What Is Form 41? Washington’s Buyer Brokerage Services Agreement

NWMLS Form 41 is a Buyer Brokerage Services Agreement. It documents the working relationship between a buyer and a real estate firm, including representation and compensation. It is separate from the contract you use to offer to purchase a particular home.

For many buyers, being asked to sign a contract at the beginning of the search is a surprise. In our experience, some haven’t heard about the requirement and wonder whether it is legitimate. That is exactly why we want to explain it during a buyer consultation, before we start touring together.

Why buyers are being asked to sign

Washington’s written buyer-services-agreement requirement took effect January 1, 2024. It is a state-law requirement, rather than simply paperwork created by an individual broker or a consequence of a national lawsuit.

Under RCW 18.86.020, the firm must enter into the agreement before, or as soon as reasonably practical after, brokerage services begin. Our practice is to have the consultation and agreement completed before we begin touring homes together.

The law requires the written agreement. It does not require you to hire The Madrona Group. First, we need to decide whether we want to work together and whether the proposed terms make sense for your search.

We start with a buyer consultation

We start every buyer relationship with a consultation, either in person or on Zoom. Before talking about houses, we want to understand what matters to you. Your dream home, your motivation and your timing give us a much better starting point than a list of bedrooms and bathrooms alone.

• Your priorities: What are you hoping this move will change? What matters most, and where do you have flexibility?
• The current market: What are buyers facing in your price range and search area, and how might that affect our approach?
• The buying process: How will we search, evaluate homes, write offers, manage inspections and move toward closing?

As we discuss the process, we review the representation agreement and compensation. If we agree that we want to work together, we can put that commitment in writing. You should understand what you are signing and have room to ask questions.

Why we recommend six months and an exclusive relationship

Our preferred starting point is a six-month, exclusive agreement. Finding the right home can take time. We’re making a commitment to work on your behalf, understand your priorities and help you through the decisions along the way. We want us both committed to the same working relationship.

That recommendation is our approach, not a mandatory six-month rule. Washington law provides a 60-day default with the option of a longer term and requires a choice between exclusive and nonexclusive representation. We need to review the actual dates, covered properties and search area in your agreement.

We understand being hesitant when someone asks you to sign a contract. Our answer is to walk through it with you. Tell us what concerns you, whether it is the duration, the exclusivity, the cost or what happens if your plans change. We should address those questions before you commit.

Compensation: agree on the amount before the search

The bigger reason for this conversation is transparency. Some buyers assume the seller is responsible for paying their broker, so there is nothing for the buyer to discuss. That assumption can create a surprise when it is time to write an offer.

Your agreement should make the amount you agree to pay the firm clear. Compensation is negotiable. Under RCW 18.86.080, payment may come from the buyer, seller, a third party or compensation shared between firms. The agreement must address the compensation terms and relevant consents, including whether the broker will show properties when no compensation has been offered by another party or firm.

A seller may contribute, and we can negotiate for that as part of a purchase. We should understand what happens if the seller offers less than the amount in your agreement, or offers nothing. Review how any outside payment is credited and what, if anything, you could owe.

Knowing that before we begin helps us set affordability priorities. We want you thinking about your actual cash needs, rather than discovering an expense after you have fallen in love with a home. We can coordinate that discussion with your lender so the purchase plan fits your financing.

What to review before you sign

• The relationship: Which firm and broker will represent you, and what services are included?
• The scope and dates: What properties or area does the agreement cover, and when does it begin and end?
• The commitments: Review exclusivity, compensation, agency choices and what happens if circumstances change.

The agreement also addresses limited dual agency choices. Ask your broker to explain those choices before you initial or consent. Use the current agreement provided for your transaction; an older online example or video may not match the version you are signing.

Changing or ending the relationship

If your plans change or the relationship is not working, talk with the firm and review the signed terms. Under RCW 18.86.070, notice can end the agency relationship, but it does not otherwise erase either party’s contractual rights. Ending representation and obtaining a release from contractual obligations are different issues.

Get any agreed amendment or release in writing. Do not assume you can avoid obligations simply by choosing another agent or waiting for a date to pass. If there is a disagreement about legal obligations, get legal advice before proceeding.

Video: Buyer Brokerage Services Agreement explained

Use this video as additional background. Review the current written agreement and the terms proposed for your own search with your broker.

Buyer agreement questions

Ready to talk through your home search? Schedule a buyer consultation, or browse the Washington real estate FAQ library.