Senate Bill Report SB 5399 — Future Listing Right Purchase Contracts (January 24, 2023)
Summary
Senate Bill Report on SB 5399, as of January 20, 2023, titled "An act relating to future listing right purchase contracts." It lists Senators Mullet and Dozier as sponsors and committee activity of Business, Financial Services, Gaming & Trade on 1/24/23. The bill limits the duration of future listing right purchase contracts to a term no longer than five years and allows those contracts to act as liens that are subordinate to home financing, refinancing, or home equity line of credit. The report lists the appropriation as None and the fiscal note as not requested. It states that the bill contains an emergency clause and takes effect immediately.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2023-01-24
- Case
- 2023 01 24 A30526 D248714 Bill Report 5399 Sba Bfgt 23
Cite this document
“Senate Bill Report SB 5399 — Future Listing Right Purchase Contracts (January 24, 2023).”
Original at app.leg.wa.gov, dated 2023-01-24. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-24-2023-01-24-a30526-d248714-bill-report-5399-sba-bfgt-23/
, SHA-256 fc443e132999acff50e50b153986bcf20e9ee7078445c0ee83bc903bbd800726.Full text
SENATE BILL REPORT
SB 5399
As of January 20, 2023
Title: An act relating to future listing right purchase contracts.
Brief Description: Providing for future listing right purchase contracts.
Sponsors: Senators Mullet and Dozier.
Brief History:
Committee Activity: Business, Financial Services, Gaming & Trade: 1/24/23.
Brief Summary of Bill
• Limits the duration of future listing right purchase contracts to a term no
longer than five years.
• Allows future listing right purchase contracts to act as liens that are
subordinate to home financing, refinancing, or home equity line of
credit.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE
Staff: Clinton McCarthy (786-7319)
Background: Real Estate Brokers. The Department of Licensing is responsible for
licensing and regulating real estate brokers, who must meet minimum age, education, and
experience requirements to obtain a license to perform real estate brokerage services on
behalf of a licensed real estate firm. Performing real estate brokerage services includes, but
is not limited to, rendering the following services directly or indirectly on another's behalf
for compensation:
• listing, selling, purchasing, or renting real estate;
• negotiating or offering to negotiate the purchase, sale, or lease of real estate;
• advising buyers, sellers, landlords, or tenants in connection with real estate; and
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- SB 5399
• advertising oneself to the public as engaging in such services.
A broker is an agent when the broker enters into an agency relationship with a buyer or
seller to perform real estate brokerage services, which relationship may be created by
written agreement or statute. Regardless of whether a broker is an agent, a broker owes to
all parties to whom the broker renders real estate brokerage services certain duties, which
may not be waived, including:
• exercising reasonable skill and care;
• dealing honestly and in good faith;
• presenting all written offers, notices, and other written communications to and from
parties in a timely manner; and
• disclosing existing material facts a broker knows and are not apparent or readily
ascertainable to a party.
Duration of Agency Relationship. "Agency relationship" means a written agreement
between a real estate firm and a buyer or seller relating to the performance of real estate
brokerage services.
Under existing statute, the agency relationship between a broker and a buyer or seller is
until the earliest of the following:
• completion of performance by the broker;
• expiration of the term agreed upon by the parties;
• termination of relationship by mutual agreement between the parties; or
• termination of the relationship by notice from either party to the other. Such a
termination does not affect the contractual rights of either party.
There is no limit under existing statute on how long an agency relationship can last. Nothing
precludes an agent from providing a financial incentive in exchange for a future listing right
purchase contract where a seller receives a financial incentive in exchange for providing an
agent with the right to list their home at a future date.
Summary of Bill: The term "future listing right purchase contract" is defined as a
contractual right that obligates a seller to enter into a real estate listing agreement with a
purchasing company in the future relating to the sale of a residential home, townhouse, or
condominium. These contracts cannot last longer than five years from the purchase date,
which is the date on which the prospective seller agrees with the purchasing company to
give their future listing right to the purchasing company in exchange for moneys paid to the
seller as consideration for entering into a future listing right contract.
Listing right purchase contracts are permitted to act as a lien that is subordinate to a
financing, refinancing or home equity line of credit.
Appropriation: None.
Senate Bill Report -2- SB 5399
Fiscal Note: Not requested.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: The bill contains an emergency clause and takes effect immediately.
Senate Bill Report -3- SB 5399
File and source
- File
- 2023-01-24_a30526_d248714_bill-report-5399-sba-bfgt-23.pdf
- Size
- 6,063 bytes
- SHA-256
- fc443e132999acff50e50b153986bcf20e9ee7078445c0ee83bc903bbd800726
- Original
- app.leg.wa.gov