*** Of Special Interest ***  Answers provided by Annie Fitzsimmons, the Washington REALTORS Legal Hotline Lawyer

Question of the Month

What happens if a buyer refuses to sign the Buyer Agency Agreement even after a lengthy explanation of the law requirement and benefits to the buyer? Is the Broker barred from working with the buyer? Would a signed disclosure from the buyer stating that they were presented with the Buyer Agency Agreement but are refusing to sign it suffice?

Answer

A broker is prohibited from providing residential RE Brokerage Services to a consumer without a brokerage services agreement signed by the consumer. A disclosure signed by buyer does not satisfy Washington law. If residential buyer refuses to sign an agreement, broker may not provide services to the buyer. The agreement may be exclusive or non-exclusive, it can be for a short duration and it can cover only the properties shown by broker to buyer. But, if the residential buyer refuses to sign an agency agreement even if it is narrowly tailored, then broker cannot show properties to buyer...and it is not clear why broker would want to do so. If broker narrowly tailors an agency agreement and residential buyer still refuses to sign, that may mean that buyer has no intention of creating a situation where broker will be compensated in exchange for broker's provision of RE Brokerage Services.

Previous Question of the Month

I know that it could be really expensive and time-consuming for a buyer to remove a seller from the property, if buyer allows seller to remain in possession of the property after closing. Is there any lease language that should now be included given the new "just cause" requirement?  In your opinion, if Buyer wants to allow Seller to retain possession because Buyer wants to make a competitive offer, what is the best way to protect buyer.

Answer

There is no contractual way to guarantee buyers that sellers will actually vacate the property, post-closing, when a seller's post-closing occupancy right expires The only way for buyer to ensure that seller will release possession timely is if seller releases possession at closing and buyer can verify seller's vacancy of the property at or before closing. If a seller is granted the right to live in buyer's home, after closing, seller becomes buyer's tenant, subject to all the protections of the Washington Residential Landlord Tenant Act, including the provisions related to "Just Cause". There is nothing that can be added to an occupancy agreement that will change this statutory outcome.

If a buyer wishes to allow seller post-closing possession of buyer's home, buyer needs to understand the risks involve. And buyer is well advised to seek legal counsel before extending a post-closing possessory right to seller.

Do you have a question?  We cannot give you legal advice, but we do have quite an archive of legal opinions that we would share.  Call Jack at (425) 422-2267.