HB 1081 Scrambles the Eggs of Real Estate Investors

House Bill 1081, passed in the last legislative session, has taken effect as RCW 61.40 as of January 1, 2026. The new law will change things for real estate investors and, as most new laws do, will introduce a number of uncertainties for buyers, sellers and others.

The Broad Strokes:

• Essentially, any real estate that is not listed or otherwise available for purchase will enjoy these protections.
• The protections in the new law, rights to rescind a sale and rights to an appraisal, are not available if a real estate broker is involved.
• Violations of the law are violations of the Consumer Protection Act.

The Details:

General Application

The new law applies to the solicitation for the “purchase of real property,” not currently publicly available or listed. The application of the law is to all real estate, not just owner-occupied, residential or even commercial, which is significant.

Previous legislation, such as RCW 61.34, protects owner-occupants of real estate. The new legislation is much broader.

Additionally, the language “publicly available” presumably applies to listed properties and “for sale by owner” properties. It is unclear as to whether the protections will apply to situations such as the Zillow “make me sell” category or other similar circumstances where an owner drops a hook in the water to ascertain valuation.

The protections afforded sellers don’t apply if the buyer or seller is represented by a real estate broker. This clause is somewhat unclear; it is designed to interject a professional into the transaction to protect the parties from unscrupulous operators.

What level of representation required is somewhat unclear. A formal representation agreement would require a broker to communicate on behalf of the party being represented, obviating any ability to negotiate directly on the part of the buyer or seller, which is one of the reasons real estate entrepreneurs do what they do.

If a real estate broker is not involved in the transaction, here is what is required:

Upon the execution of a purchase and sale contract for real state, the buyer must offer the following:

1)     Right of the seller to an appraisal paid for by the buyer, chosen by the seller.

2)     Right of seller to cancel.

Those rights need to be spelled out in at least ten-point type in the body of the purchase and sale contract.

In the event the protections of the law are invoked, the appraisal needs to be ordered by the seller within three business days of execution of the offer.

The seller has four business days to cancel the purchase and sale contract after receipt of the appraisal with no required explanation.

If there is no appraisal requested, a seller my cancel the contract ten business days after its execution.

Finally, violations of the new law are per se violations of the Consumer Protection Act, which will award the aggrieved party treble damages plus attorney fees and costs. Additionally, this law does not apply to public property.

Take Aways

• This is a broad law that applies to essentially ALL unsolicited real estate transactions.
• Violations will be very costly.
• Having a broker involved is likely your best bet to avoid jeopardy.
• If you don’t have a broker involved, make sure your documents comply with the law.
• Consider consulting with an attorney for a more detailed analysis of your specific situation.