Washington Buyer Brokerage Rules Changed in 2024

Washington updated its statutory agency law in 2024 to require written buyer brokerage agreements with a 60 day minimum term, and any candidate using materials from before that date will fail the agency section.

The WREO administers real estate licensing in Washington. The PSI exam includes 40 state specific questions and 100 national questions, with a passing threshold of 70%. Three topics account for the most state-portion errors: the Shoreline Management Act's permit framework, the 2024 updates to Washington's statutory agency law under RCW 18.86, and the graduated Real Estate Excise Tax rate structure. I'm a licensed broker in Washington and based in Seattle. The 2024 agency changes were the topic every office was talking about, and now they're on the exam.

Shoreline Management Act

Washington's Shoreline Management Act covers not just ocean beaches but all development along Puget Sound, rivers, and lakes. The exam tests all three of the SMA's policy areas, not just the environmental protection provisions that candidates assume are the focus.

Washington's 1972 citizen-initiative SMA regulates all development along ocean, Puget Sound, river, and lake shorelines, the exam tests the three policy areas (shoreline use, environmental protection, public access) and permit types unique to Washington.

The PSI exam tests the SMA permit types (Substantial Development Permits, Conditional Use Permits, and Variances) and when each applies. Know that projects below a specific dollar threshold may qualify for an exemption, and know the three SMA policy areas (shoreline use, environmental protection, and public access) as distinct categories rather than a single concept. If you are practicing in Seattle or anywhere along Puget Sound, you will encounter SMA permit questions in the real world, and you will see them on this exam.

Agency Law (Statutory)

Washington's agency law was overhauled in 2024: RCW 18.86 now requires a written buyer brokerage agreement with a minimum 60-day term before showing property, replacing the common law framework that most prep materials still describe.

Washington replaced common law fiduciary duties with statutory duties under RCW 18.86, updated in 2024 to require written buyer brokerage agreements with a 60-day minimum term, students using outdated materials will fail these questions.

The PSI exam tests the specific written agreement requirement, the 60-day minimum term, and what the statutory duties are for buyer's agents under RCW 18.86. These duties differ from common law fiduciary duties in specific ways that the exam tests directly. Candidates using any prep material printed before 2024 will be studying the old law and failing the new questions.

The WREO tests the 2024 changes as current law, not as an update. Know the new written agreement requirement as the baseline standard. The pre-2024 common law framework is no longer tested.

Excise Tax (REET)

Washington's REET uses multiple price tiers with different rates at each threshold, and the exam presents sale prices that require calculating across two or three brackets. A single rate applied to the entire price is always the wrong answer.

Real estate excise taxes are tested on Washington's state exam in a way that few other states replicate. Idaho does not impose a state-level real estate excise tax, and Montana has no general sales tax. Washington's REET applies to nearly every property transfer, and the exam tests who pays it, how it's calculated, and what the exemptions are.

Washington imposes a graduated Real Estate Excise Tax with rates from 1.1% to 3.0% based on selling price tiers, plus local REET up to 0.50%, multi-bracket calculations where one misplaced threshold turns a correct answer wrong.

Know the REET rate tiers and the specific price thresholds that trigger each rate change. The exam will give you a sale price and ask for the total REET owed, including both state and local components. The local REET adds up to 0.50% on top of the state rate, and candidates who omit it won't find their number among the answer choices.

Know the REET exemptions (transfers between family members and certain government transfers are exempt), because the exam presents scenarios where you must first determine whether the tax applies at all before calculating an amount.