New Distressed Property Law

New amendments to RCW 61.34 require that all current listing agreements of most residential properties be amended before June 12, 2008 and that new transaction forms be used in all residential sales. The new law also creates new duties for agents and brokers designed to protect owners of “Distressed Homes.”

New Distressed Homes Law –   Effective June 12, 2008

New amendments to RCW 61.34 require that all current listing agreements of most residential properties be amended before June 12, 2008 and that new transaction forms be used in all residential sales.  The new law also creates new duties for agents and brokers designed to protect owners of “Distressed Homes.”  Over the past three weeks, NWMLS and Washington Realtors have provided education regarding the new law to brokers throughout the state.  To further assist brokers and agents with this new law, NWMLS has developed the following resources:

• Legal Bulletin No.179.  The bulletin describes the new law, sets forth steps that brokers and agents must take to comply with the law, and details the changes to the forms required by the law.
• Educational DVD (produced in conjunction with Washington Realtors).  The DVD will be sent to every broker in Washington.  Brokers are encouraged to watch the DVD with their agents and discuss the issues related to the new law.  The video is also available for viewing on the NWMLS Discover web site (on the Xpress Forms page for statewide forms users).    
• New Rule 7(c).  The Board of Directors adopted Rule 7(c), effective May 30, 2008, to address additional issues created by the new law.  The new rule is fully explained in the Legal Bulletin No. 179.
• New forms.  NWMLS has revised a number of existing forms and created new forms to address the new law.  The revised and new forms are now available on Xpress Forms and are available to order in hard copy.  The forms are explained in detail in Legal Bulletin No. 179.
• AG Consumer Handout.  The Washington State Attorney General is preparing a consumer handout that describes the new law and explains the need for forms revisions.  This handout may be given to your clients to help explain the need to amend current listing agreements.  NWMLS will provide a link to the handout on the Discover web site (on the Xpress Forms page for statewide forms users) as soon as it is available.  NWMLS expects the handout to be available in the next few days