Real estate news

Real estate license law changes effective July 1, 2010

A new licensing law will take effect July 1, 2010. When the law takes effect:

• A salesperson license will continue to be in effect, but will be considered a broker license.
• An associate broker, branch manager, or designated broker license will continue to be in effect, but will be considered a managing broker license.
• All licensees will be required to take a transition course which will be approved for continuing education. The requirements for course length and content will be determined by the Real Estate Commission and the Department of Licensing.
• Licensees will be issued a new license after they complete the transition course and when they renew their licenses the first time after the law takes effect.
• The education required for getting or renewing a license will change.
• The designated broker will be allowed to be licensed to mulitple firms as the designated broker only.
• Firms will have the option to use one or more assumed names in the conduct and operation of their real estate business.
• The definition of “business opportunity” will have been clarified so a real estate license will be required only if the business opportuntiy includes an interest in real property.

New licensing requirements

When the law takes effect, you must meet the following requirements to get a new license:

For more information about the new law, see Frequently asked questions.

Governor Gregoire appoints new Real Estate Commissioner

We welcome our newest real estate commissioner, Jeff Thompson. Governor Christine Gregoire selected Richland real estate broker Mr. Thompson to serve on the Washington Real Estate Commission as of January 22, 2009. His term will expire on August 14, 2014.

Jeff Thompson has been in real estate since 1990 and joined his partner, Dave Retter, at Windermere Tri-Cities in 1996. Jeff’s passion is the personal coaching of his agents. He was trained by CoachU.com and is currently on staff with RealEstateCoach.com (a real estate agent coaching company). Jeff is also involved in his local Realtor Association, serving as the President of the Tri-Cities Association of Realtors in 2003. He is currently the Chairman for the Tri-City Regional Chamber of Commerce.

Broker price opinions

We have received many questions from licensees about issuing brokers price opinions and if the licensee can receive direct compensation. A brokers price opinion, often referred to as a comparative market analysis (CMA), is any oral or written report of property value. RCW 18.140.010(4) requires individuals producing brokers price opinions to be licensed under RCW 18.85.

We have determined that an individual must be actively licensed in order to issue a brokers price opinion. Please be advised that it is considered a violation of RCW 18.85.230(19) for a licensee to receive a commission, compensation, or any form of valuable consideration from anyone except the licensed real estate broker with whom he or she is licensed.

Earnest money

Routine audits of broker transaction files still indicate that a large number of firms are not complying with the delivery and/or deposit requirements regarding earnest money.

All earnest money funds must be deposited into the brokers trust bank account not later than the next banking day unless the purchase and sale agreement states the check is to be held for a specific period of time or the occurrence of a specific event. The delivery of the funds to escrow is the broker's responsibility.

We continue to receive complaints from sellers when the transaction fails that the funds were not deposited or never delivered to the escrow company. Not only is the untimely delivery of earnest money a licensing problem, but also not providing this information to the seller that the earnest money was never collected or delivered can be considered failure to disclose.