Why are sellers being asked to sign new listing agreements?
Because the Legislature did not exempt licensed real estate sales persons from the law, sellers who are behind on their loans or real property taxes may be asked to sign a revised listing agreement limiting the services offered by the real estate agent or broker. Washington REALTORS have interpreted the law to mean that it prohibits an agent from providing services to a distressed home seller without first having a distressed home consultant agreement in place. Without new agreements, agents and brokers risk unanticipated liability in such cases. Washington REALTORS and NWMLS recommend that agents and brokers who use the statewide listing agreement require all sellers to sign a new listing agreement or listing agreement addendum, clarifying the seller’s status under the new law. According to the REALTORS, the current listing agreement does not satisfy the requirements for a distressed home consultant agreement. The distressed home consultant agreement must be in larger type than the ex
