Senate Bill Report ESHB 2059 — Real Estate Broker Duties, With Public Testimony

Summary

Senate Bill Report on ESHB 2059 concerning real estate broker duties, as of February 17, 2022, for the Senate Committee on Business, Financial Services & Trade. It repeats the bill summary that brokers rendering real estate brokerage services owe statutory duties to all parties, and adds a Staff Summary of Public Testimony. Testimony in favor describes the bill as strengthening broker duties and asks for language on real estate love letters. Testimony under Other asks the committee to reinstate language prohibiting buyer unfair practice letters, also known as real estate love letters, citing fair housing laws. Persons Testifying are Mary Hull-Drury of Washington Realtors and Jasmyn Jefferson of Windermere Professional Partners (PRO) and Marley Hochendoner of Northwest Fair Housing Alliance (OTHER).

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Issuer: Congressional materials
Document type: Report
Date: 2022-02-22
Case: 2022 02 22 A29904 D243601 Bill Report 2059 S E Sbr Bfst Ta 22

Cite this document

“Senate Bill Report ESHB 2059 — Real Estate Broker Duties, With Public Testimony.” Original at app.leg.wa.gov, dated 2022-02-22. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-22-2022-02-22-a29904-d243601-bill-report-2059-s-e-sbr-bfst-ta-22/, SHA-256 7b61322418f8a7a0a8cb1eae74e0768626664e9b09c5a47ba6ddc833e18e6d6c.

Full text

SENATE BILL REPORT
ESHB 2059

As of February 17, 2022

Title: An act relating to real estate agency law, but only to clarify that the statutory duties of real
estate brokers apply to all parties and prohibiting the delivery of buyer unfair practice letters
to the seller of residential real estate.

Brief Description: Concerning real estate broker duties.

Sponsors: House Committee on Consumer Protection & Business (originally sponsored by
Representatives Gregerson, Leavitt, Morgan, Vick, Gilday, Rude, Chapman, Barkis and
Lekanoff).

Brief History: Passed House: 2/10/22, 95-0.
Committee Activity: Business, Financial Services & Trade: 2/17/22.

Brief Summary of Bill
• Establishes that brokers rendering real estate brokerage services owe
statutory duties to all parties in a transaction.

SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

Staff: Kellee Gunn (786-7429)

Background: Real Estate Brokers. A real estate broker is anyone who acts on behalf of a
real estate firm to perform real estate brokerage services under the supervision of a
managing or designated broker. Brokers may represent a buyer, seller, or—in a dual agency
relationship—both the buyer and seller if all parties agree in writing. Real estate firms and
brokers are licensed in Washington State through the Department of Licensing (DOL).

Duties as a Real Estate Broker. Certain duties apply between an agent and a seller, a seller
and a buyer, or in a dual agency relationship, including the duty to:
• exercise reasonable skill and care;

This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.

Senate Bill Report -1- ESHB 2059
• deal honestly in good faith;
• present all written notices and offers to and from either party in a timely manner;
• disclose all existing material facts known by the broker;
• account for all money and property received in a timely manner;
• provide information on the law of real estate agency at certain points in the sale of
real estate;
• disclose in writing to all parties information on who the broker represents to those the
broker is providing brokerage services to; and
• make a good faith effort to find a property for a buyer or sell the property for a seller.

These duties cannot be waived. The only duty that can be waived is the duty to make a
good faith and continuous effort to seek a buyer for a seller or a seller for a buyer. Under
written consent, dual agents are not obligated to seek additional properties to purchase for a
buyer or seek additional offers for the seller.

Summary of Bill: Duties as a Real Estate Broker. Regardless of whether a broker is an
agent, or what the relationship is between the broker and client, a broker who renders real
estate brokerage services owes certain statutory duties to all parties on the disclosure,
accuracy, and timeliness of information provided.

Appropriation: None.

Fiscal Note: Not requested.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: I'm a full-time realtor, acting as a principal
broker. This is about strengthening real estate broker duties. There are many questions
about the way buyers and sellers approach their positions in the sale. Please put the
language in again around real estate love letters. There is real concern about bias with
people of color and people from the LGBTQ+ community when buying a home. Every day
our members represent individuals making the biggest purchase they will make in their
lifetimes. This bill will require brokers to provide statutory duties to all parties. The
original bill that passed out of the House committee included language prohibiting real
estate love letters.

OTHER: Please reinstate the language that prohibited the use of buyer unfair practice
letters also known as real estate love letters. This language will ensure that neither the
broker for the seller nor the broker for the buyer is at risk of violating fair housing laws.
Many are struggling to find a home to purchase, but solutions should not include letters that
may lead to discrimination.

Senate Bill Report -2- ESHB 2059
Persons Testifying: PRO: Mary Hull-Drury, Washington Realtors; Jasmyn Jefferson,
Windermere Professional Partners.

OTHER: Marley Hochendoner, Northwest Fair Housing Alliance.

Persons Signed In To Testify But Not Testifying: No one.

Senate Bill Report -3- ESHB 2059

File and source

File: 2022-02-22_a29904_d243601_bill-report-2059-s-e-sbr-bfst-ta-22.pdf
Size: 8,807 bytes
SHA-256: 7b61322418f8a7a0a8cb1eae74e0768626664e9b09c5a47ba6ddc833e18e6d6c
Our copy: 2022-02-22_a29904_d243601_bill-report-2059-s-e-sbr-bfst-ta-22.pdf
Original: app.leg.wa.gov