BUYER’S GUIDE Keith Cook Managing Broker (360) 739-5600 RE/MAX Whatcom County, Inc.
913 Lakeway Drive Bellingham WA 98229
HOME BUYING PROCESS
FINANCING A buyer who has made application with a lender and whose income and credit report have been verified can become a preapproved buyer. A pre-qualified buyer has given verbal, undocumented information to a lender. A pre-approved buyer has a distinct advantage over a pre-qualified buyer. Sellers will negotiate with and compromise more for a pre-approved buyer. Because you are preapproved, you become a “cash� buyer in the eyes of the seller.
UP-FRONT COSTS Lender: Appraisal, Title & Credit Report
$500-$600
Earnest Money
$500-$10,000
Home Inspector
$350-$500
Recommended Loan Officers
Christy Sorenson Real Estate Loan Officer 360-756-2772 Bank of the Pacific Bellingham, WA
Reah Dewell Real Estate Loan Officer 360-384-4975 Wells Fargo Ferndale, WA
Heidi Kenerson Real Estate Loan Officer 360-354-7285 Peoples Bank Bellingham, WA
FINANCING Items Needed For Loan Application Employment •
Address for two full years
•
Gross monthly income
•
W-2’S from the last 2 years for all borrowers (including any business returns and K-1’s if applica-
ble) •
Proof of pensions, retirement, disability or social security
•
Proof of income from rentals, investments, etc.
•
Proof of child support or alimony paid/received
•
Year to date pay stub
•
If self-employed:
Creditors
Two years 1040 tax returns
•
Each creditor’s name, address & type of account
•
Account numbers
•
Monthly payments & approximate balance
•
Amount of child care expenses
Current year profit & loss statement
Banking •
Names and addresses of saving institutions
•
Account numbers for all accounts
•
Type of accounts and present balances
•
Copy of current mortgage statements for any properties currently owned
Miscellaneous •
List of assets in stocks, bonds & land
•
Life insurance cash value (documented if used as cash down payment)
•
If applicant is selling a home, a copy of sales contract(s)
•
Home owners insurance agent contact info
•
Social security numbers for all parties
•
Veterans-Certified of eligibility & DD-214
•
Cash or check to pay for application fee
DISCLOSURES & NEGOTIATIONS Home Inspection We cannot stress enough the importance of having an inspection‌ Even on a brand new home. While there may not appear to be any major problems with the home, having an inspection will give you the assurance that the house is sound and will save you from costly surprises in the future. Plan to attend the inspection to ask questions and to learn as much as you can about your new home.
We recommend the following building inspectors. They are all members of the American Society of Home Inspectors and will issue a written report to you upon finalized inspection (including pest inspection). Their inspections range between $350 and $500.
Recommended Home Inspectors
Pescado Enterprises, Inc.
Brian Fish (360) 320-8133
Inside N Out Inspection Services
Dennis Flaherty (360) 393-0274
All Islands Home Inspections
Tim Hance (360) 298-1163
HOME BUYING STRATGEY
BROKER
CLIENT
Preliminary Market Report
Drive Neighborhoods
MLS Daily Search
Attend Open Houses
Fax/Email Matches
Review Info—Drive by ASAP
Agent Network
Network with your friends
Give you hours/day to reach
Give me your hours/days to reach
Arrange Showings
Have checkbook with you
Check on FSBO’s you ask about
Suggest FSBO’s
Review agent flyers
Review Newspaper/Internet
Research “Solds”
Consider the Facts
Research Tax Records
Review Research
Draft & Negotiate P&SA
Have Authority to Sign
Review Inspection Report
Attend Inspection
Negotiate Work Orders
Review Bids & Promptly Respond
P&SA to Lender
Promptly Sign Lender’s Documents
Appraiser Access
Promptly Provide Info Requested
Manage Work Order Completion
Inspect Work Orders
Review Closing Documents
Accessible to Sign
CLIENT AUTHORIZATION I earn my living selling real estate. I receive no wage or salary. I am paid a commission by the seller at the time your home closes. All expenses are paid solely by me in advance. The commission reimburses me for my time and expenses, My business philosophy is:
To provide my clients, with friendly, knowledgeable, comfortable service. While you are looking for a home, my time is yours. I strive to provide a level of service that will make you proud to say “Keith is my Broker.” In return, I ask you to agree to the following: •
To work with me as your Broker
•
To contact me about information on any property that you see or that is brought to your attention, including “for sale by owners” and “builder direct” properties
•
If you visit open houses, tell the host you are working with me
•
If any agent offers information on homes that may be of interest to you, please ask them to pass the information on to me
•
Do not negotiate without my presence
•
Speak with me the moment a concern arises. Let me answer your questions.
•
The highest compliment you can give me is to recommend my services to your family, friends and associates
THANK YOU AHEAD OF TIME FOR ALLOWING ME TO HELP YOU WITH THE PURCHASE OF YOUR NEW HOME
Initials:
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Date:
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KEITH COOK BROKER (360) 739-5600
KEITH COOK In my 25 years of being a real estate broker, I’ve been involved in hundreds of transactions; but quantity isn’t the most-important thing to judge a broker on. The experience I’ve gained from working with a unique property, buyer, and seller each transaction is invaluable—and much more qualifying than a simple number of transactions. When you have as much experience working in real estate as I do, you get to see some challenging situations—and even better, you get to solve those problems for your client. After 25 years in this profession, I have the necessary skills to solve most problems and provide you with the best service possible. Everything I’ve done in my career has been in the best interest of my clients. That is why I’m always honest with my clients and why I am not afraid to have candid discussions with them in order to get them an outcome they’re pleased with. I’ve been around real estate my entire life so it was only natural for me to find a career as a broker. My father was a commercial broker in Seattle for 45 years and gave me a strong appreciation for working in real estate. Before finding my way into real estate, however, I had a few different jobs and lived in a few different places. After receiving an Honorable Discharge from the Army at the ripe old age of 20, I began working on a fishing boat in Alaska before returning to the Seattle. I then worked as a cook and in construction for a time before getting my broker’s license. After a few years in Seattle, I moved back to my hometown of Bellingham and I’ve been here ever since. While not at work, I enjoy spending time with my teenage son, whom I co-parent with my ex-wife. I also spend my time travelling, camping, quading, skiing, golfing, and hiking. I consider myself somewhat of an expert on Bellingham and Whatcom County. I love to explore my area—I’ve been on every street in Bellingham and nearly all the roads in Whatcom County. If you have any questions about relocating to Whatcom County, the real estate market, or Bellingham in general, I’d be happy to answer those for you. Between Sally Webb (my partner of 10 years) and I, we know just about everything there is to know about the real estate market in this area; and we’d love to give you a tour.
Contact Keith Managing Broker 360-739-5600 Keith@BuyerMax.com
KEITH’S RESUME Real Estate Experience Managing Broker ABR
Accredited Buyer Representative
CDPE
Certified Distressed Property Expert
CRS
Certified Residential Specialist
FSP
Five Star Professional
SRES
Senior Real Estate Specialist
25+ years of full time real estate experience in the greater Puget Sound area. Expertise includes: single family, multi-family, condominiums, commercial, lots, acreage, seller, lender and creative financing, real estate options, deeds of trust, title insurance, escrow and property management. RE/MAX International Lifetime Achievement RE/MAX International Hall of Fame RE/MAX Whatcom County Most Valuable Team Player of the Year RE/MAX International Platinum RE/MAX International 100% RE/MAX International Executive 1031 Advanced (OREXCO) 1031 Exchanging (OREXCO) A Stake in the Ground (Chicago Title School of Real Estate) Advanced Exchange Strategies (WAR) Advertising Photography for Real Estate (Huckaby, BTC) And the Survey Says! (Chicago Title School of Real Estate) Best of the Legal Hotline (WAR) Broker Relationships Rights & Responsibilities (WAR) Business Development (Council of Residential Specialists) Buyer & Seller Agency (WCAR) Code of Ethics (WAR) Commercial Real Estate (CCIM) Common Misconceptions in Title Insurance (Chicago Title School of Real Estate) Comparative Market Analysis (NWMLS) Cooperation & Compensation Agency Law (NWMLS) CORE Curriculum, Current Issues in Washington Residential Real Current Issues in Commercial Real Estate (CBA) Current Issues in Washington Commercial Real Estate (CBA) Current Issues in Washington Residential Real Estate (Mykut Real Estate School) Current Trends in Washington Residential Real Estate (Washington Realtors)
Real Estate Education Death, Divorce, and Taxes (Chicago Title School of Real Estate) Drinking Water, Sewage and Development (WSU) Escrow Essentials (CTIC) Estate (Mykut Real Estate School) Exchange Agent (Starker Services Real Estate Education) Fair Housing Update (Century 21 Real Estate Center) Federal & State Taxation (WAR) Federal Lead Base Paint (WCAR) FHA Essentials (WA Association of Realtors) FHA Essentials (Wells Fargo) Financing, Country Wide Home Loans (Premier RE School) Fundamentals of Real Estate Finance (Continental Mortgage) High Tech Tools (WAR) Home Inspection, First Choice (Premier Real Estate School) Home Inspections (Premier Real Estate School) IRC 1031 Exchanging (OREXCO) Legal Issues Update (WAR) License Law (Century 21 Real Estate Center) Mortgage Underwriting (RE Resource Group) NAR Code of Ethics – 3 (Washington Realtors) NAR Code of Ethics – 4 (Washington Realtors) Navigating Waterfront Title (Chicago Title School of Real Estate) New Home Sales (Council of Residential Specialists)
NWMLS Forms Basics (WAR) Problems with Older and Newer Homes (Pillar to Post) Property Management (WAR) Real Estate Broker Management (WAR) Real Estate Essentials (Shoreline Community College) Real Estate Law (WAR) Realist Tax Data (NWMLS) REO A-Z (Five Star Institute) Residential Quickstart (WCAR) Revisions to Forms (WAR) Short Sale Mastery & Production (WAR) Short Sale Transaction (First American Title) Short Sales A-Z (Five Star Institute) Short Sales Mastery (Funders Choice) Statewide Forms Update (WAR) Statewide Listing Agreement (NWMLS) The Agency Reform Act of 1996 (WAR) The Life of an Escrow (Chicago Title School of Real Estate) There’s More Than One Way to Transfer Title (Chicago Title School of Real Estate) Title Insurance (CTIC) Title Insurance (David Hutton Real Estate School) Today’s Tax Laws (WAR) Trends in Real Estate Agency (WAR) Water Rights (Island Title Company) Your House is on My Lot (Chicago Title School of Real Estate)
KEITH’S REFERENCES References David Bernstein 4973 Cottonwood Ct. #3 Blaine, WA 98230 (360) 739-4748
Lynn & Mike Giulani 7142 Bartlett Ln. Lynden, WA 98264 (360) 733-6557
Lana Larson & Steen Willard 2440 S. Bakerview Park Dr. Ferndale, WA 98248 (360) 201-9453
Kelly Mielke 1212 E Victor St. Bellingham, WA 98225 (360) 671-4437
Bob Rude 2377 Coyote Creek Dr. Bellingham, WA 98226 (360) 319-5573
Rich Davis & Kathy Kraynak 414 Fieldston Rd. Bellingham, WA 98229 (360) 676-8321
Earl Johnson 10702 Thompson Creek Rd. Bellingham, WA 98224 (360) 223-3275
Client’s Feedback
“I highly recommend Keith to anyone. He worked extremely hard and was incredibly lexible in getting my rental home sold. Great job Keith!” - D. Wilson “We wanted to write and thank you for all your hard work and dedication in helping us buy our irst home. You alone helped make this a wonderful experience for us, and we recommend you to everyone we talk to. We really appreciate the complete interest and involvement you have shown us from the irst day we started and even now. It has always felt that we were your only clients even though you have many. Thanks for helping make our dream become a reality. We love our new home!!” - Kellie “We feel fortunate to have found Keith. We not only intend to list him as our representative in any future dealings of our own, without the least hesitation we would recommend him to anyone where real estate is concerned. Thank you!” - Tom & Lisa “I would, without reservation, recommend Keith to anyone with any type of real estate need. He’s the greatest. Thanks Keith!” - Jane “I just wanted to thank you for your hard work and dedication in selling my house. Even though there were multiple problems with the sale and inancing, you never gave up. The house was listed with another agency for 6 months and was only shown 4 times. Once your company took over as our realtor, things started moving. Within three months the house was sold and the deal closed.” - Jeannie “Keith immediately impressed me. Keith has always gone out of his way to complete my transactions, and I highly recommend him for anyone’s real estate needs.” - Damon “Wow, I wish more realtors understood the appraisal process like you do.” - Sandra “We would recommend Keith to anyone buying a new or used home, we know they won’t be sorry.” - Ben & Blair
SALLY WEBB I was born in Felixstowe, Suffolk, England, a coastal town in East Anglia. I went to school there and graduated from Brentwood College of Education with a teacher's degree in 1977. After spending a year in Montreal, Canada, my dream was to emigrate to North America permanently. I moved to Vancouver, B.C. in 1981 where I worked as a nanny until I gained my Canadian citizenship. I married and had four kids and we were able to move to Bellingham in 1991. I love this area and am fortunate to live by Lake Whatcom, close to the Skagit County border. Since then my life has changed in many ways! I discovered a love of real estate, which I have pursued as a career with RE/MAX since 2000. I remarried in 2002 and have recently become a U.S. citizen. I am looking forward to making new connections while maintaining a relationship with past clients and friends. My goal as a real estate broker is to go above and beyond what my clients expect. I know that buying or selling a home is a major life event and can be overwhelming so I try my best to make it an enjoyable, straight-forward process. I am a great listener and will help my clients every step of the way. I have learned during my many years in real estate, that a no pressure approach keeps everyone relaxed. I am always completely honest and committed to each client no matter how large or small the property. When I am not working, I enjoy boating in the San Juan and Gulf Islands with my husband and our rescue dogs, Jack and Lucy, who also likes to kayak with me on the lake! We like to play golf and if I could do it more often, I might get better at the game. I feel so fortunate to have a healthy, happy life and to live in one of the most beautiful places in the world. I love to show off our area so let me know if you would like a tour!
Contact Sally Broker 360-224-1270 Sally@BuyerMax.com
TRUSTED PROFESSIONALS Home Maintenance Derek Martin - Great Floors Specialty Floor Covering Bellingham Showroom d.martin@greatfloors.com (360) 738-3599 Garett Wise - General Contractor All County Home Repair Office: (360) 318-9473 Cell: (360) 220-1338 Eric Benson - Electrician Benson Service Electric, Inc. Cell: (360) 220-2630 Ph/Fax: (360) 392-8152 Lenny Warren - A1 Reglazing Reglazing Services, Tub, Tile, Etc. A-1reglazingnw.com a1reglazing@aol.com (360) 920-7971 Brent Moa Premium Septic Service info@premiumseptic.com (360) 410-1764 Justin Odens - Jo, Inc. Lawn Mowing/Landscape odensj@yahoo.com (360) 961-1056 Key West Ins. Locksmith (360) 733-8496
Insurance B.J. Mattainti - Mattainti Insurance Home, Auto, Life, Health, Business, Bonding BJ@soleyoninsurance.com (360) 319-2948
Tim Dickerson - Rice Insurance riceinsurance.com Phone: (360) 734-1161 Cell: (360) 961-9763 Fax: (360) 734-1173
Kathy Herndon - CPA Varner Sytsma Herndon herndon@vshcpa.com vshcpa..com (360) 734-8715
Land Development
Bethany Lamb - ACP Property Management Office: (360) 393-3494 Cell: (360) 969-0953
J.P. Slagel, P.E. Freeland & Associates, Inc. jpslagle@freelandengineering.com Office: (360) 650-1408 Jason Stoner - Larry D. Stoner Land Development Consultants larrystoner.net Jason@larrystoner.net (360) 201-3131 Douglas Campbell, P.E. - Associated Project Consultants, Inc. P.S. doug@apcengineers.com www.apcengineers.com (360) 671-1146 Fax: (360) 671-1169
Real Estate Services Harold Wilson - MC Construction Mcsmithconstruction.com Harold@mcsmithconstruction.com (360) 671-1178 William Townsend Starker Services National 1031 Exchange Intermediary Starker.com starkerexhanges@msn.com (425) 646-7299 Automatic Funds Transfer Services www.afts.com Phone: (206) 254-0975 Fax: (206) 254-0968
Steve Erickson - K&E Moving & Storage Cell: (360) 733-7800 Home: (360) 734-9197 Tom Jerich - T&J Masonry tjmasonrycompany.com (360) 595-1026 Katrina Jackson Northwest Wetlands Consulting nwckatrina@comcast.net (360) 510-1605
Attorneys Katie A. Lawson - Attorney at Law Phone: (919) 885-4019 Fax: (919) 237-9192 info@klawsonlaw.com Rich Davis Chmelik Sitkin & Davis P.S. rdavis@chmelik.com Phone: (360) 671-1736 x 202 Fax: (360) 671-3781 Brad Swanson, P.E. Attorney at Law Belcher Swanson Law Firm, PLLC Phone: (360) 734-6390 Fax: (360) 671-0753
USEFUL PHONE NUMBERS & INFORMATION RE/MAX Whatcom County Information
Local Border Crossing
913 Lakeway Drive Bellingham, WA 98229 Front Desk Front Desk (Toll Free) Fax
Blaine I-5 Blaine Pacific Highway Lynden Sumas
360-674-1313 360-723-1313 360-671-8022
Miscellaneous Information
Emergency Information Police & Fire Emergencies 911 Poison Center 800-222-1222 Whatcom County Sheriff's Office Administration 360-676-6650 Jail 360-676-6848 Records/IDS 360-676-6652
Government DSHS Unemployment Security Social Security
360-332-8511 360-332-7237 360-354-2183 360-988-2971
360-714-4000 800-318-6022 800-772-1213
School Information Whatcom Community College 360-676-2170 Western Washington University 360-650-3000 Bellingham Tech 360-752-7000 Bellingham School District 360-676-6400 Blaine School District 360-332-5881 Ferndale School District 248-506-8651 Lynden School District 360-354-4443
Bus Information Amtrak Bellingham Airport Voter Registration Bellingham Herald Animal Control Auto Plates & Tabs Bellingham Library Wal-Mart Costco Bellis Fair Mall
360-676-RIDE 800-USA-RAIL 360-971-5674 360-676-6742 360-676-2600 360-733-2080 360-676-6740 360-778-7323 360-647-1400 360-685-0420 360-671-5654
UTILITIES TO CONTACT Your Escrow agent will prorate any utility bulls on you new property. However, it is always wise to contact these utilities to make sure they have your name on file for may future billings after you move in. Sellers do not take kindly to receiving bills after they have moved! You do not want to have service inexplicable cut off when you least expect it. Here are the utility companies to contact when you move to Whatcom County.
High Speed Internet Comcast Qwest AT&T
800-266-2278 800-996-2516 800-967-5363
Telephone Service Qwest Residential Comcast Residential Verizon Residential
1-800-244-1111 1-888-266-2278 1-800-483-4100
Cable Television Comcast Direct TV Dish Network
1-888-266-2278 1-800-347-3288 1-800-722-9957
Electric Service Puget Sound Energy 1-888-225-5773 City of Blaine 360-332-8820 If you need to locate underground lines before you dig, call 1-800-424-5555
Natural Gas Service Cascade Natural Gas 360-733-5980 If you need to locate underground lines before you dig, call 1-800-553-4344
UTILITIES TO CONTACT Propane Gas Service VanderYacht Propane Northwest Propane Propane Gas Inc. American Propane Cenex Propane
360-399-1234 360-354-4471 360-384-4922 360-384-1841 360-354-4595
Water & Sewer Service City of Bellingham City of Blaine City of Everson City of Ferndale City pf Lynden City of Nooksack City of Sumas Birch Bay W&S Water District #2 Water District #7 Water District #10 Water District #12
360-676-6900 360-332-8311 360-966-3411 360-384-4302 360-354-2829 360-966-2531 360-988-5711 360-371-7100 360-733-5700 360-752-9208 360-734-9224 360-734-5664
Garbage Service Sanitary Service Co. (Bellingham) Nooksack Value Disposal Bay Refuse (Blaine) Recycling & Disposal Services (Ferndale)
360-734-3490 360-754-3400 360-332-5443 360-384-8011
Recycling Service Waste Reduction RDS, Inc.
360-676-5723 360-384-8011
If you are purchasing a condo, it is possible that you Homeowner Dues will cover some or all of these services. If you are purchasing a lot of acreage on which there is not yet a home, other services may need to be contacted, such as a septic installer and/or well driller. Please ask for this information ad I’ll be happy to supply the contact names/numbers you need.
THE LAW OF REAL ESTATE AGENCY This pamphlet describes your legal rights in dealing with a real estate broker or salesperson. Please read it carefully before signing any documents. The following is only a brief summary of the attached law: Sec. 1. Definitions. Defines the specific terms used in the law. Sec. 2. Relationships between Brokers and the Public. Prescribes that a broker who works with a buyer or tenant represents that buyer or tenant— unless the broker is the listing agent, a seller's subagent, a dual agent, the seller personally or the parties agree otherwise. Also prescribes that in a transaction involving two different brokers licensed to the same real estate firm, the firm's designated broker and any managing broker responsible for the supervision of both brokers, are dual agents and each broker solely represents his or her client— unless the parties agree in writing that both brokers are dual agents. Sec. 3. Duties of a Broker Generally. Prescribes the duties that are owed by all brokers, regardless of who the broker represents. Requires disclosure of the broker's agency relationship in a specific transaction.
Provides that the duties of accounting and confidentiality continue after the termination of an agency relationship. Sec. 8. Compensation. Allows real estate firms to share compensation with cooperating real estate firms. States that payment of compensation does not necessarily establish an agency relationship. Allows brokers to receive compensation from more than one party in a transaction with the parties' consent. Sec. 9. Vicarious Liability. Eliminates the liability of a party for the conduct of the party's agent or subagent, unless the principal participated in or benefited from the conduct or the agent or subagent is insolvent. Also limits the liability of a broker for the conduct of a subagent. Sec. 10. Imputed Knowledge and Notice. Eliminates the common law rule that notice to or knowledge of an agent constitutes notice to or knowledge of the principal. Sec. 11. Interpretation. This law establishes statutory duties which replace common law fiduciary duties owed by an agent to a principal.
Sec. 4. Duties of a Seller's Agent. Prescribes the additional duties of a broker representing the seller Sec. 12. Short Sale. Prescribes an additional duty of or landlord only. a firm representing the seller of owner-occupied Sec. 5. Duties of a Buyer's Agent. Prescribes the real property in a short sale. additional duties of a broker representing the buyer or tenant only. Sec. 6. Duties of a Dual Agent. Prescribes the additional duties of a broker representing both parties in the same transaction, and requires the written consent of both parties to the broker acting as a dual agent. Sec. 7. Duration of Agency Relationship. Describes when an agency relationship begins and ends.
THE LAW OF REAL ESTATE AGENCY SECTION 1 Definitions Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Agency relationship" means the agency relationship created under this chapter or by written agreement between a real estate firm and a buyer and/or seller relating to the performance of real estate brokerage services. (2) "Agent" means a broker who has entered into an agency relationship with a buyer or seller. (3) "Broker" means broker, managing broker, and designated broker, collectively, as defined in chapter 18.85 RCW, unless the context requires the terms to be considered separately. (4) "Business opportunity" means and includes a business, business opportunity, and goodwill of an existing business, or any one or combination thereof when the transaction or business includes an interest in real property. (5) "Buyer" means an actual or prospective purchaser in a real estate transaction, or an actual or prospective tenant in a real estate rental or lease transaction, as applicable. (6) "Buyer's agent" means a broker who has entered into an agency relationship with only the buyer in a real estate transaction, and includes subagents engaged by a buyer's agent. (7) "Confidential information" means information from or concerning a principal of a broker that: (a) Was acquired by the broker during the course of an agency relationship with the principal; (b) The principal reasonably expects to be kept confidential; (c) The principal has not disclosed or authorized to be disclosed to third parties;
(d) Would, if disclosed, operate to the detriment of the principal; and (e) The principal personally would not be obligated to disclose to the other party. (8) "Dual agent" means a broker who has entered into an agency relationship with both the buyer and seller in the same transaction. (9) "Material fact" means information that substantially adversely affects the value of the property or a party's ability to perform its obligations in a real estate transaction, or operates to materially impair or defeat the purpose of the transaction. The fact or suspicion that the property, or any neighboring property, is or was the site of a murder, suicide or other death, rape or other sex crime, assault or other violent crime, robbery or burglary, illegal drug activity, gang-related activity, political or religious activity, or other act, occurrence, or use not adversely affecting the physical condition of or title to the property is not a material fact. (10) "Principal" means a buyer or a seller who has entered into an agency relationship with a broker. (11) "Real estate brokerage services" means the rendering of services for which a real estate license is required under chapter 18.85 RCW. (12) "Real estate firm" or "firm" have the same meaning as defined in chapter 18.85 RCW. (13) "Real estate transaction" or "transaction" means an actual or prospective transaction involving a purchase, sale, option, or exchange of any interest in real property or a business opportunity, or a lease or rental of real property. For purposes of this chapter, a prospective transaction does not exist until a written offer has been signed by at least one of the parties. (14) "Seller" means an actual or prospective seller in a real estate transaction, or an actual or
THE LAW OF REAL ESTATE AGENCY prospective landlord in a real estate rental or lease transaction, as applicable. (15) "Seller's agent" means a broker who has entered into an agency relationship with only the seller in a real estate transaction, and includes subagents engaged by a seller's agent. (16) "Subagent" means a broker who is engaged to act on behalf of a principal by the principal's agent where the principal has authorized the broker in writing to appoint subagents.
SECTION 2 Agency relationship. (1) A broker who performs real estate brokerage services for a buyer is a buyer's agent unless the: (a) Broker's firm has appointed the broker to represent the seller pursuant to a written agency agreement between the firm and the seller, in which case the broker is a seller's agent; (b) Broker has entered into a subagency agreement with the seller's agent's firm, in which case the broker is a seller's agent; (c) Broker's firm has appointed the broker to represent the seller pursuant to a written agency agreement between the firm and the seller, and the broker's firm has appointed the broker to represent the buyer pursuant to a written agency agreement between the firm and the buyer, in which case the broker is a dual agent; (d) Broker is the seller or one of the sellers; or (e) Parties agree otherwise in writing after the broker has complied with RCW 18.86.030(1)(f). (2) In a transaction in which different brokers affiliated with the same firm represent different parties, the firm's designated broker and any managing broker responsible for the supervision of both brokers, is a dual agent, and must obtain the
written consent of both parties as required under RCW 18.86.060. In such case, each of the brokers shall solely represent the party with whom the broker has an agency relationship, unless all parties agree in writing that the broker is a dual agent. (3) A broker may work with a party in separate transactions pursuant to different relationships, including, but not limited to, representing a party in one transaction and at the same time not representing that party in a different transaction involving that party, if the broker complies with this chapter in establishing the relationships for each transaction.
SECTION 3 Duties of Broker (1) Regardless of whether a broker is an agent, the broker owes to all parties to whom the broker renders real estate brokerage services the following duties, which may not be waived: (a) To exercise reasonable skill and care; (b) To deal honestly and in good faith; (c) To present all written offers, written notices and other written communications to and from either party in a timely manner, regardless of whether the property is subject to an existing contract for sale or the buyer is already a party to an existing contract to purchase; (d) To disclose all existing material facts known by the broker and not apparent or readily ascertainable to a party; provided that this subsection shall not be construed to imply any duty to investigate matters that the broker has not agreed to investigate; (e) To account in a timely manner for all money and property received from or on behalf of either party; (f) To provide a pamphlet on the law of real
THE LAW OF REAL ESTATE AGENCY estate agency in the form prescribed in RCW 18.86.120 to all parties to whom the broker renders real estate brokerage services, before the party signs an agency agreement with the broker, signs an offer in a real estate transaction handled by the broker, consents to dual agency, or waives any rights, under RCW 18.86.020(1)(e),18.86.040 (1)(e), 18.86.050(1)(e), or 18.86.060(2) (e) or (f), whichever occurs earliest; and (g) To disclose in writing to all parties to whom the broker renders real estate brokerage services, before the party signs an offer in a real estate transaction handled by the broker, whether the broker represents the buyer, the seller, both parties, or neither party. The disclosure shall be set forth in a separate paragraph entitled "Agency Disclosure" in the agreement between the buyer and seller or in a separate writing entitled "Agency Disclosure." (2) Unless otherwise agreed, a broker owes no duty to conduct an independent inspection of the property or to conduct an independent investigation of either party's financial condition, and owes no duty to independently verify the accuracy or completeness of any statement made by either party or by any source reasonably believed by the broker to be reliable.
SECTION 4 Seller's agent—Duties. (1) Unless additional duties are agreed to in writing signed by a seller's agent, the duties of a seller's agent are limited to those set forth in RCW 18.86.030 and the following, which may not be waived except as expressly set forth in (e) of this subsection: (a) To be loyal to the seller by taking no action that is adverse or detrimental to the seller's interest in a transaction;
(b) To timely disclose to the seller any conflicts of interest; (c) To advise the seller to seek expert advice on matters relating to the transaction that are beyond the agent's expertise; (d) Not to disclose any confidential information from or about the seller, except under subpoena or court order, even after termination of the agency relationship; and (e) Unless otherwise agreed to in writing after the seller's agent has complied with RCW 18.86.030(1)(f), to make a good faith and continuous effort to find a buyer for the property; except that a seller's agent is not obligated to seek additional offers to purchase the property while the property is subject to an existing contract for sale. (2)(a) The showing of properties not owned by the seller to prospective buyers or the listing of competing properties for sale by a seller's agent does not in and of itself breach the duty of loyalty to the seller or create a conflict of interest. (b) The representation of more than one seller by different brokers affiliated with the same firm in competing transactions involving the same buyer does not in and of itself breach the duty of loyalty to the sellers or create a conflict of interest.
SECTION 5 Buyer's agent—Duties. (1) Unless additional duties are agreed to in writing signed by a buyer's agent, the duties of a buyer's agent are limited to those set forth in RCW 18.86.030 and the following, which may not be waived except as expressly set forth in (e) of this subsection: (a) To be loyal to the buyer by taking no action that is adverse or detrimental to the buyer's interest in a transaction;
THE LAW OF REAL ESTATE AGENCY (b) To timely disclose to the buyer any conflicts of interest; (c) To advise the buyer to seek expert advice on matters relating to the transaction that are beyond the agent's expertise; (d) Not to disclose any confidential information from or about the buyer, except under subpoena or court order, even after termination of the agency relationship; and (e) Unless otherwise agreed to in writing after the buyer's agent has complied with RCW 18.86.030(1)(f), to make a good faith and continuous effort to find a property for the buyer; except that a buyer's agent is not obligated to: (i) Seek additional properties to purchase while the buyer is a party to an existing contract to purchase; or (ii) show properties as to which there is no written agreement to pay compensation to the buyer's agent. (2)(a) The showing of property in which a buyer is interested to other prospective buyers by a buyer's agent does not in and of itself breach the duty of loyalty to the buyer or create a conflict of interest. (b) The representation of more than one buyer by different brokers affiliated with the same firm in competing transactions involving the same property does not in and of itself breach the duty of loyalty to the buyer or create a conflict of interest.
SECTION 6 Dual agent—Duties. (1) Notwithstanding any other provision of this chapter, a broker may act as a dual agent only with the written consent of both parties to the transaction after the dual agent has complied with RCW 18.86.030(1)(f), which consent must include a statement of the terms of compensation.
(2) Unless additional duties are agreed to in writing signed by a dual agent, the duties of a dual agent are limited to those set forth in RCW 18.86.030 and the following, which may not be waived except as expressly set forth in (e) and (f) of this subsection: (a) To take no action that is adverse or detrimental to either party's interest in a transaction; (b) To timely disclose to both parties any conflicts of interest; (c) To advise both parties to seek expert advice on matters relating to the transaction that are beyond the dual agent's expertise; (d) Not to disclose any confidential information from or about either party, except under subpoena or court order, even after termination of the agency relationship; (e) Unless otherwise agreed to in writing after the dual agent has complied with RCW 18.86.030 (1)(f), to make a good faith and continuous effort to find a buyer for the property; except that a dual agent is not obligated to seek additional offers to purchase the property while the property is subject to an existing contract for sale; and (f) Unless otherwise agreed to in writing after the dual agent has complied with RCW 18.86.030 (1)(f), to make a good faith and continuous effort to find a property for the buyer; except that a dual agent is not obligated to: (i) Seek additional properties to purchase while the buyer is a party to an existing contract to purchase; or (ii) show properties as to which there is no written agreement to pay compensation to the dual agent. (3)(a) The showing of properties not owned by the seller to prospective buyers or the listing of competing properties for sale by a dual agent does not in and of itself constitute action that is adverse or detrimental to the seller or create a conflict of
THE LAW OF REAL ESTATE AGENCY interest. (b) The representation of more than one seller by different brokers licensed to the same firm in competing transactions involving the same buyer does not in and of itself constitute action that is adverse or detrimental to the sellers or create a conflict of interest. (4)(a) The showing of property in which a buyer is interested to other prospective buyers or the presentation of additional offers to purchase property while the property is subject to a transaction by a dual agent does not in and of itself constitute action that is adverse or detrimental to the buyer or create a conflict of interest. (b) The representation of more than one buyer by different brokers licensed to the same firm in competing transactions involving the same property does not in and of itself constitute action that is adverse or detrimental to the buyers or create a conflict of interest.
SECTION 7 Duration of agency relationship. (1) The agency relationships set forth in this chapter commence at the time that the broker undertakes to provide real estate brokerage services to a principal and continue until the earliest of the following: (a) Completion of performance by the broker; (b) Expiration of the term agreed upon by the parties; (c) Termination of the relationship by mutual agreement of the parties; or (d) Termination of the relationship by notice from either party to the other. However, such a termination does not affect the contractual rights of either party. (2) Except as otherwise agreed to in writing, a
broker owes no further duty after termination of the agency relationship, other than the duties of: (a) Accounting for all moneys and property received during the relationship; and (b) Not disclosing confidential information.
SECTION 8 Compensation. (1) In any real estate transaction, a firm's compensation may be paid by the seller, the buyer, a third party, or by sharing the compensation between firms. (2) An agreement to pay or payment of compensation does not establish an agency relationship between the party who paid the compensation and the broker. (3) A seller may agree that a seller's agent's firm may share with another firm the compensation paid by the seller. (4) A buyer may agree that a buyer's agent's firm may share with another firm the compensation paid by the buyer. (5) A firm may be compensated by more than one party for real estate brokerage services in a real estate transaction, if those parties consent in writing at or before the time of signing an offer in the transaction. (6) A firm may receive compensation based on the purchase price without breaching any duty to the buyer or seller. (7) Nothing contained in this chapter negates the requirement that an agreement authorizing or employing a broker to sell or purchase real estate for compensation or a commission be in writing and signed by the seller or buyer.
THE LAW OF REAL ESTATE AGENCY SECTION 9
SECTION 11
Vicarious liability. (1) A principal is not liable for an act, error, or omission by an agent or subagent of the principal arising out of an agency relationship: (a) Unless the principal participated in or authorized the act, error, or omission; or (b) Except to the extent that: (i) The principal benefited from the act, error, or omission; and (ii) the court determines that it is highly probable that the claimant would be unable to enforce a judgment against the agent or subagent. (2) A broker is not liable for an act, error, or omission of a subagent under this chapter, unless that broker participated in or authorized the act, error or omission. This subsection does not limit the liability of a firm for an act, error, or omission by a broker licensed to the firm.
Interpretation The duties under this chapter are statutory duties and not fiduciary duties. This chapter supersedes the fiduciary duties of an agent to a principal under the common law. The common law continues to apply to the parties in all other respects. This chapter does not affect the duties of a broker while engaging gin the authorized or unauthorized practice of law as determined by the courts of this state. This chapter shall be construed broadly.
SECTION 10 Imputed knowledge and notice. (1) Unless otherwise agreed to in writing, a principal does not have knowledge or notice of any facts known by an agent or subagent of the principal that are not actually known by the principal. (2) Unless otherwise agreed to in writing, a broker does not have knowledge or notice of any facts known by a subagent that are not actually known by the broker. This subsection does not limit the knowledge imputed to the designated broker or any managing broker responsible for the supervision of the broker of any facts known by the broker.
SECTION 12 Short Sale When the seller of owner-occupied residential real property enters into a listing agreement with a real estate firm where the proceeds from the sale may be insufficient to cover the costs at closing, it is the responsibility of the real estate firm to disclose to the seller in writing that the decision by any beneficiary or mortgagee, or its assignees, to release its interest in the real property, for less than the amount the borrower owes, does not automatically relieve the seller of the obligation to pay any debt or costs remaining at closing, including fees such as the real estate firm’s commission. ŠCopyright 2013 Northwest Multiple Listing Service Revised July 2013 RCW 18.86.120
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RE/MAX Whatcom County, Inc.
913 Lakeway Drive Bellingham WA 98229