
(4) To disclose all existing material facts known by the broker 21
and not apparent or readily ascertainable to a party. A material fact 22
includes information that substantially adversely affects the value 23
of the property or a party's ability to perform its obligations in a 24
transaction, or operates to materially impair or defeat the purpose 25
of the transaction. However, a broker does not have any duty to 26
investigate matters that the broker has not agreed to investigate;27
(5) To account in a timely manner for all money and property 28
received from or on behalf of either party; 29
(6) To provide this pamphlet to all parties to whom the broker 30
renders real estate brokerage services and to any unrepresented 31
party; 32
(7) To disclose in writing who the broker represents; and33
(8) To disclose in writing any terms of compensation offered by a 34
party or a real estate firm to a real estate firm representing 35
another party. 36
Property Must Be Marketed Publicly37
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Brokers who represent a seller must market residential property to 1
all members of the public and all other brokers and may not market 2
the property to an exclusive group of buyers or brokers only, unless 3
the health or safety of the owner or occupant requires.4
A Broker's Duties to the Buyer or Seller5
A broker owes the following duties to their principal (either the 6
buyer or seller): 7
(1) To be loyal to their principal by taking no action that is 8
adverse or detrimental to their principal's interest in a 9
transaction; 10
(2) To timely disclose to their principal any conflicts of 11
interest; 12
(3) To advise their principal to seek expert advice on matters 13
relating to the transaction that are beyond the broker's expertise;14
(4) To not disclose any confidential information from or about 15
their principal; and 16
(5) To make a good faith and continuous effort to find a property 17
for the buyer or to find a buyer for the seller's property, until the 18
principal has entered a contract for the purchase or sale of property 19
or as agreed otherwise in writing. 20
Limited Dual Agent Duties21
A limited dual agent may not advocate terms favorable to one 22
principal to the detriment of the other principal. A broker, acting 23
as a limited dual agent, owes the following duties to both the buyer 24
and seller: 25
(1) To take no action that is adverse or detrimental to either 26
principal's interest in a transaction; 27
(2) To timely disclose to both principals any conflicts of 28
interest; 29
(3) To advise both principals to seek expert advice on matters 30
relating to the transaction that are beyond the limited dual agent's 31
expertise; 32
(4) To not disclose any confidential information from or about 33
either principal; and 34
(5) To make a good faith and continuous effort to find a property 35
for the buyer and to find a buyer for the seller's property, until 36
the principals have entered a contract for the purchase or sale of 37
property or as agreed otherwise in writing. 38
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Compensation1
In any real estate transaction, a firm's compensation may be paid by 2
the seller, the buyer, a third party, or by sharing the compensation 3
between firms. To receive compensation from any party, a firm must 4
have a written services agreement with the party the firm represents 5
(or provide a "Compensation Disclosure" to the buyer in a transaction 6
for commercial real estate). 7
A services agreement must contain the following regarding 8
compensation: 9
(1) The amount the principal agrees to compensate the firm for 10
broker's services as an agent or limited dual agent;11
(2) The principal's consent, if any, and any terms of such 12
consent, to compensation sharing between firms and parties; and13
(3) The principal's consent, if any, and any terms of such 14
consent, to compensation of the firm by more than one party.15
Short Sales16
A "short sale" is a transaction where the seller's proceeds from the 17
sale are insufficient to cover seller's obligations at closing (e.g., 18
the seller's outstanding mortgage is greater than the sale price). If 19
a sale is a short sale, the seller's real estate firm must disclose 20
to the seller that the decision by any beneficiary or mortgagee, to 21
release its interest in the property for less than the amount the 22
seller owes to allow the sale to proceed, does not automatically 23
relieve the seller of the obligation to pay any debt or costs 24
remaining at closing, including real estate firms' compensation.25
Sec. 4. RCW 49.60.222 and 2020 c 52 s 14 are each amended to 26
read as follows: 27
(1) It is an unfair practice for any person, whether acting for 28
himself, herself, or another, because of sex, marital status, sexual 29
orientation, race, creed, color, national origin, citizenship or 30
immigration status, families with children status, honorably 31
discharged veteran or military status, the presence of any sensory, 32
mental, or physical disability, or the use of a trained dog guide or 33
service animal by a person with a disability: 34
(a) To refuse to engage in a real estate transaction with a 35
person; 36
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(b) To discriminate against a person in the terms, conditions, or 1
privileges of a real estate transaction or in the furnishing of 2
facilities or services in connection therewith; 3
(c) To refuse to receive or to fail to transmit a bona fide offer 4
to engage in a real estate transaction from a person;5
(d) To refuse to negotiate for a real estate transaction with a 6
person; 7
(e) To represent to a person that real property is not available 8
for inspection, sale, rental, or lease when in fact it is so 9
available, or to fail to bring a property listing to his or her 10
attention, or to refuse to permit the person to inspect real 11
property; 12
(f) To discriminate in the sale or rental, or to otherwise make 13
unavailable or deny a dwelling, to any person; or to a person 14
residing in or intending to reside in that dwelling after it is sold, 15
rented, or made available; or to any person associated with the 16
person buying or renting; 17
(g) To make, print, circulate, post, or mail, or cause to be so 18
made or published a statement, advertisement, or sign, or to use a 19
form of application for a real estate transaction, or to make a 20
record or inquiry in connection with a prospective real estate 21
transaction, which indicates, directly or indirectly, an intent to 22
make a limitation, specification, or discrimination with respect 23
thereto; 24
(h) To offer, solicit, accept, use, or retain a listing of real 25
property with the understanding that a person may be discriminated 26
against in a real estate transaction or in the furnishing of 27
facilities or services in connection therewith; 28
(i) To expel a person from occupancy of real property;29
(j) To discriminate in the course of negotiating, executing, or 30
financing a real estate transaction whether by mortgage, deed of 31
trust, contract, or other instrument imposing a lien or other 32
security in real property, or in negotiating or executing any item or 33
service related thereto including issuance of title insurance, 34
mortgage insurance, loan guarantee, or other aspect of the 35
transaction. Nothing in this section shall limit the effect of RCW 36
49.60.176 relating to unfair practices in credit transactions; or37
(k) To attempt to do any of the unfair practices defined in this 38
section. 39
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(2) For the purposes of this chapter discrimination based on the 1
presence of any sensory, mental, or physical disability or the use of 2
a trained dog guide or service animal by a person who is blind, deaf, 3
or physically disabled includes: 4
(a) A refusal to permit, at the expense of the person with a 5
disability, reasonable modifications of existing premises occupied or 6
to be occupied by such person if such modifications may be necessary 7
to afford such person full enjoyment of the dwelling, except that, in 8
the case of a rental, the landlord may, where it is reasonable to do 9
so, condition permission for a modification on the renter agreeing to 10
restore the interior of the dwelling to the condition that existed 11
before the modification, reasonable wear and tear excepted;12
(b) To refuse to make reasonable accommodation in rules, 13
policies, practices, or services when such accommodations may be 14
necessary to afford a person with the presence of any sensory, 15
mental, or physical disability and/or the use of a trained dog guide 16
or service animal by a person who is blind, deaf, or physically 17
disabled equal opportunity to use and enjoy a dwelling; or18
(c) To fail to design and construct covered multifamily dwellings 19
and premises in conformance with the federal fair housing amendments 20
act of 1988 (42 U.S.C. Sec. 3601 et seq.) and all other applicable 21
laws or regulations pertaining to access by persons with any sensory, 22
mental, or physical disability or use of a trained dog guide or 23
service animal. Whenever the requirements of applicable laws or 24
regulations differ, the requirements which require greater 25
accessibility for persons with any sensory, mental, or physical 26
disability shall govern. 27
Nothing in (a) or (b) of this subsection shall apply to: (i) A 28
single-family house rented or leased by the owner if the owner does 29
not own or have an interest in the proceeds of the rental or lease of 30
more than three such single-family houses at one time, the rental or 31
lease occurred without the use of a salesperson, or a broker as 32
defined in RCW 18.85.011, and the rental or lease occurred without 33
the publication, posting, or mailing of any advertisement, sign, or 34
statement in violation of subsection (1)(g) of this section; or (ii) 35
rooms or units in dwellings containing living quarters occupied or 36
intended to be occupied by no more than four families living 37
independently of each other if the owner maintains and occupies one 38
of the rooms or units as his or her residence. 39
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(3) It is an unfair practice for a real estate licensee to market 1
the sale or lease of residential real estate to a limited or 2
exclusive group of prospective buyers, prospective tenants, or real 3
estate licensees, or any combination thereof, unless the real estate 4
is concurrently marketed to the general public and all other real 5
estate licensees, except as reasonably necessary to protect the 6
health or safety of the owner or occupant.7
(4) Notwithstanding any other provision of this chapter, it shall 8
not be an unfair practice or a denial of civil rights for any public 9
or private educational institution to separate the sexes or give 10
preference to or limit use of dormitories, residence halls, or other 11
student housing to persons of one sex or to make distinctions on the 12
basis of marital or families with children status.13
(((4))) (5) Except pursuant to subsection (2)(a) of this section, 14
this section shall not be construed to require structural changes, 15
modifications, or additions to make facilities accessible to a person 16
with a disability except as otherwise required by law. Nothing in 17
this section affects the rights, responsibilities, and remedies of 18
landlords and tenants pursuant to chapter 59.18 or 59.20 RCW, 19
including the right to post and enforce reasonable rules of conduct 20
and safety for all tenants and their guests, provided that chapters 21
59.18 and 59.20 RCW are only affected to the extent they are 22
inconsistent with the nondiscrimination requirements of this chapter. 23
Nothing in this section limits the applicability of any reasonable 24
federal, state, or local restrictions regarding the maximum number of 25
occupants permitted to occupy a dwelling. 26
(((5))) (6) Notwithstanding any other provision of this chapter, 27
it shall not be an unfair practice for any public establishment 28
providing for accommodations offered for the full enjoyment of 29
transient guests as defined by RCW 9.91.010(1)(c) to make 30
distinctions on the basis of families with children status. Nothing 31
in this section shall limit the effect of RCW 49.60.215 relating to 32
unfair practices in places of public accommodation.33
(((6))) (7) Nothing in this chapter prohibiting discrimination 34
based on families with children status applies to housing for older 35
persons as defined by the federal fair housing amendments act of 36
1988, 42 U.S.C. Sec. 3607 (b)(1) through (3), as amended by the 37
housing for older persons act of 1995, P.L. 104-76, as enacted on 38
December 28, 1995. Nothing in this chapter authorizes requirements 39
for housing for older persons different than the requirements in the 40
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federal fair housing amendments act of 1988, 42 U.S.C. Sec. 1
3607(b)(1) through (3), as amended by the housing for older persons 2
act of 1995, P.L. 104-76, as enacted on December 28, 1995.3
(((7))) (8) Nothing in this chapter shall apply to real estate 4
transactions involving the sharing of a dwelling unit, or rental or 5
sublease of a portion of a dwelling unit, when the dwelling unit is 6
to be occupied by the owner or subleasor. For purposes of this 7
section, "dwelling unit" has the same meaning as in RCW 59.18.030.8
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